Cost and benefits of growth

• What is a major macroeconomic objective discussed in the material?

  Growth
• What are the two sides of economic growth mentioned in the material?

  Benefits and issues
• What is one of the biggest benefits of economic growth for households?

  Higher disposable income
• Why might firms translate higher profits into higher wages and salaries?

  To attract and retain workers
• How can existing workers earn higher salaries during economic growth?

  Through promotions and increased productivity
• What types of living standards can improve due to higher incomes?

  Material and non-material living standards
• What are examples of non-material living standards mentioned?

  Access to education, health, and public transport
• What significant impact can economic growth have in developing countries?

  Alleviation of absolute poverty
• What is a natural consequence of economic growth regarding employment?

  Higher employment levels
• Why does economic growth lead to higher demand for goods and services?

  Because firms need to produce more output
• What does the term "derived demand" refer to in the context of labor?

  Labor demand is driven by the demand for goods and services
• How do firms benefit from economic growth?

  They make higher profits
• What is the accelerator effect in economics?

  Growth triggers more investment, leading to further growth
• What is a fiscal dividend?

  An increase in tax revenues due to higher incomes
• How do higher household incomes affect government tax revenues?

  They increase tax revenues from various sources
• What can the government fund with increased tax revenues?

  Education, infrastructure, welfare, and public sector wages
• What is one major side effect of rampant economic growth?

  Higher demand-pull inflation
• What happens when actual growth exceeds potential growth?

  A positive output gap occurs
• How does demand-pull inflation affect purchasing power?

  It erodes purchasing power
• What can lead to higher income inequality during economic growth?

  Uneven distribution of income across the economy
• How can growth from a dominant sector affect income distribution?

  It can concentrate high incomes in that sector
• What is the impact of capital-intensive production on income distribution?

  Higher incomes may be contained to capital owners
• How does urban growth affect income distribution compared to rural growth?

  It can create an income divide between urban and rural areas
• What can happen if jobs created from economic growth are of poor quality?

  It can lead to an income divide
• What role does income redistribution policy play in economic growth?

  It helps reduce income divides
• What environmental issues can arise from uncontrolled economic growth?

  Air pollution, deforestation, and resource depletion
• What is one major environmental consequence of palm oil production?

  Deforestation
• What happens when waste is dumped into natural resources?

  It causes resource degradation
• What is the welfare loss associated with environmental destruction due to growth?

  People could be worse off despite growth
• How can economic growth lead to a current account deficit?

  By increasing imports as household incomes rise
• What is the key objective for sustainable growth?

  Growth without inflation and environmental destruction
• What does inclusive growth mean?

  Growth that benefits everyone, not just a few
• What is balanced growth?

  Growth from multiple sources to ensure sustainability
• What role does the private sector play in sustainable growth?

  To invest and look after the environment
• What is the government's role in ensuring sustainable growth?

  To use tax revenues correctly and implement supply-side policies
• What is necessary for achieving the ideal kind of growth?

  Collaboration between the private and public sectors
• What should be considered when judging the quality of economic growth?

  The balance of benefits and costs associated with growth
• What is the overall message of the video regarding economic growth?

  To weigh the benefits and costs of growth carefully