2.1 Measuring economic performance

Question 1

economic objectives

Answer 1

goals set by the government, achieved by using economic policy

Question 2

economic policies

Answer 2

tools used by governments to achieve economic objectives and improve economic performance

Question 3

economic growth

Answer 3

percentage change in gdp over a year

Question 4

national income

Answer 4

income for an economy over a period

Question 5

unemployment

Answer 5

seeking work but cant find unemployment

Question 6

budget

Answer 6

governments finances in gov spending and tax revenue

Question 7

distribution of income

Answer 7

how income is shared throughout an economy

Question 8

policy conflict

Answer 8

achieving one objective puts government further away from another

Question 9

trade-off

Answer 9

opportunity cost of moving further from one objective to get closer to another

Question 10

macroeconomic indicators

Answer 10

variables showing how well a government is achieving its objectives

Question 11

gross domestic product(GDP)

Answer 11

measure of national income showing value of output in a year

Question 12

productivity

Answer 12

quantity of output per labour or capital equipment

Question 13

balance of payments

Answer 13

financial record of transactions between uk and other countries

Question 14

current account

Answer 14

record of all goods and service trade and flows of income between countries

Question 15

baskets of good/services

Answer 15

a range of goods and services bought by the typical household

Question 16

weighted average

Answer 16

items that are bought more are given more “weight’ in the price indices

Question 17

shadow economy

Answer 17

value of trade not recorded

Question 18

non-marketed output

Answer 18

economic transactions without monetary payment

Question 19

purchasing power parity(PPP)

Answer 19

exchange rate that equates prices of goods in different countries