An introduction to Economic growth

6 important questions on An introduction to Economic growth

Why do we use GDP at PPP in constant prices?

If a price goes up we cannot indicate the output of actual goods and services.

Why might a higher GDP not always be better?

Only a small part of the country may benefit form economic growth and economic growth may lead to environmental destruction such as water/air pollution.

What are the benefits of a higher GDP? (5)

- Higher consumption level
- Greater food security
- Longer lives
- Greater protection from diseases and environmental catastrophes
- chances of violence and war are smaller
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What is GWP, and how much does it rise per year?

Gross world production (devided by the world population, 2-3% per year.

How were the periods before and after start of the agriculture called?

- Before: Paleolithic era (paleo=old + lithic = stone)
- After: Neolithic era (neo=nieuw)

Why did the population rise after the start of the industrial revolution?

Increasing ability to grow food and feed the rising population (better seed varieties, better farming techniques, chemical fertilisers and machinery).

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