Economic growth Flashcards
What does ‘economic growth’ mean?
An increase in the level of economic output over time.
At what percentage does SA’s economy grow by each year?
Approx. 3% each year
Name 7 strategies to improve economic growth.
– Promoting entrepreneurship and encouraging new small businesses.
– Encouraging existing businesses to expand and increase their production.
– Improving the level of productivity to produce more goods and services.
– Modifying production techniques to make them more effective so that output increases.
– Ensuring better management of resources so that we gain maximum use from them.
– Improving business management practices so that companies become more effective and productive.
– Encouraging investors from other countries to invest moment in local businesses or start businesses in SA.
(MEETRIP)
Name four of the results of economic growth.
– There are more goods and services for consumers to choose from which means there is more variety and more items for them to purchase.
– Employment levels rise and unemployment levels drop. This reduces poverty.
– The level of income increases because more people profit from the sales of more goods.
– The average standard of living increases because more people have jobs and money is being circulated in the economy.
Do the benefits of economic growth affect everyone?
No, they don’t always flow to the poor people in the country. Sometimes economic growth simply results in rich people getting richer and poor people remaining unchanged.
