3.1 Economic Growth main concepts

Question 1

how to calculate the rate of growth

Answer 1

change in GDP over original GDP x100

Question 2

how are output and income related

Answer 2

total value of output = incomes for producers, so when there is economic growth, both incomes and output rise

Question 3

economic growth is ___ of the ____ ____ of government policy

Answer 3

eg is one of the main aims of government policy

Question 4

how to calculate GDP per capita

Answer 4

GDP/population

Question 5

what does the GDP per capita signify

Answer 5

the avg income of a person in the country

Question 6

types of income

Answer 6

wages, interest, profit, and rent

Question 7

when are the terms boom and recession used

Answer 7

when we are analysing data regarding GDP

Question 8

how does economic growth come about

Answer 8

occurs when the economy is ABLE to produce more goods and services

Question 9

what do you need to produce more g/s

Answer 9

to produce more g/s, you need the factors of production (Capital, Enterprise, Land, and Labour (C.E.L.L)). this means you must have large quantities of the FoPs in order to produce more g/s