Macro: Economic growth-GDP Flashcards
Define human capital
Personal attributes considered useful in production processes
What ‘equation’ shows the nature of the circular economy?
OUTPUT=INCOME=EXPENDITURE
What is the expenditure method?
-GDP= Consumption of goods and services+ Gross Investment+ Government Purchases + Net Exports ( exports-imports)
-GDP=C+I+G+(X-M)
What is the income method?
GDP= Wages+ Rental rate on Capital + Firm Profits
What is the Production/Output method?
Final value of all goods and services- Intermediate cost
What does GDP not measure?
-Shadow economy
-Sale of used goods
-The sale of financial assets ( stocks, bonds, etc)
Define GDP per capita?
Total GDP/ size of population
Define Nominal GDP.
The market value of the final production of goods and services within a country in a given period evaluated at current market prices
Define real GDP.
The market value of the final production of goods and services within a country in a given period adjusted for inflation for a price changes that may have occurred over time.
Define green GDP
The measure of GDP that takes into account any environment costs incurred from the production of the goods and services included in real GDP figures
What is the equation for green GDP?
green GDP= GDP- environmental costs of production
What are the environmental costs of production which are accounted for in green GDP?
Cost to/in:
-Health
-Agriculture
-Industrial costs caused by air pollution and water pollution
