A first argument is based on diminishing marginal returns. b. In other words, the student rebellion can be viewed as a kind of mass reaction to rapid economic growth. 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. The uncomfortable truth to be faced by policy makers is the following: Economic growth is ecologically unsustainable. The discovery of valuable minerals B. The two are not mutually exclusive. The conclusion that rapid population growth has slowed development is by no means straightfor-ward or clearcut (see Box 5.1). Supporters of fast economic growth believe it helps poorer people by making goods and services more available at an increasingly affordable price. D) Growth provides an economic environment favorable to education and self-fulfillment. d. In other words, although it says a great deal about how much stuff you can churn out, it tells you very little about the state of your economic development. 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 Per capita incomes (measured in US $) have doubled in 12 years; But India has one third of all the people in the world living below the official global poverty line. A first argument is based on diminishing marginal returns. One of the major arguments against fast growth of the economy is its sustainability. Under certain condi-tions moderate population growth can be benefi-cial. 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. Data from 2010 was used for life expectancy and under-five mortality and the latest available observations for each cou… We seem to be slowly going downhill. Several arguments suggest that low-income countries might have an advantage in achieving greater worker productivity and economic growth in the future. a) Limiting growth will contribute to more income equality across nations. Which of the following could not be considered a major economic system? In the early stages of sustained growth, government has often provided the incentives for entrepreneurship to take hold. C) There is a direct relationship between a growing real GDP and rising pollution. But GDP measures quantity, not quality. The biggest advantage of economic growth is that it leads to higher standard of living of the citizens of the country as higher economic growth implies higher per capita income which in turn improves the standard of living of people of the country. (iv) The objective of economic growth takes into consideration the broader long-term perspective. Similarly, GDP fails to account for the costs of environmental damage. Critics believe that unrestricted growth may widen inequalities, which could cause social unrest. 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. 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 following are the various factors that led to the rapid growth in the economic development in China: In the initial phase, reforms were initiated in agriculture, foreign trade and investment sectors. 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. E) All of the above are arguments presented in this class. What Are the Characteristics of Modern Economic Growth? B) Economic growth rates tend to be higher in countries where the government enforces property rights. Learn vocabulary, terms, and more with flashcards, games, and other study tools. The two are not mutually exclusive. Because of this, economic growth tends to be viewed as a long-term change rather than simply the year-on-year variations up and down. 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. The ideology of economic growth has a long history which can be traced back at least to the mid-18th century when Adam Smith published his Wealth of Nations. A few years ago, the State Environmental Protection Administration did try to factor pollution costs into the country's GDP figures. These factors effect the economic growth as they are the four factors of production. C) Rapid growth is not sustainable in the long term due to resource limitations. a. 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. c. The Earth has only finite amounts of natural resources. For example, raising the average education level o… I kind of get what the writer is saying here about the limit on what good economic growth can do for poor people. 106. Explain the counter arguments in favour of increasing the level of a country's GDP. However, once the poor are able to buy everything that the middle class has, they are no longer considered poor. B) Growth has resulted in resource degradation and pollution. Increased output of particular goods also tends to mean lower production costs per … Section 6 will make a short discussion inspired from the preceding debates and then conclude. Again, this is important for China. The main criticisms are that it may be environmentally unsustainable and that it may not reduce inequalities. The lack of jobs in the East C. The cotton industry D. The government paid people to move into western towns. However, it is not until the last five decades that the pursuit of growth has been a dominant ideology across the world and most countries have realized rapid economic growth. We take a … Proponents of economic growth make all of the following arguments except: A) Growth is the basic means of improving living standards. Growth and the Environment: The Sustainability of Economic Growth. Inequality Higher rates of economic growth have often resulted in increased inequality because growth can benefit a … ADVERTISEMENTS: Rapid Population Growth as an Obstacle to Economic Growth! Hence if trade raises the rate of saving, it also promotes economic growth. Goals for more growth should specify more growth of what, and for what.". a) Limiting growth will contribute to more income equality across nations. 10 Countries Seeing Economic Growth. 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. 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. These are. Proponents of economic growth make all of the following arguments except: A) Growth is the basic means of improving living standards. The environment often suffers abuse at the hands of greedy companies. Growth means worker burnout and frantic schedules. Economic growth is an increase in the production of goods and services in an economy. 2) One argument concerning economic growth made the following argument. Economic growth - Economic growth - The role of government: The differences in rates of growth are often attributed to two factors: government and entrepreneurship. For example, GDP counts all investment as positive, whether or not that investment turns out to be productive in the longer run. This consideration is especially important for China. The main causes of Economic growth are to do with land, labour, capital and entrepreneurship. Economic growth - Economic growth - The role of government: The differences in rates of growth are often attributed to two factors: government and entrepreneurship. A first argument is based on diminishing marginal returns. "That's the only way to keep the economy growing.". 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.” However, Mlthus ‘ argument came under severe attack at the hands of Karl Marx and F. 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