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CONSUMER- BENEFITS
increase in demand for housing as people have more money so can afford to buy properties- will increase house prices
shares are likely to increase in value as businesses are making more money and future prospects are good
rising prices of shares and housing will increase wealth and lead to positive wealth effect
improved productive efficiency due to better tech could lead to lower prices or higher quality goods
some argue that increased economic growth will lead to increased happiness- not necessarily the case
CONSUMER- COSTS
could lead to increased inequalities and so may not have any effect on the average consumer and may lead to inflation, which has negative effects for consumers
FIRMS- BENEFITS
investment will increase since businesses are more successful- will have more money to invest and more incentive to invest as they will know they can make money from their investments
business confidence will improve as there are potential demand increases for businesses’ products and this confidence will also lead to increased investment
as a result of increased investment from both businesses and govs, tech will improve
there will be more research and development done to invent more tech- likely to increase productive efficiency and lead to lower costs
combination of higher demand and lower costs is likely to lead to higher profits
economic growth also provides opportunity for new firms to establish themselves and allows existing ones to make more profit
FIRMS- COSTS
firms who sell inferior goods (with negative income elasticities) may lose out
changing techs and globalisation also mean that some firms find their markets disappearing e.g. DVD rental stores
GOVERNMENT- BENEFITS
tax revenues will rise as more g and s are being bought, more income is being earnt and more profits being made
means the gov has more money to put into the NHS, education, benefits etc.; quality of these systems will be improved, and this will help to improve living standards
can help to reduce budget deficit, perhaps even bringing about a budget surplus which would allow money to be saved for future recessions
GOVERNMENT- COSTS
means people expect more from gov i.e. better education, better roads etc.
CURRENT AND FUTURE LIVING STANDARDS- BENEFITS
EG will result in lower poverty levels
increase in the production of g and s will increase jobs so less unemployment and less people on benefits
wages likely to increase
there will be more g and s for people to enjoy
housing standards and quality of food increases due to EG
health usually increases: not only does life expectancy rise but people have a higher quality of life in old age
increased gov spending will lead to improved living standards both now and in future, as better educated people usually have higher living standards
EG is likely to have highest benefits in developing countries
could be argued that people w/ higher incomes able to buy cleaner fuels and richer countries can devote resources for research and development of cleaner resources and ‘greener’, more efficient tech
higher income households tend to have less children which lowers natural rate of population growth, meaning less resources needed for future
CURRENT AND FUTURE LIVING STANDARDS- COSTS
could be decreased future living standards bc of exploitation of env
rise in income means more people have access to electricity etc. and use it more freely
causes depletion of non-renewable resources, concern about sustainability of growth for future gens and increased levels of pollution/waste/congestion
EG may result in increased inequalities
rich may be only ones that gained from EG and may even lower the living standards of poor by exploiting poor