Th2.5: Economic Growth - Current and Future Living Standards Flashcards
What will an increase in production of goods and services do?
increase jobs so there will be less unemployment and less people on benefits
What will there be more of?
goods and services for people to enjoy, meaning the poor will be able to get them instead of only the rich
What tends to increase due to economic growth?
housing standards and quality of food
health and life expectancy, as well as a higher quality of life
What will increased government spending lead to?
improved living standards both now and in the future, as better educated people tend to have higher living standards
Where is economic growth likely to have the highest benefits?
developing countries
How could there be a decrease in future living standards?
exploitation of the environment - rise in income = more access to electricity and using it more freely. this causes depletion of non-renewable resources, increasing levels of pollution and affecting future generations
How can higher income earners positively affect current and future living standards?
buy cleaner fuels - households
devote resources to research and development - countries
less children meaning less future expense of resources - households
How could economic growth result in increased inequalities?
the rich may be the only ones that have gained from the economic growth and they may even lower the living standards of the poor by exploiting the poor
Who are growth pessimists?
those who question the long-term sustainability of growth
Renewable resources will be depleted due to the concept of the Tragedy of Commons, which is…
if something is common, no one looks after it and so the quality decreases e.g destruction of rainforests
