Growing economies

Question 1

What has the deindustrialisation of developed countries such as the UK meant for China and India?

Answer 1

It has led to industrialisation in China and India as they manufacture goods and export them all over the world

Question 2

What are 2 pros and cons of economic growth for consumers?

Answer 2

+ Average consumer income increases as more people are in employment and wages increase
+ Feel more confident in the economy so they increase consumption which increases living standards.
- Likely to be higher demand pull inflation
- Economic growth doesn’t benefit everyone and could lead to inequality

Question 3

What is a positive and negative about increasing incomes?

Answer 3

+ Could lift people out of poverty especially in developed countries

• Increase in income may not be distributed equally across the population which could increase inequality as a result.

Question 4

Real values and constant prices are similar as?

Answer 4

They are both consider inflation

Question 5

nominal values and current prices are similar as?

Answer 5

They both do not consider inflation

Question 6

What is the formula to find out the real value of something?

Answer 6

Nominal value x100 / index number