Module 8: Economic Growth

Question 1

What does economic growth study?

Answer 1

1. It studies the long behavior of economic activity and its implications on the well being of the population.

Question 2

What does development study?

Answer 2

It studies why some countries are poor compared with others and why some countries who were poor 50 years ago are now among the richest while others remain poor.

Question 3

What does ‘annual real per capita gdp mean’?

Answer 3

This is a measure of how much goods and services individuals can purchase on average over a year

the real per capita GDP is not allocated equally across individuals and therefore hides the existence of inequality

Question 4

What is the weakness of ‘annual real per capita GDP mean’?

Answer 4

its ability to measure the average standard of living or the average well-being.