NAME:

Economics 1

Chapter 2 Economic Growth and Sustainable

Development
2.1 & 2.2
1. What is meant by living standards? Distinguish between material
(economic) living standards and non-material living standards, using
examples. (refer to figure 2.2 on page 59)

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2. Explain what is meant by economic growth.

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3. Explain the link between the rate of economic growth and productive
capacity. Use a diagram to illustrate your point.

4. Identify and explain the link between higher rates of economic growth
and material living standards.

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Please add words in BOLD to your glossary

NAME:

Economics 1

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5. Identify and explain the trade-off that exists between the pursuit of
material living standards and societies non-material wellbeing. Can this
trade-off be overcome? Explain.

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6. Define the term sustainable economic development.

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7. What is meant by chain volume (real) GDP? How is it determined?

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Please add words in BOLD to your glossary

NAME:

Economics 1

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8. Identify and briefly explain 5 limitations of the GDP as a measure of
economic national production and an indicator of living standards.

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9. What is meant by GDP per capita? How is this linked to material living
standards?

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Please add words in BOLD to your glossary

NAME:

Economics 1

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10.
What are negative externalities? Explain how global warming
could be considered a negative externality.

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Please add words in BOLD to your glossary