What is economic growth and why are growth rates so important? ...

[Zulu123]

What is economic growth and why are growth rates so important?
 
  What will be an ideal response?

Question 2

A point inside a production possibilities curve indicates
 
  A) resources are not being used efficiently.
  B) resources are being used very efficiently.
  C) opportunity costs are constant.
  D) an output combination that is unobtainable with the current resource and technology levels

[reelove4eva]

Answer to Question 1

Economic growth is measured by increases in per capita real Gross Domestic Product (GDP). Economic growth results in a higher standard of living, measured in production of new final goods and services, for the average member of society. Sustained small increases in the growth rate of per capita real Gross Domestic Product (GDP) can lead to large absolute increases in per capita real Gross Domestic Product (GDP) due to the power of annual growth compounding.

Answer to Question 2

A