10.4 Economic Growth & Impacts (DP IB Environmental Systems & Societies (ESS): HL): Flashcards
0Still learning
Know0
- FrontEconomic Growth
Define economic growth.
Was this flashcard helpful?
Cards in this collection (26)
Define economic growth.
Economic growth is the increase in the total market value of goods and services produced within a country over a given time period.
Economic growth is usually measured as the percentage change in each year.
Economic growth is usually measured as the percentage change in GDP each year.
Define gross domestic product (GDP).
Gross domestic product (GDP) is the monetary value of all goods and services produced within a country's borders over a given time period.
What does an increase in GDP indicate about a country's economy?
An increase in GDP indicates that a country's economic activity and productivity have increased.
What are the two main approaches to measuring GDP?
The two main approaches to measuring GDP are the expenditure approach and the income approach.
The income approach to measuring GDP adds up all the received in the economy, such as wages, rent, interest, and profits.
The income approach to measuring GDP adds up all the income received in the economy, such as wages, rent, interest, and profits.
Define per capita GDP.
Per capita GDP is the GDP divided by the population, representing the average income per person in a country.
Why is per capita GDP useful for comparing living standards between countries?
Per capita GDP provides a more accurate assessment of living standards and makes it easier to compare standards of living between countries.
A high per capita GDP does not guarantee equality, as it does not account for in income distribution.
A high per capita GDP does not guarantee equality, as it does not account for inequalities in income distribution.
How is the rate of economic growth commonly measured?
The rate of economic growth is commonly measured by the percentage change in GDP and per capita GDP from one year to the next.
What does a negative rate of GDP growth indicate?
A negative rate of GDP growth indicates economic contraction, meaning the country's economy is shrinking.
What is the circular flow model in economics?
The circular flow model is a simplified representation of the flow of goods, services, and money between households and firms within an economy.
A externality occurs when the cost of production or consumption is passed on to society or the environment.
A negative externality occurs when the cost of production or consumption is passed on to society or the environment.
Define eco-economic decoupling.
Eco-economic decoupling is the concept of separating economic growth from environmental degradation, meaning it is possible to achieve prosperity without harming the environment.
What is absolute decoupling in the context of economic growth and the environment?
Absolute decoupling is the theoretical situation where indefinite economic growth occurs with zero increase in environmental degradation.
Which two main types of decoupling exist in relation to economic growth and the environment?
The two main types are absolute decoupling and relative decoupling.
In , economic growth is accompanied by a reduction in the rate of environmental degradation, but not its complete elimination.
In relative decoupling, economic growth is accompanied by a reduction in the rate of environmental degradation, but not its complete elimination.
Give one example of a technological advancement that could contribute to eco-economic decoupling.
One example is the development of renewable energy technologies such as solar panels and wind turbines, which enable cleaner energy production and reduce reliance on fossil fuels.
True or False?
Absolute decoupling has been achieved on a global scale.
False.
Absolute decoupling on a global scale remains a seemingly impossible task given current technological and economic realities.
The idea that continuous economic growth is limited by the of natural resources is known as resource constraints.
The idea that continuous economic growth is limited by the finite nature of natural resources is known as resource constraints.
How does the circular economy help achieve eco-economic decoupling?
The circular economy promotes resource efficiency, recycling, and waste reduction, helping to decouple economic growth from resource depletion and environmental harm.
Define environmental impacts of economic growth.
Environmental impacts of economic growth are the effects on natural resources and ecosystems caused by expanding economies, which can be both positive and negative.
What are two positive environmental impacts of economic growth?
Two positive impacts are advancements in technology and increased investment in environmental protection measures.
Economic growth can lead to the of natural habitats as land is cleared for development.
Economic growth can lead to the loss of natural habitats as land is cleared for development.
How can economic growth negatively affect vulnerable communities?
Economic growth can lead to environmental degradation and pollution that disproportionately impact marginalised communities, causing environmental injustice and threatening livelihoods.
True or False?
Renewable energy transitions can help decouple economic growth from environmental degradation.
True.
Transitioning to renewable energy sources, such as wind or solar power, enables economic growth with reduced carbon emissions and less environmental harm.
Sign up to unlock flashcards
or