Conflict Trade offs between objectives and policies 2.6.4

Question 1

Economic growth vs. protection of the environment

Answer 1

As the economy grows, we expect more resources to be used. As we use resources and produce goods, we produce pollution and noise and destroy habitats. Economic growth in China has been rapid but it has led to serious levels of pollution. Economic growth can be achieved without damaging the environment, but the growth is likely to be slower and have higher costs.

Question 1

Economic growth vs. Balance of Payments

Answer 1

Some countries such as India have seen rapid economic growth leading to balance of payments problems. The country is so large
that its industry is largely producing goods for its own people and the wealth of the people has led to increased demand for imported goods