Chapter 4 Flashcards
What are two major sources of international financial data?
The World Bank and the International Monetary Fund
What is a common basis for assessing economic development?
Calculating the gross national income, a total of all income generated by the residents of a nation.
What is a developing economy?
A classification for a lower-income nation that is less technically developed and has lower living standards.
What is a developed economy?
A classification for high income, industrialized nations with a high standard of living.
What is an emerging market economy?
An economy with per capita incomes in the low to middle range that is in transition towards a developed status.
What is gross domestic product?
A measure of an economy’s size based on the market value of goods and services produced within a nation
What is purchasing power parity?
A means of adjusting exchange rates for two currencies so the currencies have equal purchasing power.
What is disposable income?
After-tax personal income
What is discretionary income?
After-tax income that is left after essentials are bought.
