4.1.3 Consequences of Growth

• What is the sustained increase in a country's real GDP over time called?

  Economic growth
• Economic growth leads to higher employment rates because businesses expand and create new jobs.


  True
• What is a negative economic consequence of economic growth?

  Inflation
• Job displacement due to automation is a negative social consequence of economic growth
• Match the key term with its significance:

  Economic Growth ↔️ Higher standards of living

  Real GDP ↔️ Accurate measure of activity
• Reduced poverty is a positive economic effect of economic growth
• Economic inequality is a negative effect of economic growth.


  True
• Why does economic growth reduce unemployment?

  Creates new job opportunities
• What is the definition of economic growth?

  Sustained increase in real GDP
• Economic growth results in improved living standards
• Economic growth always reduces poverty.

  False
• How does economic growth enhance living standards?

  Raises incomes and provides goods
• Inflation is a negative consequence of economic growth
• What is the balanced growth approach?

  Promotes growth while mitigating adverse effects
• Real GDP measures economic output adjusted for inflation
• How does economic growth improve living standards?

  Greater access to goods
• Environmental awareness driven by economic growth leads to cleaner technologies.


  True
• Why is real GDP used to measure economic growth?

  Adjusts for inflation
• What public services can governments fund with increased tax revenue from economic growth?

  Education and healthcare
• What are two negative environmental consequences of economic growth?

  Increased pollution and resource depletion
• Economic growth leads to higher incomes and greater access to goods and services
• Technological advancements from economic growth increase productivity and competitiveness.

  True
• Economic growth leads to higher employment rates.

  True
• Match the consequence of economic growth with its effect:

  Higher Employment Rates ↔️ Reduced unemployment

  Increased Tax Revenue ↔️ Better funding for public services

  Improved Living Standards ↔️ Greater access to goods and services
• Increased pollution is a negative effect of economic growth
• Order the positive consequences of economic growth:

  1️⃣ Improved quality of life

  2️⃣ Reduced unemployment

  3️⃣ Increased household income

  4️⃣ Drives innovation and productivity
• Environmental damage is solely caused by economic growth.

  False
• The balanced growth approach aims to achieve sustainable development