growing economies Flashcards
gdp is
gross domestic product
the market value of all the goods and services produced in a particular time period
gdp can be measured 3 ways
output measure
expenditure measure
income measure
output measure is
a way of measuring gdp
value of the goods and services produced by all sectors
expenditure measure is
a way of measuring gdp
value of goods and services purchased by households and government, investments and value of exports - imports
income measure is
a way of measuring gdp
value of income generated in terms of profits and wages
gdp is commonly used to measure
the growth of countries
emerging economies are
growing at fast rates
economy is progressing and becoming more advanced
e.g. china and india
bric stands for
Brazil russia india china (all at similar stages of economic development)
how to make GDP measures realistic
purchasing power parity (PPP)
ppp is
purchasing power parity
allows for differences in the cost of living
takes a standard shopping bag from each country and prices them
glocalisation is
where a business in a global market customises product or service to the locality or culture to sell more products
4 implications of economic growth on individuals
lower unemployment
higher average income
improved public services
investment (may improve roads or infrastructure)
foreign direct investment is
the transfer of funds by a foreign business to purchase and acquire physical capital
4 indicators of growth
gdp
gdp per capita
literact
health
gdp per capita is
gdp / number of people in the country
