The costs and benefits of economic growth
Economic growth raises living standards and creates jobs, but it can also cause inflation, inequality, and environmental damage. The balance between these gains and harms depends on how fast and how sustainably an economy grows.
Real World
China's rapid GDP growth lifted over 800 million people out of poverty since 1978, but also made it the world's largest CO₂ emitter — illustrating how growth's benefits (higher living standards) and costs (environmental degradation) can coexist.
Exam Focus
For 'evaluate' questions, weigh benefits against costs using qualifiers like rate of growth, income distribution, and sustainability to access top marks.
Price Elasticity of Demand
PED = % change in quantity demanded ÷ % change in price
How well did you know this?