MGTA01H3 Study Guide - Midterm Guide: Oligopoly
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MGTA01H3 Full Course Notes
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Document Summary
In a growing economy, more goods, and more new goods, are produced. This means that people should have enough of basic goods, and have new goods that they have not purchased before. As well, productivity should be rising, so people (workers especially) have more income to purchase the new goods. A growing economy also employs more people, which gives workers more income to purchase goods. People can therefore purchase more, and this tends to raise the standard of living. The government can then tax more, as people and businesses have more income. This means the government has more money to spend on social goods such as infrastructure (roads, hospitals, schools) and social programs to help those who cannot enjoy the benefits of working. A growing economy will have a more lively international trade, with imports from lower-cost jurisdictions giving consumers more to choose from. Exports also increase, which means money flowing into the country and a positive balance of payments.
