costs and benefits of economic growth

How does economic growth improve living standards?

Rising incomes allow consumers to afford more goods and services, improving quality of life.

How does economic growth increase profits for firms?

Higher consumer demand increases sales revenue and profitability.

How does economic growth create jobs?

Firms expand production to meet rising demand, increasing demand for labour.

How can economic growth reduce poverty?

More employment opportunities and higher incomes reduce absolute poverty

How does economic growth increase government revenue?

Higher incomes and profits increase tax revenues, creating greater fiscal dividends

What can governments do with increased tax revenue from growth?

Reinvest into public services such as healthcare, education, and infrastructure.

What are the human costs of economic growth?

People may work longer hours and sacrifice leisure time to meet rising demand.

What are the environmental costs of economic growth?

Faster growth can overexploit finite resources and increase pollution, compromising sustainability.

How can economic growth worsen income inequality?

High-income earners often benefit more from wage increases than low-income earners, widening the income gap.