5.1 Economic Factors

• A higher employment rate reduces poverty
• Economic stability improves quality of life through access to education
• A higher GDP results in better access to education, healthcare, and infrastructure.

  True
• Match the economic indicator with its impact on quality of life:

  Gross Domestic Product (GDP) ↔️ Indicates economic prosperity

  Employment Rate ↔️ Reduces poverty and improves living standards

  Poverty Rate ↔️ Limits access to essential resources

  Income Inequality ↔️ Creates social unrest and resentment
• What does GDP measure in a country?

  Goods and services value
• High income inequality can create social unrest.

  True
• What does a higher Gross Domestic Product (GDP) indicate about an economy?

  Economic prosperity
• High income inequality can create social unrest and limit opportunities for lower-income groups
• High income inequality can lead to reduced social mobility and a widening wealth gap.

  True
• A higher poverty rate can lead to lower educational attainment.


  True
• Order the relationship between economic indicators and quality of life.

  1️⃣ Higher GDP leads to economic prosperity

  2️⃣ Higher employment reduces poverty

  3️⃣ Lower poverty improves health outcomes

  4️⃣ High income equality promotes social cohesion
• A higher Gross Domestic Product (GDP) indicates economic prosperity, enabling better access to education, healthcare, and infrastructure.


  True
• What does low income inequality provide for citizens?

  Equal access to opportunities
• Higher Gross Domestic Product (GDP) typically indicates greater economic prosperity and improved quality of life.


  True
• A higher employment rate provides more people with stable incomes
• Higher employment provides more people with stable incomes, reducing poverty
• A higher employment rate reduces poverty and improves living standards.


  True
• Higher poverty rates limit access to essential resources
• Fiscal policy uses government spending and taxation to influence economic activity.
• What are economic factors defined as?

  Measurable aspects of economy
• Economic instability characterized by high unemployment and low GDP can lead to poorer health outcomes
• Order the steps governments can take to enhance quality of life through economic stability.

  1️⃣ Monitor key economic indicators

  2️⃣ Maintain economic stability

  3️⃣ Improve access to essential resources

  4️⃣ Enhance overall quality of life
• What is the definition of Gross Domestic Product (GDP)?

  Market value of goods and services
• How does a higher GDP impact the quality of life?

  Better access to education and healthcare
• Match the economic indicator with its impact on quality of life:

  Gross Domestic Product (GDP) ↔️ Enables better access to education and healthcare

  Employment Rate ↔️ Provides stable incomes and reduces poverty

  Poverty Rate ↔️ Limits access to essential resources
• What are the key indicators of a stable and prosperous economy according to the study material?

  Higher GDP, lower poverty
• High income inequality can undermine social stability and cohesion.

  True
• What other key economic indicators, besides GDP, impact quality of life?

  Employment rate, poverty rate
• What does a higher poverty rate indicate about quality of life?

  Limited access to resources
• Economic instability can lead to poorer health outcomes and educational attainment.


  True
• What is the impact of a higher poverty rate on quality of life?

  Lower health outcomes
• What does low income inequality promote in society?

  Social cohesion
• What is the definition of income inequality?

  Distribution of income across the population
• High income inequality creates social unrest and limits opportunities for lower-income groups.


  True
• What economic conditions characterize economic instability according to the study material?

  Low GDP, high unemployment
• Match the level of income inequality with its impact on quality of life:

  Low income inequality ↔️ Promotes social cohesion and stability

  High income inequality ↔️ Creates social unrest and resentment
• What does monetary policy control to influence inflation and investment?

  Money supply and interest rates