2.5.4 Impact of Economic Growth

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  • Created by: 13clarken
  • Created on: 18-04-19 09:52
Benefits to ... : Incomes rise, People will save money, Increased job confidence, Increased spending on durables, More employment opportunities and Wages rise- so firms hold onto their staff
Consumers
1 of 10
Benefits to ... : Increased revenues and profits, Increased confidence to invest and they take on more workers
Firms
2 of 10
Benefits to the ... : More tax revenue, More VAT, more capital gains and corporation tax and there is lower unemployment benefits
Government
3 of 10
Benefits to current and future ... : As incomes rise people will feel better off, Poverty rates will fall and firms may use cleaner technology (as they can afford to)
Living Standards
4 of 10
Costs of Economic growth: The unwaged and unskilled people are less likely to benefit (but wealth could trickle down)
Income Inequality
5 of 10
Costs of Economic growth: Depletion of natural resources and external costs e.g. carbon emissions. But with governments extra income, they could use it to clean up and enforce carbon controls
Environmental Problems
6 of 10
Costs of Economic growth: ... problem on the current account: Higher income will **** in more imports, however if growth is export-led, the current account would improve
Balance of Payments
7 of 10
Costs of Economic growth: ... in the economy: At high income and demand there will be little spare capacity in the economy, so the price of labour and fuel rises
Bottlenecks
8 of 10
Costs of Economic growth: ... dislocation and stress: Not everyone will have increased income, which could cause increased debt for some as they try to keep up with society
Social
9 of 10
Costs of Economic growth: Problems with ... : ... causes spikes in prices, which could mean bad planning or cutting corners as people don't expect the economy to grow at that rate
Rapid growth
10 of 10

Other cards in this set

Card 2

Front

Benefits to ... : Increased revenues and profits, Increased confidence to invest and they take on more workers

Back

Firms

Card 3

Front

Benefits to the ... : More tax revenue, More VAT, more capital gains and corporation tax and there is lower unemployment benefits

Back

Preview of the front of card 3

Card 4

Front

Benefits to current and future ... : As incomes rise people will feel better off, Poverty rates will fall and firms may use cleaner technology (as they can afford to)

Back

Preview of the front of card 4

Card 5

Front

Costs of Economic growth: The unwaged and unskilled people are less likely to benefit (but wealth could trickle down)

Back

Preview of the front of card 5
View more cards

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