economics-3.1 economic growth

what is economic growth?

the increase in the production of goods and services in an economy over time, typically measured as the percentage increase in real Gross Domestic Product (GDP). It indicates the overall health and expansion of an economy.

what is GDP?

Gross Domestic Product, the total value of all goods and services produced over a specific time period within a country's borders.

what is an example of something that deters economic growth?

decline in natural resources- less things available to use in the production process: less output

what encourages economic growth?

investment-spending on capital: fins will be able to spend more in the future

changes in technology- people get better tools to work with: increased productivity and efficiency

what encourages economic growth?

education and training-people become better educated means they can go into good jobs and be good at what they do: increased productivity

immigration- more people avaliable to work

government policies-investing in infrastructure increases economic growth because it boosts productivity and therefore output with better transportation

why is economic growth good?

raises living standards because there is more money to spend on public services 

creates jobs so people have more opportunities to earn money. -people also ear higher wages within jobs they alr have bcs there is a higher demand for labour

reduces inequality- people who are poor have more opportunities to become richer and increase their living standard and wealth. 

why is economic growth bad?

increases emissions and pollution because there is increases industrial activity and amplified waste generation.

may increase inequality- the benefits may be concentrated amongst the wealthy, such as technological advancements in things like health

increased use of resources- earth’s resources are finite and economic growth uses more of these resources faster. this unlimited wants and finite resources cycle could lead to  dangerous consequences