The impact of growth on individuals, the economy and the environment
Economic growth raises living standards and tax revenues, but it also creates costs. Faster growth can damage the environment and widen inequality between people.
Real World
Norway's sovereign wealth fund channels oil-driven GDP growth into future public services, reducing inequality over time — whereas Indonesia's rapid palm-oil growth cleared rainforest at record rates, showing that identical GDP figures can have vastly different environmental outcomes.
Exam Focus
Structure your answer across all three levels (individual, economy, environment) and make a justified judgement on which impact is most significant.
Price Elasticity of Demand
PED = % change in quantity demanded ÷ % change in price
How well did you know this?