economic growth and inequality

Question 1

economic incentives

Answer 1

choosing outcomes that improve your welfare and how does choices are shaped by market and policy.

Question 2

nominal gdp

Answer 2

measures in current currency amounts- doesn’t account for inflation

Question 3

purchasing power parity

Answer 3

important for measuring changes across countries and time.

Question 4

what does gdp measure?

Answer 4

market value of all finished goods within a country.

Question 5

finished good

Answer 5

will not be sold again as part of another good

Question 6

intermediate good

Answer 6

will be used to make something else that will be sold (egg in a cake)

Question 7

capital good

Answer 7

used to produce other goods but not a part of them (transportation)

Question 8

gdp formula

Answer 8

consumer spending + investment in capital goods + government spending on finished goods + (export - import)

Question 9

economic growth formula

Answer 9

% change in GDP = gdp 2020 - gpd 2019 / gdp 2019 x 100

Question 10

capitalism (3)

Answer 10

private property, markets, firms