Economic data

Question 1

What do economists use data for?

Answer 1

• As evidence
• To test predictions made my models
• To develop policy advice

Question 2

What is GDP?

Answer 2

Value of the total goods & services produced by a country.

Question 3

Name the 5 sources of data

Answer 3

1) Estimates of GDP (GDP)
2) Balance of payments
3) Consumer price index
4) Labour force survey
5) Interest rates

Question 4

What do ‘balance of payments’ tell us about?

Answer 4

Competitiveness in International markets, supply & demand of the currency.

Question 5

Define reliability

Answer 5

Similar to accuracy - is the figure dependable?

Question 6

Define validity

Answer 6

Measures what it purports to

Question 7

What is a NOMINAL VALUE?

Answer 7

Any value adjusted for inflation - expressed at current prices, (if prices rise nominal value rises)

Question 8

What are REAL VALUES?

Answer 8

Hold prices constant, ignoring inflation
(If a company produces 10 cars over a month at £15,000 each, value of those goods is £150,000, irrespective of a change in prices).

Question 9

Define Nominal GDP

Answer 9

Not adjusted for inflation/deflation. Calculated at current market prices.

Question 10

Define Real GDP

Answer 10

Adjusted for inflation/deflation (market price changes).