kt2 Flashcards
Unemployment
(U/E)
The number of people of working age who· are seeking
work yet do not have· a paid job
Additional Information:
U/E rate is = total unemployed I workforce ….. where
workforce = U/E + employed = economically active = all
those either in work or looking for work
Population of
Working Age
(PWA)
In UK: males and females 16-65 (i.e. school leaving age
to retirement age)
Additional Information:
Approximate figures for UK (2010): total population = 61 m
(12m under 16, PWA = 38m, 11 m over 65)
Workforce
All those of working age either in paid jobs or seeking
them
Additional Information:
Workforce = labour force = economically active
Economically
Inactive
Those of working age who have chosen not to do paid
work or look for paid work
Additional Information:
Includes: houseworkers, students (over 17), early retired
Economically
Active
Those either looking for work or in work
Additional Information:
Economic activity rate = economically active/ population
of working age (= participation rate)
Balance of
Payments (BoP)
A record of the transactions between residents of one
country and those living abroad over a year
Information:
Split into current and financial (formerly ‘capital’) accounts;
these sum to zero i.e. balance overall
Balance of
Payments
Current Account
The net inflow of money to a country arising from
International trade in goods & services, investment
income & transfers
Additional Information:
A deficit means more money leaving a country (e.g. from
import spending) than entering it (e.g. from export
earnings); vice versa for a surplus
Investment
Income
Earnings from ownership of assets
Additional Information:
Includes: interest from savings deposits or
lending/borrowing, profits from companies and dividends
from shares (‘I.P.D.’); is measured in the BoP current
account, where inflows of such earnings from owning
assets abroad count as[+] credit items (offset by outflows
abroad: [-] debits)
*Purchasing
Power Parity
(PPP)
The nominal exchange rate which ensures home
produced goods cost the same if brought abroad
Additional Information:
i.e. Big Mac costing £3 in UK and $6 in US would imply
PPP exchange rate of £1 = $2 since £3 buys a Big Mac in
UK and US (after being converted into$); PPP exchange
rates are arguably the most appropriate for making
international comparisons of living standards
*Standard of Living
A measure of the material well-being of a person
Additional Information:
Linked to the flow of goods and services (including
leisure) a person can afford to consume; no generally
accepted measure(: weighted average of GDP, wealth
and leisure per capita)
*Quality of Life
A measure of the overall well-being of a person
Additional Information:
An attempt to broaden living standard to inc_ lude ‘non
material’ aspects like political rights, educational and
cultural opportunities
