Economic growth

What is most likely to lead to economic growth?

May/June 2015

Between 2012 and 2013, European economies saw low economic growth. Using the table data for GDP, industrial production and unemployment, which economy had the poorest performance?

May/June 2015

From 2005 to 2012, Peru and Panama recorded the quickest economic growth rates in the Americas. The two countries are different in both population size and the scale of their economies. In 2013, Peru had a population of 30 million and a Gross Domestic Product (GDP) of US$340 billion. By comparison, Panama had a population of 3.6 million and a GDP of US$60 billion. Life expectancy was greater in Panama, with the average person living three years longer than in Peru. From 2008 to 2013, Peru’s average yearly inflation rate was $2.7\%$. One reason for this was the Central Bank of Peru carefully managing the country’s interest rate and exchange rate. Panama has no central bank and recorded a different average yearly inflation rate (see Fig. 1). From 2008 to 2013, the unemployment rate declined more in Panama than in Peru. The drop in Panama’s unemployment rate was mainly the result of construction on a seven-year scheme to expand the Panama Canal. Panama’s lower unemployment rate was one factor behind its lower poverty level than Peru in 2013. Peru had a trade in goods surplus whereas Panama had a trade in goods deficit. Both countries export gold and fish and import oil and cars. For both countries, the USA, China and Japan are major trading partners. Roughly $75\%$ of workers in Peru are employed in the service (tertiary) sector, compared with $80\%$ in Panama. Panama’s important service industries include insurance and banking. It has the biggest insurance market in Central America. The number of firms in the market, including multinational companies, is rising. This is increasing competition in the market. Multinational companies also operate in the country’s banking sector. It has several private sector commercial banks. It does not have a central bank and, as a result, there is no direct government control of its banking sector. In recent years, the average size of the commercial banks has increased. There is some argument over whether larger banks are good for their customers.

May/June 2015

What should occur when a country undergoes economic growth?

May/June 2016

Why might the figure worked out for a developing country’s Gross Domestic Product be inaccurate?

May/June 2016

Which sign would most clearly show that an economic boom has begun?

May/June 2016

A newspaper said that a country’s economy expanded by $3\%$ over the previous year. What must have gone up in that year?

May/June 2017

A newspaper stated that a country’s economy expanded by $3\%$ over the previous year. What had to rise during that year?

May/June 2017

How large was the change in GDP per head, after allowing for price rises (real change), between $2000$ and $2013$?

May/June 2017

An economy goes through negative economic growth over two quarters in succession. What is this economy experiencing?

May/June 2018

Business investment spending declined in the third quarter of $2015$. What would probably happen as a result?

May/June 2018

The table presents the quarterly change in Gross Domestic Product (GDP) for four countries. Quarterly percentage change in GDP: A: $-6.0,\;1.0,\;-2.0,\;1.0$ B: $0.0,\;-1.0,\;0.0,\;-0.1$ C: $0.1,\;0.1,\;0.1,\;-3.0$ D: $1.0,\;1.0,\;-0.5,\;-0.5$ Which country has been in recession?

May/June 2018

Business investment expenditure decreased in the third quarter of 2015. What is the most likely consequence of this?

May/June 2018

Economic growth may be described as

May/June 2021

Economic growth may be defined as

May/June 2021

What is one likely reason for economic growth?

May/June 2022

What does the term economic growth mean?

May/June 2022

The table gives real GDP in US$ billion for a country across a three-year period. What does the GDP data show for the country from year 1 to year 3?

May/June 2023

Background: In what ways might oil transform Guyana? Guyana fact file (2020) In 2020, Guyana recorded the quickest economic growth worldwide. For a long period, sugar, gold and timber have made up a fairly large share of the nation’s output and exports. During 2020, the sugar industry was affected by adverse weather and weakening worldwide demand, whereas gold and timber output rose. The chief reason for the sharp rise in Guyana’s real GDP was higher oil production. A foreign multinational company (MNC) discovered offshore oil in 2015, and production began in 2019. It is forecast that by 2025 Guyana will be the world’s biggest oil producer per head. The Guyanese government plans to direct some of the tax revenue it expects from oil into education and upgrades to the country’s infrastructure. Planned schemes include fresh railway lines and stations. A larger and less expensive rail network may allow more people to work further from home and could affect the market for substitutes, such as car transport. The Guyanese government also intends to use some of the tax revenue to improve the country’s internet access. Table 1.1 presents GDP per head and internet access in seven countries in 2020. Guyana’s population size has risen only slowly in recent years. In 2020, its birth rate was $16.5$, its death rate was $6.8$ and its net migration rate was $-7.7$. As oil production expands, emigration may fall and the country may begin to record net immigration. A larger population could affect Guyana in several ways, including altering the size of its labour force and influencing the environment.

May/June 2023

Subsistence farming means producing crops and rearing livestock only to satisfy one’s own needs, with no excess left for trade. Why would it be hard for a government to assess economic growth in an economy that relies on subsistence farming?

May/June 2024

Which change is most likely to lead to more rapid economic growth in the short run?

May/June 2024

Which policy decision is most likely to lead to economic growth?

May/June 2025

A company that supplies water spent $470\text{ million}$ building a system of pipes to distribute water more efficiently. It used local workers and improved the local economy. It also gave the tourist industry better facilities. What cannot be concluded from the information above?

Oct/Nov 2015

Germany’s GDP growth was forecast to be $1.5\%$ in 2013. What could lead to economic growth?

Oct/Nov 2015

A large economy has a high rate of GDP growth. Which of the following is least likely to result from this growth?

Oct/Nov 2015

The table presents the growth rate of output $(\%)$ for four sectors of an economy. Which two sectors recorded a rise in the growth rate during the first half of $2014$?

Oct/Nov 2016

The table presents some economic indicators. Which rise in the first indicator is most likely to cause a rise in the second indicator?

Oct/Nov 2016

Economic growth is usually assessed by the yearly change in

Oct/Nov 2018

At what point is a recession considered to occur?

Oct/Nov 2018

A government employs a blend of fiscal policy measures and supply-side policy measures to boost growth in the economy. Which mix of policy measures would bring this about?

Oct/Nov 2019

Country X supplies computers to support teachers in the classroom. How could this technology raise the economic potential of country X?

Oct/Nov 2019

What is the most probable outcome of a continued rise in Gross Domestic Product (GDP)?

Oct/Nov 2019

In $2015$, the Malaysian government announced objectives to raise productivity and savings. Consumer spending has increased, partly because higher wages have been earned mainly by older workers. Even so, low savings levels remain a concern. Savings supply funds for investment (spending on capital goods), helping economic growth and affecting inflation.

Oct/Nov 2019

What impact does economic growth have on people and on the economy?

Oct/Nov 2021

What economic condition is present when negative economic growth continues for two successive quarters (six months)?

Oct/Nov 2021

Which labour-market change in an economy encourages economic growth?

Oct/Nov 2021

The diagram illustrates a country’s economic growth rate across a $5$-year period. What conclusion can be drawn from the diagram?

Oct/Nov 2022

A person chooses to hire a professional decorator instead of purchasing the materials and decorating her house on her own. Why would this choice lead GDP to increase?

Oct/Nov 2022

A country wants to promote economic growth. Which policy measure is most likely to achieve this aim?

Oct/Nov 2022

How is a country’s Gross Domestic Product usually measured?

Oct/Nov 2022

Botswana combines capital goods and labour in its diamond mining industry. From 2015 to 2019, its average economic growth rate was $3.8\%$, compared with a world average of $2.8\%$. During this period, inflation remained low and the economy shifted away from protectionism towards free international trade.

Oct/Nov 2023

Which factor will lead to an increase in real GDP in a country?

Oct/Nov 2024

How is economic growth defined?

Oct/Nov 2024

What are the effects of economic growth on individuals and on the economy?

Oct/Nov 2024

Read the source material carefully before you answer Question 1. Background material: The Belarus economy Belarus, which has a mixed economy, was among the poorest countries in Europe during the 1990s. Since that time, GDP per head has risen and poverty has fallen. The country has also seen an increase in life expectancy. Table 1.1 presents life expectancy and Human Development Index (HDI) value for six chosen countries in 2019. From 2011 to 2021, the price level in Belarus rose. Higher energy prices increased firms’ production costs in both the public sector and the private sector. Over the same period, investment in Belarus increased, the size of the country’s labour force decreased, and fewer students went on to university. Belarus makes a variety of products. Milk is one agricultural product produced there. The country is the fifth largest producer of milk in the world. The Belarus government is unwilling to subsidise milk production, although it has given large loans to mechanise the dairy industry. The Belarus government wants to promote the production and purchase of electric vehicles. It intends to construct 1300 electric vehicle charging stations by 2030. Using electric vehicles can bring environmental benefits. However, some other types of transport may offer greater benefits, and some people and firms may be unwilling to change to electric vehicles. A less popular government policy introduced in 2015 was a law that fined anyone who had been unemployed for six months or more. Anyone who failed to pay the amount owed to the government for breaking the law was jailed. If suitable jobs were available, this may have lowered frictional unemployment. However, some unemployment may have been structural or cyclical. The law was abolished in 2018.

Oct/Nov 2024

During one specific year, South Sudan's population growth stood at $1.3\%$ and its GDP growth was $2\%$. What is the most probable consequence of this?

Oct/Nov 2025

In what way is a country’s economic growth measured?

Oct/Nov 2025

In 2023, Canada’s Prime Minister stated that his country’s goal was to raise immigration to half a million each year. This was because the country was facing labour shortages and longer life expectancy. Having more workers in Canada would lift the tax revenue available for pensions, and extra workers would also boost consumer spending. A rise in the immigration of both skilled and unskilled workers could influence the country’s car industry.

Oct/Nov 2025