ECONOMICS - IGCSE PEARSON
EDEXCEL (PAPER 2) EXAM 100%
ACCURATE
, Economic growth/GDP/Economic cycle definition... - ANSWERSEconomic growth: The
increase in the value of goods and services produced by an economy over time
GDP: The value of all the final goods and services in the economy
Economic cycle: Economic cycle refers to the overall state of the economy going
through four stages in a cyclical pattern (Boom, Downturn, Recession, and Recovery)
Limitations of GDP as a measure of growth: (6x) - ANSWERSInflation
Population changes
Statistical errors
The value of home produced goods
The hidden economy
GDP and living standards
Economic growth impact on:
- Employment
- Standards of living
- Poverty
- Inflation
- The envoirnment - ANSWERSEmployment: During economic growth business are
generating more output/need more workers/raises employment levels
Standards of living: Increase in GDP mean people have more income/Buy more goods
and services/Improve living conditions and health by eating healthier foods/Increase in
their standards of living
Poverty: During economic growth business are generating more output/need more
workers/raises employment levels/ Reduces poverty - OR - More spending allows
greater tax revenue for the government/Allows more investment into WellCare funds/
Reduces poverty
Inflation: Economy grows to fast and may overheat/ Demands exceeds supply/Prices
raise/ Increase in the level of inflation
The environment: As economies grow the consumption or need to produce increase/
More fossil fuels are needs to produce goods and services/ Environment worsens
Inflation and deflation definitions... - ANSWERSInflation: Rate at which prices rise, a
general and continuing rise in prices
EDEXCEL (PAPER 2) EXAM 100%
ACCURATE
, Economic growth/GDP/Economic cycle definition... - ANSWERSEconomic growth: The
increase in the value of goods and services produced by an economy over time
GDP: The value of all the final goods and services in the economy
Economic cycle: Economic cycle refers to the overall state of the economy going
through four stages in a cyclical pattern (Boom, Downturn, Recession, and Recovery)
Limitations of GDP as a measure of growth: (6x) - ANSWERSInflation
Population changes
Statistical errors
The value of home produced goods
The hidden economy
GDP and living standards
Economic growth impact on:
- Employment
- Standards of living
- Poverty
- Inflation
- The envoirnment - ANSWERSEmployment: During economic growth business are
generating more output/need more workers/raises employment levels
Standards of living: Increase in GDP mean people have more income/Buy more goods
and services/Improve living conditions and health by eating healthier foods/Increase in
their standards of living
Poverty: During economic growth business are generating more output/need more
workers/raises employment levels/ Reduces poverty - OR - More spending allows
greater tax revenue for the government/Allows more investment into WellCare funds/
Reduces poverty
Inflation: Economy grows to fast and may overheat/ Demands exceeds supply/Prices
raise/ Increase in the level of inflation
The environment: As economies grow the consumption or need to produce increase/
More fossil fuels are needs to produce goods and services/ Environment worsens
Inflation and deflation definitions... - ANSWERSInflation: Rate at which prices rise, a
general and continuing rise in prices
