Economic Growth Flashcards

1
Q

What is economic growth?

A

Economic growth is when the amount of goods and services produced in the economy increases from one year to the next.

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2
Q

Outline and explain five positive effects of economic growth on society.

A

Employment-A greater demand for goods and services will lead to increased employment
Improved Standard of Living-People will have more money to spend
Increase Government Revenue-This is due to increased employment meaning more Income Tax collected
Decreased Government Expenditure-This is due to increased employment meaning less people needing social welfare
Improved Infrastructure-Countries with high economic growth spend more money improving telecommunications, transport.

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3
Q

Outline and explain four negative effects of economic growth on society.

A

Inequalities-Even with economic growth, many of the gains from growth may be only for a few people and vulnerable people stay vulnerable
Inflation-Increased demand for goods and services can cause inflation (rise in prices)
Increased Life Span-An increase in standard of living leads to longer life expectancy. The ageing population means more spending on healthcare
Obesity-An increase in standard of living could lead to income being spent on too much goods and services which can lead to obesity.

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4
Q

Outline and explain two positive effects of economic growth on the environment.

A

Investment in Environmentally Friendly Technologies-If companies are making more money they may choose to invest in environmentally friendly business practices to be more attractive to consumers e.g. low carbon
Time & Funding-When economies are doing well governments have time and funding to address environmental concerns e.g. climate change

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5
Q

Outline and explain four negative effects of economic growth on the environment.

A

Non Renewable Resources-Increased demand for goods (import/export) requires planes and ships that burn fossil fuels. These are in limited supply.
Traffic Congestion-The increase in demand for goods requires delivery which causes traffic congestion and pollution e.g. carbon emissions.
Increased waste-Increase consumption of goods and services results in more waste which will require landfill.
Destruction of nature-Greenspace and natural habitats are eroded from the building of new factories

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