NAME:

Economics 1

Chapter 2 Economic Growth and Sustainable

Development
2.5
1. Explain what is meant by the goal of full employment.

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2. Explain what is meant by cyclical unemployment.

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3. Clearly explain how economic growth can lead to higher employment.

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4. Clearly explain how economic growth can lead to an increase in personal
incomes.

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NAME:

Economics 1

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5. What is meant by external/international trade?

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6. Distinguish between a trade surplus and a trade deficit.

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7. Explain how economic growth can improve our international trading
position.

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8. Explain what is meant by the goal of low inflation.

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9. Distinguish between demand inflation and cost inflation.

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NAME:

Economics 1

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10.

Clearly explain how economic growth can help slow cost inflation.

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11.
Clearly explain how economic growth can improve material living
standards.

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12.
Clearly explain how economic growth can improve non-material
living standards.

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NAME:

Economics 1

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Glossary Terms

Goal of full employment

Cyclical unemployment
Purchasing power
International trade
Trade balance

Goal of low inflation

Efficiency
Cost inflation
Demand inflation