5.4 Impact of Economic Growth

Question 1

Benefits of economic growth?

Answer 1

1) Higher living standards (real GNI per capita)
2) Employment effects
3) Higher govt finance

Question 2

Drawbacks of economic growth?

Answer 2

1) Inflation
2) Negative externalities (Kuznets curve)
3) Inequalities

Question 3

What is the Environmental Kuznets Curve?

Answer 3

Demonstrates that initially pollution surpasses income per capita but this reverses with higher income levels

Question 4

What is sustainable growth?

Answer 4

Growth that can meet current demands while also not sacrificing future demands