Question

Economic growth is not only beneficial to an economy but is also harmful to a certain degree. List FIVE (5) advantages and FIVE (5) costs of growth.

Answer 1

Five advantages of economic growth are -

1 - Improvement in the standard of living of people

2 - Lower level of unemployment in the economy

3 - Increased income and output level in the economy improving the overall condition of economy

4 - Economic growth helps to make the value of currency stronger in the international market.

5- Economic growth leads to rise in the status of Health , education and other infrastructure related to human development

Disadvantages of Economic growth are as follows -

1 - Increased economic growth may come with the greater level of income inequality in the country leading to greater income in hands of few.

2 - Economic growth often leads to inflationary conditions in the economy leading to fall in purchasing power of currency

3 - Higher economic growth may be coupled with higher imports leading to higher current account deficit.

4 - Economic growth may come at the cost of greater environmental concerns such as pollution.

5 - Greater economic growth does not guarantee the improvement in the quality of goods, or quality of life.