Economic growth is important because expansion in the output of goods and services
A) necessarily creates more jobs (more work for people).
B) makes it possible for individuals to consume more and achieve higher living standards.
C) leads to an increase in the general level of prices.
D) generates additional tax revenues for the government.

Question

Quizplus · Accepted Answer

Economic growth increases the output of goods and services, which can lead to a rise in the standard of living as individuals can consume more. However, economic growth does not necessarily create more jobs (choice A), and may lead to inflation if resources are strained (choice C). While economic growth can generate additional tax revenues for the government (choice D), this is not the primary reason why economic growth is important.

Economic Growth Is Important Because Expansion in the Output of Goods