• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Discuss how the far economic growth is good for, people, government, firms and the environment.

Extracts from this document...


Discuss how the far economic growth is good for, people, government, firms and the environment. An economic growth is an increase in the economy's real income in the short run and the long run. Short run means that increase in spending cases the Aggregate demand to shift to the right. In the long run, increase in the output can continue to be achieved if the productive capacities of the economy increase. There are many costs and benefits of economic growth. However there are more advantages in the economic growth than disadvantages, for this reason many governments prefer economic growth. ...read more.


This will case the living standard to fall. For this reason many economists measure real GDP per head. Another advantage to economic growth is that house holds will have more money to consume on the products and services. On the other hand it will encourage purchase of cars, demanding for more air travel and road expansions; all this will create more pollution, road conjunction and waste dumping due to increase in demand. The disadvantages of economic growth are that people may have to work longer and under pressure because of the increase in demand for products. ...read more.


Government should interfere and reduce goods and services that cases negative externalities and encourage goods and services with positive externality by subsidising them. Firms also benefits from economic growth as the demand increases the firms have to produce more goods and services to balance the increase in demand. Moreover, rapid increase in demand will over heat the economy, the effect is that the inflation will raise. Economic growth can effect environment as it suffers from heavy industrial growth as it produce pollution. It will also destroy natural land beauty and non renewable resources. Higher outputs will case more environmental problems and cleaning up the environment can be expensive. ?? ?? ?? ?? Vivek Santhirababu 1 | Page ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level UK, European & Global Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level UK, European & Global Economics essays

  1. Free essay

    does uk housing market warrant government intervention

    This is not available to people who live in the north. The housing quality in the south is of a higher standard, this is an effect of Margret Thatcher's buy to let scheme. This involved the building and selling of many council properties and since these were subsequently privately owned

  2. Why has GDP growth been so slow in Somalia?

    any - price support for primary products and a great deal of protectionism from the West; the West was united in the belief that the world economy did not need restructuring. International debt in the Third World rose fifteen times, from approximately $100billion to just over $1450billion from 1970 to

  1. In what ways is the government attempting to increase the willingness to wor

    action in nearly every industry and in the long-term significant improvement in the industrial relations in the UK. Increased Spending on Education and Training Investment in education has the potential to raise the total stock of skills within the work force and improve the employment prospects of thousands of unemployed workers.

  2. International economic relations

    incorporated it more consistently with the remainder of his work than was the case with any of the earlier or contemporary writers. He included the influence of exchange-rate fluctuations on commodity trade in the mechanism as an additional equilibrating factor.

  1. Generalized role of a purchase manager

    More than 800 firms, located in cities like Bangalore, Hyderabad, Pune, Chennai, and New Delhi provided a range of software services, mostly targeted at foreign customers. The United States accounted for nearly 60 percent of Indian software exports, followed by Europe with 23.5 percent and Japan with just 3.5 percent.

  2. Economic Growth HSC Notes

    * Balance of Payments/External Stability : o As a result of increased economic growth there is increased consumer and business spending ? higher levels of imports o Most of the disposable income of consumers is spends on imported goods and services.

  1. Managing Environment - A report on investing in Ghana.

    These investments however, are not made without risks. According to Games (2003), there are still many overarching problems and trends that apply to the continent. These include: * Low levels of development and insufficient investment in people; * Political and fiscal risk; * A weak private sector coupled with a strong government presence in the economy; * High

  2. Chinese Economic Reform

    Deng took advantage of this economic crisis to discredit Hua and aim for leadership of the party. "Reform policies became Deng's platform against Hua for post-Mao leadership" (Shirk 36). Given this history of economic reform, it is evident that "under the present system economic questions are necessarily political questions" (Dorn 43).

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work