Economic Growth: Causes & Remedies

<p>Because it reflects the overall economic activity in a country. (D)</p> Signup and view all the answers

<p>All of the above. (D)</p> Signup and view all the answers

<p>All of the above. (D)</p> Signup and view all the answers

<p>The Income Approach focuses on the income earned by factors of production, while the Expenditure Approach focuses on the spending on final goods and services. (D)</p> Signup and view all the answers

<p>All of the above. (D)</p> Signup and view all the answers

<p>Government Spending (A)</p> Signup and view all the answers

<p>Lower economic growth rate (A)</p> Signup and view all the answers

<p>Affordability of better education (B)</p> Signup and view all the answers

<p>It is positively correlated with various quality of life indicators. (C)</p> Signup and view all the answers

<p>Leisure time (D)</p> Signup and view all the answers

<p>Sum of all final expenditures (B)</p> Signup and view all the answers

<p>Household purchases of durable goods (C)</p> Signup and view all the answers

<p>Nominal GDP is calculated using current prices, while real GDP uses constant prices (C)</p> Signup and view all the answers

<p>Household consumption of new furniture (A)</p> Signup and view all the answers

<p>Compensation of employees (B)</p> Signup and view all the answers

<p>Exports - Imports (C)</p> Signup and view all the answers

<p>A payment from the government to individuals without exchange of goods or services (A)</p> Signup and view all the answers

<p>Income from self-employment and rental income (D)</p> Signup and view all the answers

<p>They faced increased competition from online retailers. (A)</p> Signup and view all the answers

<p>Poundland (D)</p> Signup and view all the answers

<p>Government regulation (C)</p> Signup and view all the answers

<p>Investing in physical capital (C)</p> Signup and view all the answers

<p>Changing demand patterns (C)</p> Signup and view all the answers

<p>They impact firms in ways that may be beyond their control. (A)</p> Signup and view all the answers

<p>Higher output and increased consumption. (B)</p> Signup and view all the answers

<p>Shift in consumer demand from inferior products. (A)</p> Signup and view all the answers

<p>Decrease in output and demand resulting in lower profits. (A)</p> Signup and view all the answers

<p>Inferior products. (B)</p> Signup and view all the answers

<p>Some retailers have thrived while others faced closures. (C)</p> Signup and view all the answers

<p>Firms with initially small profits may incur larger losses and go out of business. (A)</p> Signup and view all the answers

<p>Shifts in consumer preferences towards different goods. (D)</p> Signup and view all the answers

<p>The average income per person in a country (D)</p> Signup and view all the answers

<p>Economic growth can include both booms and recessions. (D)</p> Signup and view all the answers

<p>Fluctuations in the exchange rate (C)</p> Signup and view all the answers

<p>Less developed countries achieving higher growth rates (C)</p> Signup and view all the answers

<p>They often experience more severe recessions. (D)</p> Signup and view all the answers

<p>Around 10% (B)</p> Signup and view all the answers

<p>Inflation and deflation of prices (A)</p> Signup and view all the answers

<p>Sub-Saharan Africa (A)</p> Signup and view all the answers

<p>2009 (A)</p> Signup and view all the answers

<p>Real GDP (C)</p> Signup and view all the answers

<p>They can maintain higher growth rates over time. (D)</p> Signup and view all the answers

<p>Inflation (C)</p> Signup and view all the answers

<p>Nominal GDP uses current prices, while real GDP uses constant prices. (D)</p> Signup and view all the answers

The overall well-being and economic health of consumers based on their purchasing of goods/services.

The total value of goods and services produced in a country during a specific time using available resources.

GDP can be measured via income, expenditure, or value added by producers.

A method of measuring GDP that counts income from wages, rents, and profits generated by production.

A method of measuring GDP that sums up all expenditures on final goods and services.

When assessing GDP growth, consider factors like inflation and population changes.

The level of wealth, comfort, and material goods available to a certain socioeconomic class or geographic area.

The total production of goods and services in an economy, equal to both income and expenditure measures.

GDP measures total final expenditures: GDP = C + I + G + (X-M).

GDP consists of Consumption (C), Investment (I), Government spending (G), and Net exports (X-M).

Expenditure by households on durable goods, non-durable goods, and services.

Purchase of machinery, equipment, buildings, and inventory changes by businesses.

Value of production measured at current prices for goods and services.

Value of production adjusted for inflation, measured at constant prices.

GDP measured as total income firms pay households for production factors.

Payments made without a good or service being exchanged, like unemployment benefits.

Production at home that does not involve market transactions.

Economic activity hidden from the government to avoid taxes or that is illegal.

Time spent away from work that can lower economic growth rates.

The state of the environment that is not reflected in GDP but affects living standards.

Aspects like leisure, environmental quality, and informal economy are not valued in GDP measurement.

Markets that are experiencing a decrease in demand and sales.

Recessions can create winners and losers in retail, affecting demand patterns.

An increase in the number of people available for work contributing to economic growth.

Improvements in the efficiency of labor, often driven by capital or technology increases.

Economic growth explained by capital accumulation, labor division, and comparative advantage.

The increase in a country's output of goods and services over time.

A period of rapid economic growth and increasing incomes.

A period of economic decline where incomes fall.

GDP measured without adjusting for inflation or price changes.

GDP adjusted for inflation, reflecting true economic output per person.

The percentage change in real GDP over time, indicating economic health.

Countries with advanced industrial sectors and higher income levels.

Countries with less industrialization and lower per capita income.

Key takeaways from visual data on economies over years.

China's real GDP growth rate was around 10% for recent years.

India's growth rate hovers around 5% annually in recent years.

The process where developing countries increase their GDP towards that of developed countries.

Changes in currency exchange rates affect GDP measurements in nominal terms.

Nominal GDP represented using US currency for comparison purposes.

Large-scale economic factors that influence all firms but are out of their control.

A period of significant economic growth characterized by increased output and demand.

Growing economies generally lead to higher income and greater demand for products.

Products whose demand decreases as consumer income rises, often lower-quality items.

In recessions, some businesses thrive while others fail due to changing demand.

Post-recession impacts on UK retailers explain why some succeeded while others failed.

As incomes rise, consumer preferences may shift away from certain products.