Lecture 2 A
2
GEE Lecture 2 - Tutorial Q (ANSWER GUIDE) Indicative content Definition of economic growth (increases in GDP) Difference between GDP and GNP - Gross Domestic Product (GDP) shows the value of the output produced within a country in a given time period. Gross National Product (GNP) is the market value of all products and produced in one year by labour and property supplied by the residents of a country. While GNP measures the output generated by a country’s enterprises (whether located domestically or abroad), GDP measures the total output produced within a country’s borders (whether produced by that country’s own local firms or by foreign firms). Calculation of GDP = C+I+G+X-M Discussion of each component of GDP and how they affect economic growth Pro economic growth o People prefer more goods and services rather than fewer. Provided economic growth outstrips population growth, it will lead to higher income per head and higher consumption. o Using the UK as an example, the ‘poorest’ families of today are better off than those of the 19 th century as a result of economic growth o Absolute poverty has been largely eliminated in the UK partly due to the welfare provisions which have been funded by the proceeds of economic growth o Health and living standards continue to improve o Life expectancy continues to increase as a result of better healthcare facilities Problems as a result of economic growth o Social costs of economic growth e.g. congestion, pollution - these may diminish the quality of life o Consumption of irreplaceable resources - and dangers associated with substitutes e.g. nuclear power o Change in lifestyles and attitudes - complacent, carefree and selfish attitudes towards life, reliance on the safety net of state benefits and welfare provision. o Growth may not be fairly distributed - wealth concentrated in the hands of a small percentage of the population
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Cross Cultural Leadership
Transcript of Lecture 2 A
GEE Lecture 2 - Tutorial Q (ANSWER GUIDE)
Indicative content
Definition of economic growth (increases in GDP) Difference between GDP and GNP - Gross Domestic Product (GDP) shows the value
of the output produced within a country in a given time period. Gross National Product (GNP) is the market value of all products and produced in one year by labour and property supplied by the residents of a country. While GNP measures the output generated by a country’s enterprises (whether located domestically or abroad), GDP measures the total output produced within a country’s borders (whether produced by that country’s own local firms or by foreign firms).
Calculation of GDP = C+I+G+X-M Discussion of each component of GDP and how they affect economic growth
Pro economic growth o People prefer more goods and services rather than fewer. Provided economic
growth outstrips population growth, it will lead to higher income per head and higher consumption.
o Using the UK as an example, the ‘poorest’ families of today are better off than those of the 19th century as a result of economic growth
o Absolute poverty has been largely eliminated in the UK partly due to the welfare provisions which have been funded by the proceeds of economic growth
o Health and living standards continue to improveo Life expectancy continues to increase as a result of better healthcare facilities
Problems as a result of economic growth o Social costs of economic growth e.g. congestion, pollution - these may
diminish the quality of lifeo Consumption of irreplaceable resources - and dangers associated with
substitutes e.g. nuclear powero Change in lifestyles and attitudes - complacent, carefree and selfish attitudes
towards life, reliance on the safety net of state benefits and welfare provision.o Growth may not be fairly distributed - wealth concentrated in the hands of a
small percentage of the population
Mark allocation:Max 5 marks: Student describes key issues and theories relating to economic growth and its associated pros and cons.
Max 10 marks: Student applies and/or explains key issues and theories relating to economic growth and its associated pros and cons.
Max 15marks: Student analyses the key issues and theories relating to economic growth and its associated pros and cons.
Max 25 marks: Student evaluates the key issues and theories relating to economic growth and its associated pros and cons.
