6. Economic Growth or Economic Welfare?

Question 1

What are the benefits of Economic Growth? (4)

Answer 1

Greater availability of goods and services
Increased employment
Increased tax revenue
Improved living standards

Question 2

What are the downsides of Economic Growth? (4)

Answer 2

Technology may replace workers
Using up scarce resources quicker
Increased pollution and negative externalities
Inequality

Question 3

What is Sustained Economic Growth?

Answer 3

Ensuring we reduce waste, pollution and the rate of usage of scarce resources

Question 4

What is GDP per capita?

Answer 4

The average income per head of population

Question 5

How is measuring by GDP per capita better?

Answer 5

Takes into account changes of population

Uses real figures not nominal ones

Question 6

How is measuring by GDP per capita worse?

Answer 6

Doesn’t take into account what they buy

The real distribution of wealth may be unequal

Question 7

What is the HDI?

Answer 7

Human Development Index.

A system used by the UN to measure living standards and welfare in countries

Question 8

What are the three main indicators of the HDI?

Answer 8

Life expectancy at birth
Average income
Level of education - measured by the amount of time an average 25 y/o spends in the education system

Question 9

What is NZ’s rank in the HDI?

Answer 9

16th