2.1.1 Economic growth Flashcards
Big Mac Index
A way of measuring purchasing power parity (PPP) between different countries.
Compares the US dollar price of a Big Mac across countries to assess how under/overvalued the local currency is against the US dollar
BRICS economies
Brazil
Russia
India
China
South Africa
the rise of emerging markets. have a bigger share of world trade than USA
Constant prices
tell us that the data has been inflation adjusted
Economic cycle
variations in the annual rate growth of GDP over time characterized by periods of growth (expansions), followed by periods of contraction (recessions).
Economic development
Long run improvements of things such as income per capita, education and poverty
Economic growth
an increase in the real value of goods and services produced as measured by the annual % change in real GDP.
Also, a long run increase in a countries productive capacity.
Economic shocks
An unexpected or an unpredictable event that affects the economy
Economic stability
Not many fluctuations in the economic cycle
Emerging markets
Term used to describe the financial markets of developing countries
Full capacity output
Level of GDP where all available factor inputs are fully employed
Globalisation
A process in which countries have become increasingly integrated and interdependent
Gross national income (GNI)
The total amount of money earned by a nations people and businesses, both inside and outside the countries region borders
Green GDP
A popular term for environmentally adjusted gross domestic product
Gross Domestic Product (GDP)
measures the total value of national output of goods and services produced in a given period (usually a year or quarter of a year)
GDP per capita
National income per head of population
Human development index
a summary measure of average achievement in key dimensions of human development in terms of:
•literacy
•Life expectancy
•PPP – real GDP per capita
Infrastructure
The transport links, communications networks, sewage systems, energy plants and other facilities essential for the efficient functioning of a country and its economy. They often involve the production of public goods or the production process
Infrastructure
The transport links, communications networks, sewage systems, energy plants and other facilities essential for the efficient functioning of a country and its economy. They often involve the production of public goods or the production process
Lagging indicators
Indicators which tend to follow economic cycles E.G.unemployment
Leading indicators
indicators which predict future economic trends E.G. consumer confidence
Macroeconomic performance
how well a country is doing in reaching important objectives or key targets of government policy measured by changes and output, investment, prices, jobs, trade and living standards and also the distribution of income and wealth
Manufacturing
it is one of the production industries concerned with using raw materials from the primary sectors, such as iron and coke and the production of finished goods, such as cars which are then sold in the tertiary industry
National happiness
Measuring economic success based on societies general satisfaction with life rather than their financial satisfaction
National income
The total income earned by all factors of production in an economy
