Definitions - Basic

Question 1

Define Economic Growth in relation to Nominal GDP.

Answer 1

An increase in the value if goods and services produced in the country over a certain period of time.

Question 2

Define Economic Growth in relation to Real GDP.

Answer 2

An increase in the level of production in the country over a period of time

Question 3

Give another definition of Economic Growth.

Answer 3

An increase in the productive capacity of the country over a period of time.
OR
An increase in the net social welfare of the country over a period of time.

Question 4

Give another definition of Economic Growth.

Answer 4

An increase in the productive capacity of the country over a period of time.
OR
An increase in the net social welfare of the country over a period of time.

Question 5

Define the term “GDP”

Answer 5

Gross Domestic Product

Question 6

What is the definition of “Gross Domestic Product.”

Answer 6

Gross Domestic Product is the value of all goods and services produced within a country in a year.

Question 7

Define “Nominal GDP.”

Answer 7

The value of goods and services produced in a year.

Question 8

Define “Real GDP.”

Answer 8

Adjusted Nominal GDP for changes in the price level. Real GDP shows if actual production has increased.

Question 9

Define “Real GDP.”

Answer 9

Adjusted Nominal GDP for changes in the price level. Real GDP shows if actual production has increased.

Question 10

What questions are going to be on the Economic Growth-Mock Exam?

Answer 10

• Production Posibility Fronteir Graph (PPF).
• Circular Flow Diagrams.
• AD/AS Model Shift.
• Limiations of real GDP as a measure of growth.
  -Alternate Measures.