22.2 Economic growth and Australia's economy

What does economic growth mean?

• A decrease in the number of businesses

• An increase in the size of a country's economy

• More people working longer hours

• A rise in international trade only

Which of the following is used to measure economic growth?

• The number of new businesses opened

• Unemployment rates

• Gross Domestic Product (GDP)

• Prices of goods

What does GDP stand for?

• Gross Daily Profit

• General Domestic Price

• Government Department of Planning

• Gross Domestic Product

What is one limitation of using GDP to measure economic growth?

• It is too easy to calculate

• It does not count government spending

• It ignores non-material living standards

• It only includes small businesses

Why is high economic growth generally seen as good?

• It makes imports cheaper

• It reduces the need for banks

• It can lead to higher employment and income

• It prevents inflation

What is one reason a country might want to increase economic growth?

• To increase taxes only

• To reduce business competition

• To improve living standards

• To make its currency weaker

Which of the following is a material living standard?

• Access to clean air

• Time spent with family

• Income level

• Level of happiness

Which of the following is a non-material living standard?

• Number of cars owned

• Access to education

• Freedom of speech

• Average household income

What is one way governments try to grow the economy?

• Decrease infrastructure spending

• Increase interest rates during a crisis

• Fund large construction projects

• Reduce population growth

What does the term 'standard of living' refer to?

• The amount of taxes paid

• The quality of roads and traffic

• The level of wealth, comfort, and material goods

• The size of government offices