Economic Issues Flashcards
refers to the increase in the production of goods and services over a certain period of time
Economic Growth
measures the monetary value of final goods and services—that is, those that are bought by the final user—produced in a country in a given period of time (say a quarter or a year). It counts all of the output generated within the borders of a country.
Gross Domestic Product (GDP)
counts all the output of the residents of a country; an alternative concept of GDP
Gross National Product (GNP)
sums the “value-added” at each stage of production, where value-added is defined as total sales less the value of intermediate inputs into the production process
Production approach
adds up the value of purchases made by final users (For example, the consumption of food, televisions, and medical services by households; the investments in machinery by companies; and the purchases of goods and services by the government and foreigners.)
Expenditure approach
sums the incomes generated by production For example, the compensation employees receive and the operating surplus of companies (roughly sales less costs).
Income approach
This refers to the amount of goods and services produced in the country valued at constant prices.
Real GDP
Economic growth involves a step in which a the difference in the new and old ______ is computed first.
GDP
What year did the great depression start
1929
What economic problem happened in many parts of the world in 2020?
Recession
This accounts for the total value of production by the residents in a country
GNP
An approach to computing for GDP where the total sales less the value of intermediate inputs into the production process is being accounted.
Production/Value Added Approach
An approach to computing for GDP where consumption, investment, government spending and net exports are being added.
Expenditure Approach
It is the percentage change in the value of all of the goods and services produced in a nation during a specific period of time, as compared to an earlier period
Economic Growth Rate
Even before the pandemic, economic growth in the Philippines was usually driven by:
Private Consumption
A statistical tool that is used to adjust GDP from nominal to constant prices.
Price Deflator
Measures the change in a nation’s gross domestic product (GDP)
Economic Growth Rate
Three of the major concerns of macroeconomics
Output Growth, Inflation, Unemployment
2 Main Sources of Economic Growth
Increase in Resources, Increase in the productivity of existing resources
the rate of increase in prices over a given period of time; the overall increase in prices or the increase in the cost of living in a country
Inflation
The cost of this basket at a given time expressed relative to a base year
Consumer Price Index (CPI)
the percentage change in the CPI over a certain period
Consumer Price Inflation
focuses on the underlying and persistent trends in inflation by excluding prices set by the government and the more volatile prices of products, such as food and energy, most affected by seasonal factors or temporary supply conditions.
Core Consumer Inflation
Falling of Prices
Deflation
High Inflation
Hyperinflation
is the proportion of families/individuals with per capita income/expenditure less than the per capita poverty threshold to the total number of families/individuals.
Poverty Incidence
The proportion of families/individuals with per capita income/expenditure less than the per capita food threshold to the total number of families/ individuals
Subsistence Incidence
(T/F) The subsistence incidence in the country is higher that its poverty incidence.
False
The region which generates highest subsistence incidence in Philippines
ARMM
This is a specified peso amount considered to be the minimum level of resources necessary to meet the basic needs of a family unit.
Poverty Threshold
Other term for subsistence poor
Food Poor / Extremely Poor
Other term for food poverty line
Subsistence / Food Threshold
How many years of progress in the country have been erased due to COVID 19?
4 Years
s=(f/n) x 100
Subsistence Incidence
p = (q/n) x 100
Poverty Incidence
Refers to the number of individuals who are FOOD POOR
Magnitude of Food Poor
Refers to the number of individuals who are INCOME POOR
Magnitude of Poor
Food Threshold / (FE/TBE Ratio)
Poverty Threshold
GDP2 - GDP 1 / GDP 1
Economic Growth Rate