economic growth (3.1) Flashcards
1
Q
What is economic growth
A
Growth in GDP over time
2
Q
What is growth domestic product (GDP)
A
The total value added of goods and services produced in the country in a year
3
Q
What is the rate of growth formula
A
Rate of growth= (change in GDP / original GDP ) x 100
4
Q
What is GDP per capita
A
GDP divided by the population
5
Q
What is a boom
A
A period of high economic activity and high levels of employment
6
Q
What is a recession
A
A period when the country’s GDP falls for two or more consecutive quarters
7
Q
What are the causes of economic growth
A
- investment : spending on capital goods
- changes in technology : quality of capital goods improve
- education and training
- labour productivity
- size of workforce : increased supply of labour
- natural resources
- government policies :development of infrastructure
8
Q
What are the benefits of economic growth
A
- rise in living standards
- a reduction in poverty
- rise in welfare of whole population : government will get more money in tax
- fall in unemployed: less money spent on benefits
9
Q
What are the costs of economic growth
A
- environmental costs
- air pollution
- global warming
- congestion : London big working city
- loss of non renewable resources
- price level may rise
