Let us examine the factors that conditioned this response, starting with the transformations wrought upon Japanese society by rapid economic growth, and moving on to further changes precipitated by the student uprising itself. D) Growth provides an economic environment favorable to education and self-fulfillment. For example, GDP counts all investment as positive, whether or not that investment turns out to be productive in the longer run. A. More opportunity for start-up businesses to find a market. A first argument is based on diminishing marginal returns. Double counting in the national income accounts will be avoided if GDP is computed by totaling all: Suppose the value of your home increases from $100,000 to $125,000. Wikibuy Review: A Free Tool That Saves You Time and Money, 15 Creative Ways to Save Money That Actually Work. Nepal’s growth has rebounded strongly following a good monsoon, reconstruction efforts after the 2015 earthquake and normalization of trade with India, says the Bank. Population Growth and Economic Development of a Country! India has sustained rapid growth of GDP for most of the last two decades leading to rising per capita incomes and a reduction in absolute poverty. Goals for more growth should specify more growth of what, and for what.". If economic growth does not at least keep pace with population increases, the individual benefits will be restricted. d. physical quality of life index. The two are not mutually exclusive. We reassess this paradox, analyzing multiple rich … What was the average annual economic growth rate between 1981 and 1988.00? If you live in a country that goes through years or even decades of being stagnant or declining economically, you do rejoice when the economy picks up. The lack of jobs in the East C. The cotton industry D. The government paid people to move into western towns. Rapid economic growth is essential for the survival of the developing countries in the present competitive world. Several arguments suggest that low-income countries might have an advantage in achieving greater worker productivity and economic growth in the future. a. capitalism. Which of the following is false? Economic growth might also not be socially desirable. In the early stages of sustained growth, government has often provided the incentives for entrepreneurship to take hold. Proponents of economic growth make all of the following arguments except: A) Growth is the basic means of improving living standards. Likewise, this may also mean a lot of negative things within the country. C) There is a direct relationship between a growing real GDP and rising pollution. A. Start studying Economic Growth Questions. B) Growth has resulted in resource degradation and pollution. Which of the following is a measure of economic growth that is most useful for comparing living standards? But GDP measures quantity, not quality. Goals for more growth should specify more growth of what, and for what." But when it found that including environmental costs would have reduced growth by at least a third, the attempt was quickly discontinued. New Delhi: India has the potential for “very rapid” economic growth over the next decade which will lift people out of poverty and allow the government to invest in health and education priorities in an “exciting way”, billionaire philanthropist and Microsoft co-founder Bill Gates has said. China’s rapid economic development is an aggregate outcome of the introduction of the reforms in phases since 1978. True, it drives down cost, which makes things that poor people previously couldn't afford suddenly attainable. The main causes of Economic growth are to do with land, labour, capital and entrepreneurship. 5. Removing barriers to rural–urban mobility may enable economic growth, but the economic benefits will be much larger with supportive policies, markets and infrastructure investments. Some economists and other critics believe there is an inherent environmental limit on growth when natural resources become limited, for example if industry uses too much oil. 2) One argument concerning economic growth made the following argument. B) It is easier to reduce poverty when the economy is growing than when it is not. a) Limiting growth will contribute to more income equality across nations. d. It's a message China and its leaders would do well to heed. Rising incomes allow people to buy more education medical care, and recreation Pro-growth c. The Earth has only finite amounts of natural resources Anti-growth d. Explain the counter arguments in favour of increasing the level of a country's GDP. So if a country pours resources into building pyramids, its GDP will rise sharply while they are under construction. They need to feel that they are doing better than others, and fast economic growth can take that away from them. We seem to be slowly going downhill. Economic growth often brings new jobs to an area, and this benefits everyone. This observation was confirmed in a major study by the Organization for Economic Co-operation and Development (OECD), The material in this section is based on Organization for Economic Co-operation and Development, The Sources of Economic Growth in OECD Countries, 2003. whose members are listed in Table 8.1 “Growing Disparities in Rates of Economic Growth.” This consideration is especially important for China. b. If a manufacturer finds a way to make products more widely available at a cheaper price, then the business can afford to open up new locations and provide employment. These are. This chapter sets out to examine the validity of this perception: is it true that environmental quality and c. The Earth has only finite amounts of natural resources. Economic Growth and Subjective Well-Being: Reassessing the Easterlin Paradox ABSTRACT The “Easterlin paradox” suggests that there is no link between a society’s economic development and its average level of happiness. Some forms of this argument even suggest that eventually the damage caused to these resources can itself become a limit on growth. "With a pace like that, how can their economies keep growing?" A recent edition of The South China Morning Post carried a feature expressing the point in a particularly enlightening fashion. Summarize the arguments for slowing down the rapid growth of GDP? The arguments of Jánossy fit particularly well into an augmented Solow framework, as formulated by Mankiw et al. arguments against growth. 69. This begs the question: what's so great about rapid growth anyway? This made the concept very popular in all the countries of the world even capitalistic free market economies like UK and USA have tended towards planning. But considering that pyramids, once complete, add nothing to the economy (except maybe generating tourist revenues four millennia later), it is difficult to claim that their construction furthers economic progress. Increases in capital goods, labor force, technology, and human capital can all contribute to economic growth. There are, however, positive and negative effects of economic growth and one of the negatives is the damage growth does to the environment. The discovery of valuable minerals B. The average world GDP growth is slightly under 3 percent, annually. The analysis links periods of slow and rapid growth to the timing of the three industrial revolutions (IR's), that is, IR #1 (steam, railroads) from 1750 to 1830; IR #2 (electricity, internal combustion engine, running water, indoor toilets, communications, entertainment, chemicals, petroleum) from 1870 to 1900; and IR #3 (computers, the web, mobile phones) from 1960 to present. Economic growth, cumulatively over at least a decade, has been the central factor in mortality rate decline in the US over the 20th century. Rapid economic growth results in pollution, global warming and other environmental problems c. Rapid economic growth is unsustainable due to the earth’s finite resources Ethiopia: 8.3 Percent There exists a strong positive association between average income (or wealth) and indicators of population health status, which is evident both across countries and within countries.1,2 Illustration 1depicts indicators of population health (life expectancy at birth, under-five mortality rates, and the prevalence of stunting), all in logs, against log Gross National Income (GNI) per capita. c. socialism. As of 2017, the following countries have made the top ten list of fastest growing economies; interestingly, they are all developing countries. C) There is a direct relationship between a growing real GDP and rising pollution. B) It is easier to reduce poverty when the economy is growing than when it is not. Initial Period of Rapid Growth . The higher rate of saving makes it easier for the developing countries to break ‘the vicious circle of poverty’ and to “take off into self-sustained growth” Answer: D. Economic development refers to a. Several arguments suggest that low-income countries might have an advantage in achieving greater worker productivity and economic growth in the future. Which of the following was a reason for the rapid growth of boom towns in the West during the late 1800s? India has sustained rapid growth of GDP for most of the last two decades leading to rising per capita incomes and a reduction in absolute poverty. That might sound like a dumb thing to ask, but the more you think about it, the more the question makes sense. In other words, the student rebellion can be viewed as a kind of mass reaction to rapid economic growth. high birth rates and rapid population growth in poor countries would divert scarce capital away from savings and investment, thereby placing a drag on economic development This view underpinned the major rise in international funding for family planning in the 1960s and 1970s, with the aim of reducing birth rates and hence rates of population growth. However, once the poor are able to buy everything that the middle class has, they are no longer considered poor. Although the country's leaders aren't building pyramids, they may be doing the modern equivalent: building hundreds of expensive airports, high-speed rail lines and glittering financial centres that can never hope to generate a return on the investment involved. I know so many unemployed people who would love to see economic growth right now in my town. India is the fourth-fastest-growing economy with 7.2% projected growth, thanks in part to a rise in exports and an increase in government spending . As Chapter 4 showed, in Europe, Japan, and North America economic growth has been accom-panied by moderate population growth, which C) Rapid growth is not sustainable in the long term due to resource limitations. Relationship between Population Growth and Economic Development: The relationship between population growth and economic development may be summarised in the words of Robert McNamara—the past president of the World Bank. Several arguments suggest that low-income countries might have an advantage in achieving greater worker productivity and economic growth in the future. We take a … In fact rapid population growth has been obstructing economic growth in developing countries like India where since 1951 population has been growing at a relatively high rate. The total consumption of materials and energy needs to be reduced, starting with developed countries. Growth means worker burnout and frantic schedules Anti-growth b. Firstly, higher GDP implies the economy is producing more goods… Which of the following are arguments against rapid economic growth? All production is regarded as positive, even if the pollution it causes reduces the productive capacity of the agricultural sector and pushes up health care costs. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Better pay for each job. It has been the standard measure of economic strength ever since. According to Geert Hofstede, which of the following is a key cultural dimension that helps account for rapid economic growth in Asia? 10 Countries Seeing Economic Growth. E) All of the above are arguments presented in this class. The main common characteristics of de­veloping countries and determinants of economic growth have remained under-developed or in other words, what have been the obstacles to their development and constraints on their economic growth. The Republic of Korea, one of the so-called "East Asian tigers", achieved extremely rapid economic growth and industrialization following the upheaval resulting from the Korean War (1950-1953). What's remarkable here is not that the Chinese tourists found Europe slow-moving - Americans have been saying the same for decades - but that their automatic assumption that fast growth is the best, indeed the only, measure of a country's economic success. 106. What's so great about rapid economic growth anyway? The main criticisms are that it may be environmentally unsustainable and that it may not reduce inequalities. A first argument is based on diminishing marginal returns. ADVERTISEMENTS: Rapid Population Growth as an Obstacle to Economic Growth! There is no doubt that resources are also fruitfully used under laissez faire policy, but these are exclusively induced by profit motive and self-interest. Increased output of particular goods also tends to mean lower production costs per unit, which makes goods more affordable. Growth at the Frontier 5 1.1 Modern Economic Growth 5 1.2 Growth Over the Very Long Run 7 2. I still think that economic growth overall is desirable. Question 2 Consistent with this argument, the states on the West Coast of the United States have seen rapid economic growth as has experienced rapid economic growth. Again, this is important for China. If you would prefer a pdf version of the original article, please follow the link below: Topic pack - Macroeconomics - introduction, 2.1 The level of overall economic activity (notes), Examining the three methods of calculating national income, Short term fluctuations and long term trends, 2.1 The level of overall economic activity (questions), Section 2.2 Aggregate demand and supply (notes), Section 2.2 Aggregate demand and supply (simulations and activities), 2.2 Aggregate Demand and Aggregate Supply (questions). The volatility of rapid economic growth as it departs from its major trend, has a very short-term effect (within a year) to increase mortality-partly owing to … Strictly speaking, though, economists usually define growth as changes in the capacity for output, even if actual output is lower. In simple words, one cannot expect a higher standard of living without the country having good economic growth as it is one of the factors behind the good standard of living. The idea of convergence in economics (also sometimes known as the catch-up effect) is the hypothesis that poorer economies' per capita incomes will tend to grow at faster rates than richer economies. Growth is usually measured by output, namely the total value of goods and services produced by an economy. Economic growth is usually a prime indicator of various factors within a country. Critics believe that unrestricted growth may widen inequalities, which could cause social unrest. One of the major arguments against fast growth of the economy is its sustainability. A) Generally speaking, higher levels of saving will lead to higher levels of investment and capital formation and, therefore, to greater economic growth. B) Economic growth rates tend to be higher in countries where the government enforces property rights. Following the initial work of Barro (1991), hundreds of separate studies – typically cross-sectional regressions – pursued the question of A few years ago, the State Environmental Protection Administration did try to factor pollution costs into the country's GDP figures. Watching cultures collide - even at second hand - is always illuminating. As of 2017, the following countries have made the top ten list of fastest growing economies; interestingly, they are all developing countries. Which of the following could not be considered a major economic system? I kind of get what the writer is saying here about the limit on what good economic growth can do for poor people. South China Morning Post (25 May 2011) by Tom Holland (reproduced here with permission of the author). For the princely sum of 14,500 yuan (HK$16,800), the magazine's Beijing correspondent joined 30 or so mainlanders for a gruelling 10day, five-country coach tour of Europe.
A) Sociological problems like poverty have not been solved by growth. A) Sociological problems like poverty have not been solved by growth. Identify following arguments about economic growth as being either anti-growth or pro-growth. b. communism. (1992), 224 European Review of Economic History ... rapid economic growth during the 1950s, especially in Japan and West Germany. The following arguments can be advanced in favour of economic growth. These projects add to GDP growth in the short term but do nothing to advance economic development. Another major benefit of fast economic growth is that it can help cope with rapidly expanding populations. "Only when you have diligent, hardworking people will the nation's economy grow. As Simon Kuznets, the US economist who originally developed the idea of gross domestic product, warned: "Distinctions must be kept in mind between quantity and quality of growth, between its costs and return, and between the short and the long run. To what extent do you agree with these arguments? Governments often try to increase the growth rate because it will have various advantages. At least in principle, governments can work to enable the benefits of agglomeration to be better achieved and the costs of congestion to be reduced. "That's the only way to keep the economy growing.". The rapid productivity growth experienced in 1995-2012: ... but we cannot better it anymore. a. 69. Growth and the Environment: The Sustainability of Economic Growth. There is an argument that economic and population growth can be linked: access to better quality food, health care and labor-saving devices can increase the chances of people being healthy enough to live longer and bring up children. I am concerned about natural resources like oil running out when the demand goes up. The Facts of Economic Growth C.I. The average world GDP growth is slightly under 3 percent, annually. More jobs for people who want one. The main causes of Economic growth are to do with land, labour, capital and entrepreneurship. That is, an increase in economic activity is seen as being inevitably bad for the environment, while environmental policy is regarded as imposing a drag on growth. Falsity of National Income Statistics - . D) Economic growth is not only desirable but also necessary. Select all that apply. The case against economic growth is often made using which of the following arguments? That's not to say China should immediately embrace a European lifestyle - heaven forbid - but it does mean that the country's economic development could be advanced considerably if only its government and people were to abandon their unhealthy fixation on the rapid growth of GDP. In the case of individuals this tends to have diminishing returns. China’s rapid economic growth has led to a substantial increase in bilateral commercial ties with the United States. An increase in the quality (not the quantity of a country's computers An Increase in the number of days people have for holidays A decrease in the number of extinct species within a country Fewer trees being cut down to make furniture None of the above would be … Per capita incomes (measured in US $) have doubled in 12 years; But India has one third of all the people in … Growth means worker burnout and frantic schedules. 10 Countries Seeing Economic Growth. 5. The main argument for fast economic growth is simply that the economy can produce more, which should in turn mean the population as a whole has a higher living standard. This growth was marked by the ability of the economy to absorb surplus agricultural labour, increase the productivity of farm labour and avoid a serious discrepancy between rural and urban incomes. A first argument is based on diminishing marginal returns. For example, raising the average education level o… the Chinese guide asks. These factors effect the economic growth as they are the four factors of production. De-growth strategy. As Simon Kuznets, the US economist who originally developed the idea of gross domestic product, warned: "Distinctions must be kept in mind between quantity and quality of growth, between its costs and return, and between the short and the long run. MCQs Economics of Growth and Development- Semester 3. GDP was developed in the US during the Great Depression, and came into its own during the second world-war as a measure of how many guns, ships and planes the US economy was able to produce. It may reflect improvement in quality of life or living standards, it may also mean more jobs and opportunities for young people. Economic growth plus changes in output distribution and economic structure. These factors effect the economic growth as they are the four factors of production. If they find a way to grow, they don't seem to care how it affects the environment.