Basics Flashcards
1
Q
What does the term elastic mean?
A
When demand changes for a good or service
2
Q
What does the term Inelastic mean?
A
When demand remains constant regardless of economic changes.
3
Q
What does elasticity of demand measure? ( price elasticity of demand )
A
How demand responds to a change in price or income
4
Q
Economic growth
A
The rate of change of output. It is an increase in the long term productive potential of the country which means there’s an increase in the amount of goods and services that a country produces
5
Q
Gross domestic product
A
The total value of goods and services produced in a country within a year
6
Q
Total GDP
A
Represent the overall total of goods and services produced in the country
7
Q
GDP per capita
A
The total GDP divided by the number of people in a country
