Economic growth
Cambridge IGCSE Economics (0455) · Unit 4: Government and the macroeconomy · 9 flashcards
Economic growth is topic 4.6 in the Cambridge IGCSE Economics (0455) syllabus , positioned in Unit 4 — Government and the macroeconomy , alongside Government role in economy, Macroeconomic aims and Fiscal policy. In one line: Economic growth is an increase in the real GDP of an economy over time. It is typically measured as the percentage change in real GDP, which adjusts for inflation, over a specific period (.
This topic is examined in Paper 1 (multiple-choice) and Paper 2 (structured questions, including data-response items).
The deck below contains 9 flashcards — 3 definitions, 3 key concepts and 3 application cards — covering the precise wording mark schemes reward. Use the 3 definition cards to lock down command-word answers (define, state), then move on to the concept and application cards to handle explain, describe and compare questions.
Economic growth and explain how it is typically measured
Economic growth is an increase in the real GDP of an economy over time. It is typically measured as the percentage change in real GDP, which adjusts for inflation, over a specific period (
Questions this Economic growth deck will help you answer
- › Distinguish between nominal GDP and real GDP. Why is real GDP a better measure of economic growth?
- › Explain two causes of economic growth.
- › How does economic growth potentially improve living standards?
- › Outline two potential negative consequences of rapid economic growth.
- › Explain how increased investment in education can lead to economic growth.
Define economic growth and explain how it is typically measured.
Economic growth is an increase in the real GDP of an economy over time. It is typically measured as the percentage change in real GDP, which adjusts for inflation, over a specific period (
Distinguish between nominal GDP and real GDP. Why is real GDP a better measure of economic growth?
Nominal GDP measures the value of goods and services produced at current prices, while real GDP adjusts for inflation. Real GDP is a better measure because it reflects the actual increase in the quantity of goods and services produced, not just price changes.
Explain two causes of economic growth.
Economic growth can be caused by an increase in the quantity or quality of factors of production.
How does economic growth potentially improve living standards?
Economic growth can improve living standards by increasing average incomes, allowing consumers to purchase more goods and services. It can also lead to increased government revenue, which can be used to fund better healthcare, education, and infrastructure.
Outline two potential negative consequences of rapid economic growth.
Rapid economic growth can lead to increased pollution and environmental degradation due to increased production and consumption. It can also exacerbate income inequality if the benefits of growth are not distributed evenly across the population.
What is meant by 'sustainable' economic growth?
Sustainable economic growth is growth that meets the needs of the present without compromising the ability of future generations to meet their own needs. This involves balancing economic development with environmental protection and social equity.
Explain how increased investment in education can lead to economic growth.
Increased investment in education leads to a more skilled and productive workforce. A more skilled workforce can produce higher quality goods and services more efficiently, leading to increased output and economic growth.
Discuss how technological advancements can contribute to economic growth.
Technological advancements lead to innovation and increased efficiency in production processes. This allows firms to produce more goods and services with the same amount of resources, or the same amount of goods and services with fewer resources, leading to increased output and economic growth.
Define Gross Domestic Product (GDP).
GDP is the total value of all final goods and services produced within a country's borders during a specific period, typically a year. It is a primary indicator used to gauge the size and health of a country's economy.
Key Questions: Economic growth
Define economic growth and explain how it is typically measured.
Economic growth is an increase in the real GDP of an economy over time. It is typically measured as the percentage change in real GDP, which adjusts for inflation, over a specific period (
What is meant by 'sustainable' economic growth?
Sustainable economic growth is growth that meets the needs of the present without compromising the ability of future generations to meet their own needs. This involves balancing economic development with environmental protection and social equity.
Define Gross Domestic Product (GDP).
GDP is the total value of all final goods and services produced within a country's borders during a specific period, typically a year. It is a primary indicator used to gauge the size and health of a country's economy.
More topics in Unit 4 — Government and the macroeconomy
Economic growth sits alongside these Economics decks in the same syllabus unit. Each uses the same spaced-repetition system, so progress in one informs the next.
Cambridge syllabus keywords to use in your answers
These are the official Cambridge 0455 terms tagged to this section. Mark schemes credit responses that use the exact term — weave them into your answers verbatim rather than paraphrasing.
Key terms covered in this Economic growth deck
Every term below is defined in the flashcards above. Use the list as a quick recall test before your exam — if you can't define one of these in your own words, flip back to that card.
How to study this Economic growth deck
Start in Study Mode, attempt each card before flipping, then rate Hard, Okay or Easy. Cards you rate Hard come back within a day; cards you rate Easy push out to weeks. Your progress is saved in your browser, so come back daily for 5–10 minute reviews until every card reads Mastered.
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