T12 - 4

Question 1

Define:

Economic growth

Answer 1

Economic growth:

An increase in the level of economic output over time.

Question 2

What would happen if an economy of a country did not grow?

Answer 2

• The unemployed people will not be able to find work in the formal sector.
• Income levels drop.
• Tax collection drops.
• Social services will need to be reduced because the government will have less money.

Question 3

Name 5 strategies that will stimulate economic growth.

Answer 3

1. Promoting entrepreneurship.
2. Encouraging existing businesses to ecpand.
3. Improving business management.
4. Encouraging investors from other countries to invest money in local businesses.
5. Ensuring better management of resources.

Question 4

Name 3 results of economic growth.

Answer 4

1. There are more goods or services to choose from.
2. Employment levels rise.
3. Income levels increase.