Growth Flashcards

1️⃣ Familiarise yourself with the flashcards:

  • Look through all the flashcards to see what's on both sides.
  • Make sure you understand the information on each card. If something's unclear, click the link to the revision notes at the bottom of the page for more details.

2️⃣ Test yourself:

  • Look at the question or prompt on each card and try to remember the answer before flipping it over.
  • Check the answer and make a note of any cards you find challenging and need to go over more.

3️⃣ Consistently Review and Practice:

  • Use spaced repetition: spend more time on the cards you struggle with and go over them more often.
  • Regularly review all the flashcards to help you better understand and retain the information over time.

Note: We may include questions that have multiple correct answers. It's useful to remember specific examples to understand these concepts better.

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What is economic growth?

A rise in the amount of goods and services a country produces over time.

What does GDP stand for, and what does it measure?

Gross Domestic Product. It is the total value of goods and services made in a country in a year.

How is economic growth usually measured?

By the percentage change in real GDP over time.

What is real GDP?

GDP adjusted for inflation. It shows changes in actual output, not just prices.

What is the difference between nominal GDP and real GDP?

Nominal GDP uses today's prices. Real GDP removes price changes to show true growth.

How do you work out a growth rate from GDP?

Subtract the old real GDP from the new real GDP. Divide by the old real GDP and multiply by 100 to get a percent. Example: from £1,000bn to £1,050bn is 5%.

What is real GDP per capita, and why is it useful?

Real GDP divided by the number of people. It shows average output per person, so it helps compare living standards.

Name two causes of long-term economic growth.

For example, more investment in machines and buildings, and better education and training.

What is productivity, and how does it affect growth?

It is output per worker per hour. Higher productivity means more output with the same resources, so growth rises.

Give two benefits of economic growth.

Higher living standards and more tax revenue to fund public services.

Give two possible drawbacks of fast economic growth.

More pollution and using up natural resources. Prices may also rise faster.

What is sustainable economic growth?

Growth that meets today's needs without harming the environment or the ability of future people to meet their needs.