Economic Growth Flashcards
Define economic growth
Economic growth refers to the increase in the production of goods and services in an economy over a period of time, usually one year
Show how short-term economic growth is measured by year-on-year percentage increases in real GDP per capita
Real GDP per capita 2 - Real GDP per capita 1
Percentage increase= —————————————————————— x 10
Real GDP per capita 1
Explain possible causes of economic growth in terms of the factors of production (CELL)
CAPITAL- quantity of capital and quality of capital
LAND- quantity of land and quality of land
ENTERPRISE - quantity, and quality of enterprise
LABOUR- quantity and quality of labour
/show how long-term economic growth is represented by a shift of the PPC
I shift out of the BBC means that the economy is now able to produce more capital and consumer goods with its available and scarce resources. This shows;
-Higher standard of living
-Economic growth
-Better resource utilisation
Assess the limitations or challenges to economic growth
- Limited resources. Depletion of natural resources, such as water, oil and forces can limit Growth.
- Environmental degradation. Pollution and climate change can disrupt economic activities and health
- Social and political instability. Political instability and social unrest can undermine investor confidence and disrupt economic activities.
- Economic factors, such as inflation and unemployment can lead to slower growth.
Define economic development
Economic development is broader than economic growth. It refers to the process by which the economic well-being and quality of life of a nation, region or local community are improved.
Distinguish between economic development and economic growth
Scope; economic growth has a narrow focus on the increase in GDP, whilst economic development has a broad focus on overall improvement in quality of life.
Measurement ; economic growth uses GDP, real GDP per capita, and economic growth rate. Economic development uses poverty rates, literacy rates, life expectancy and more.
Focus; economic growth focuses on quantity of economic output, whilst economic development, focuses on quality of life and overall well-being
State the three pillars of resource sustainability
SEE
Social development
Economic development
Environmental protection
Show key strategies that can help achieve resource sustainability
- Enhance social development
- Improve education and awareness, strengthen community engagement, enhance health and well-being, insure equity and inclusion - Promote sustainable economic practices.
-Adopt a green technologies, encourage circular economy, implement sustainable agriculture, support sustainable businesses - Protect and conserve the environment.
- Implement conservation strategies, manage resource sustainability, reduce pollution, address, climate change
Name constraints on resource sustainability
- Social constraints
Inequality , lack of education and awareness, cultural or social barriers - Economic constraints.
- Short term focuses, financial limitations, market failures - Environmental constraints.
- Resource depletion, climate change, pollution
State the main characteristics of less developed countries
- Low income levels.
- High population growth rates.
- Limited industrialisation.
- Poor health and education systems.
- High unemployment and underemployment.
- Poor infrastructure.
- Political instability.
Why did the UN create SDGs?
-Continue the progress
-Solve big problems
-Sustainable future
-Clear goals
-Urgent issues
- Accountability
- Working together
Explain why an LDC with the same economic growth rate as a developed country will not catch up
- Developed countries have more diversified economies and higher productivity than LDCs, which would create a gap, making it difficult for the LDC to catch up
- A developed country will have more GDP in terms of amount rather than percentage.
- Developed countries have a lot of capital and income accumulation that can be reinvested. LDCs do not have that much capital and struggled to generate the same investments.
Asses the social impact of scarcity on LDCs
- Health and malnutrition problems due to insufficient food and healthcare availability
- Inadequate education and resources due to scarcity of schools, teachers and learning materials.
Assess the impact of scarcity on LDC economies
- Limited economic growth due to resource constraints and agriculture dependability.
- High poverty rates due to income, inequality and unemployment.
