- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 10. Aggregate Output, Prices, and Economic Growth
- Subject 7. Economic Growth and Sustainability
CFA Practice Question
Economic growth means ______.
II. physical and human capital
III. technology gains
IV. availability of natural resources
I. a higher standard of living
II. physical and human capital
III. technology gains
IV. availability of natural resources
Correct Answer: I
Economic growth means more income and a higher standard of living. The other responses represent sources of economic growth.
User Contributed Comments 4
| User | Comment |
|---|---|
| u18jjm2010 | Economic Growth does not always lead to an increase in real GDP per person. This means that income and standard of living do not always increase during a period of economic growth. |
| Beret | Economic growth means increase in GDP, not always accompanied by increase in GDP/person. |
| ericczhang | I think most economists actually use the definitions of higher income and living standards as economic growth. I.e. most economists do not actually mistake GDP growth for economic growth. It's just that most people think they do. |
| choas69 | if economic growth was faster than the growth of the population then GDP per capita increases too |