Economic growth

• It is an increase in GDP, i.e. an increase in the quantity of goods and services produced

  in an economy from one year to the next.
• Outline one economic and one social impact of economic growth.

  Economic impact:

  1.More government current revenue as people are employed and paying taxes.

  2. Less government current expenditure as government no longer need to pay jobseekers benefit to people.

  
  

  Social impact:

  1. An increased standard of living as people have more money to spend on non-essential goods and services, e.g. holidays or eating out in restaurants.
  2. 2. A reduction in the level of poverty as people are able to find employment.
• State and explain two potential negative effects of economic growth on Irish society and/or the environment.

  • Inflation: With demand for goods and services increasing, prices may increase, which will

  lead to inflation.

  • Increased waste: Increased consumption can lead to more packaging and waste
• Rather be better off than worst off - rational behaviour
• How can economic growth impact an area 1.Increase in employment in the area.

  2. Improvement in the standard of living of those in the area. They are earning more and therefore have more disposable income to spend on

  goods/services.