2.1 Measures Of Economic Performance Flashcards
What is economic growth?
The rate of change of output. It is an increase in the long term productive potential of the country.
How is economic growth measured?
Percentage change in real GDP over one year
What is GDP ?
Gross domestic products. It is the total value of goods and services. Measure of output which allows us to compare countries.
How can GDP per capita grow?
If national output grows faster than population over a given time period.
What is meant by real and nominal output / GDP ?
Real output strips out the effects of inflation whilst nominal output is out put with effects of inflation
What is GNI?
Gross national income is the value of goods and services produced domestically and net incomes overseas
What is GNP?
Gross national product is the value of goods and services over a period of time through labour or property supplied by citizens of a country both domestically and overseas
What is PPP?
Purchasing Power Parities is an exchange rate of one currency for another which compares the costs of how much a typical basket of goods in one country to another
What is the level of employment?
Number of people in work
What is unemployment?
People actively seeking work but not empolyed
What does the labour force consist of?
Those actively working and those unemployed
What does economically inactive mean?
16-65 not working/seeking
What are the measures of unemployment?
The international labour organisation
Claimant count
How does ILO measure unemployment?
Survey sent to a random sample of 60000 of Uk households to aged 16-65
Respondents self determine if they are unemployed based on ILO criteria
What is ILO criteria?
Ready to work within the next 2 weeks
Have actively looked for work in the past one month
