Global Economic Performance and International Trade Flashcards
1
Q
What is a consumer Surplus?
A
- Measures the benefit buyers recieve from participating in a market.
- When price decreases consumer surplus increases
2
Q
Producer Surplus
A
- Measure of benefits sellers recieve from participating in a market
3
Q
GDP(Gross Domestic Production)
A
The market value of all final goods and services produced
4
Q
What is net export?
A
- Goods export - goods imports
- Makes up -4% of GDP
5
Q
What are the 4 main concepts of GDP?
A
- Consumption
- Government Purchases
- Investment
- Net Exports
6
Q
Consumption
A
- Spending by household on goods and services
- Makes up 70% of a nations GDP
7
Q
Investment
A
- Makes up 14% of all GDP
- capital equipment, inventories, and structures, including household purchases of new housing
8
Q
Real vs Nominal GDP
A
- Real GDP - production of goods and services valued at consumption.
- Nominal GDP - production of goods and services valued at current prices.
9
Q
Government Purchases
A
- Make up 20% of GDP
