Real Estate Council of Alberta Fundamentals Practice Exam

What is one of the potential benefits of economic growth?

1. Reduction in employment opportunities

2. Improved technology and innovation

3. Depletion of natural resources

4. Increased inequality

The correct answer is: Improved technology and innovation

Economic growth often leads to improved technology and innovation, which are significant benefits for society. When an economy expands, businesses invest more in research and development to enhance their products and services, resulting in advancements that can lead to greater efficiency and productivity. This technological progress can also foster new industries and create higher-quality jobs, improving the overall standard of living. Additionally, innovation can address challenges such as environmental sustainability and healthcare, ultimately contributing to a more robust and dynamic economy. In contrast, options like reduction in employment opportunities, depletion of natural resources, and increased inequality reflect potential drawbacks or challenges that can accompany economic growth rather than benefits. For instance, while growth may initially generate more jobs, shifts in industry might lead to job losses in certain sectors. Similarly, economic expansion can sometimes result in overuse of resources or exacerbate wealth disparities if not managed equitably. Hence, while the complexities of growth may include negative aspects, improved technology and innovation are widely recognized as positive outcomes.