Lesson 2 - Measuring Economic Performance

Question 1

What are the 4 sectors of the economic identity?

Answer 1

Firms
Households
Government
International sector

Question 2

How can you measure the economic performance of firms?

Answer 2

GDP
Tax (VAT, corporation)

Question 3

How can you measure the economic performance of households?

Answer 3

Income
Bills

Question 4

How can you measure the economic performance of the government?

Answer 4

Debt
GDP

Question 5

How can you measure the economic performance of the international sector?

Answer 5

Strength of currency
GDP in comparison

Question 6

What are the 6 key objectives of UK economic performance?

Answer 6

Price stability
Growth of real GDP
Falling unemployment/Rising employment
Higher avg. living standards
Stable balance of trade (Imports + Exports)
Fair distribution of income + wealth

Question 7

What are the 6 additional objectives of macroeconomic policy?

Answer 7

Balancing the budget + reducing national debt
Improve economic well-being
Better regional balance in UK economy
Improved access to public services
Improved competitiveness
Environmental sustainability