Economic Factors/Growth

Question 1

What is Economic growth?

Answer 1

The value of national output produced in the economy

Question 2

What happens when a country experiences economic growth?

Answer 2

It enables increased living standards, improved tax revenues and helps create new jobs

Question 3

What impacts demand?

Answer 3

Consumer Spending, Government spending, Investment, Imports and Exports

Question 4

Examples of what could increase demand

Answer 4

-Wages increase
-Income tax reduction
-Lower interest rates

Question 5

What are the factors of production?

Answer 5

-Land
-Labour
-Capital (machinery)
-Enterprise (ideas)

Question 6

What would happen if the factors of production wer to change?

Answer 6

Economic Growth would occur

Question 7

Advantages of Economic Growth

Answer 7

-Higher incomes for workers and firms
-Increased tax revenue which could be spent on public services
-Creates employment

Question 8

Disadvantages of Economic Growth

Answer 8

-Inflation
-Enviromental costs
-Decline in living standards. Higher growth could cause congestion, more crime, increased dissatisfaction and pollution

Question 9

Is an increase in wages demand or supply sided growth

Answer 9

Demand

Question 10

Is an increase in workers demand or supply sided growth

Answer 10

Supply