4. GDP & Economic Growth Flashcards
What does GDP stand for?
Gross Domestic Product
What does GDP mean?
The measurement of the monetary value of all good and services made in a country, usually over the period of a year.
What are the components of GDP? (5)
Consumption Expenditure Investment Expenditure Government Expenditure Import Expenditure Export Earnings
What is Consumption Expenditure?
Total spending on goods and services by individuals and households in an economy
What is Investment Expenditure?
The expenditure on Capital which is used to further production possibility
What is Government Expenditure?
The total consumption and investment of the government.
What are Export Earnings?
The value of all exports sold to foreign buyers
What is Import Expenditure?
The monetary value paid for all imports into the country
How do you calculate GDP?
GDP= C + I + G + (X-M) C= Consumption I= Investment G= Government Investment X= Exports M= Imports
What is Economic Growth?
An increase in the level of national output. It increases the long-term productive capacity of an economy
What would Economic Growth look like on a PPC?
The curve would shift outwards
What is Factor Endowment?
The quantity and quality of a country’s Factors of Production
What is the Labour Force?
All people within a country that are willing and able to work
What is Labour force mobility?
The extent workers are able to change jobs and are willing and able to move to where work is
What is Labour productivity?
The amounts of goods and service that workers will produce over a given period of time. Calculated by GDP/Workforce of country
