Year 12 Study work topic 2.1.1 worksheet 82 Growth and Development (1)
1. Missing words
Economic growth can be thought of as an increase in the productive ______of an economy. It can be represented by an ______shift in the PPF - an economy is capable of producing ______goods and services with the factors of production available. Economic growth can be defined as an increase in the ______GDP of an economy. GDP is defined as the total value of all goods and services produced in an economy over a given time period. The value of real GDP for an economy can fall as well as rise. When economic growth is negative for two consecutive quarters, an economy is said to suffer from a ______. Missing word; real, capacity, recession, more, outward
2. Data Response
‘With recession looming and unemployment rising, politicians and economists are trying to find ways of stimulating economic growth. But is growth a good thing? Does it have harmful consequences? Could we live without it, asks John Sloman.’ Source: www.bbc.co.uk 2008
2.1 What might be some of the benefits associated with economic growth to an economy? ______
______
______
2.2 List 3 potential disadvantages of economic growth. ______
______
2.3 How might economic growth differ from economic development? ______
______
3. Data Analysis
Country / Real GDP, $bn (2008) / Population, mn (2008) / Real GDP per capita, $ (2008)USA / 13,164 / 301.0
UK / 2,377 / 59.8
Japan / 4,368 / 128.2
China / 2,645 / 1,323.6
3.1 Which country has the biggest economy? Which country has the smallest economy? ______
______
3.2 Calculate values for the final column (real GDP per capita) by dividing real GDP by population for each economy. How does this influence your answers to 3.1? ______
3.3 Why is it important to account for population size when comparing GDP figures between economies?
______
We will mark this in your next macro lesson so make sure you have it with you!