Economic growth Flashcards
(15 cards)
What is economic growth?
Economic growth is the increase in the production of goods and services in an economy over time.
True or False: Economic growth is measured by the increase in real GDP.
True
Fill in the blank: Economic growth can be expressed as a percentage increase in ______.
GDP
What are the two main types of economic growth?
Extensive growth and intensive growth.
Which factor is NOT a determinant of economic growth?
Natural disasters.
Multiple Choice: Which of the following is a common indicator of economic growth? A) Unemployment rate B) Inflation rate C) Real GDP D) Interest rate
C) Real GDP
What role does technology play in economic growth?
Technology increases efficiency and productivity, leading to higher output.
True or False: High levels of investment can lead to economic growth.
True
Short Answer: Name one policy that can promote economic growth.
Tax incentives.
Fill in the blank: The ______ curve illustrates the relationship between economic output and the factors of production.
production
What is the relationship between economic growth and living standards?
Economic growth generally leads to improved living standards.
Multiple Choice: Which of the following is a potential negative effect of rapid economic growth? A) Environmental degradation B) Increased employment C) Higher wages D) Better technology
A) Environmental degradation
True or False: Economic growth can occur without an increase in population.
True
What is the significance of the Human Development Index (HDI) in relation to economic growth?
The HDI measures a country’s social and economic development, including health and education, not just economic output.
Short Answer: What is a common challenge faced by developing countries in achieving economic growth?
Lack of infrastructure.
