macro key terms Flashcards
what is unemployment
when people are out of work but willing and able to work
what is unemployment
when people are out of work but willing and able to work
what is the labour force
all those who are currently economically active (willing and able to work) - the employed and unemployed
what does economically active mean
someone who is willing and able to work
what does economically inactive mean
someone who is not willing or unable to work
which groups are likely to be economically inactive
full-time students
carers/stay at home parents
prisoners
someone with significant disability - mental+physical
people who retire before 65
long/short term illness
maternity/paternity leave
how do you calculate the rate of unemployment
level of unemployed/labour force x100
what does employment mean
those aged 15 or over who report that they have worked in gainful employment for at least one hour in the previous week or who had a hi on but were absent from work during the reference week
what does unemployment mean
whose who are currently full able and willing to work but don’t have a job
what is meant by working population
all those ages 15-64 in the population - both economically active and inactive
what is meant by employment rate
the percentage of people employed out of the working age population
how do you calculate the employment rate
level of employment/working age population x 100
what is meant by term labour force participation rate
the percentage of people in the working age population who are economically active
how do you calculate labour force participation rate
economically active/working age population x 100
what sector is the primary sector
extraction of raw materials
what is the secondary sector
manufacture of raw materials into a product in factories using plant+machinery
what is the tertiary sector
the service sector where product and services are sold to the customer
what are some examples of a primary sector job
coal mining
oil mining
fishing
forestry
farming
what are some examples of secondary sector jobs
builders
car manufacturers
steel workers
what are some examples of tertiary sector jobs
retail stores
restaurants
cinema
banking
insurance
hairdresser
teacher
bus driver
doctor
what is gdp
gross domestic product
the market value of all FINISHED goods and services, produced within a country in a year
what are intermediate goods
goods that are used to make another finished product e.g. ingredients
what are capital goods
a finished good used to make other goods e.g. tractor
what is economic growth
the rate of growth of real nation income (GDP), it increases the countries output over time
when does recession occur
when there are 2 consecutive quarters of negative economic growth
what is a quarter
3 months of the year jan-march, apr-jun, jul-sept, oct-dec
what is nominal gdp
GDP at current prices
what is the truer picture
calculate real GDP (at constant prices) adjusted for inflation changes - so actual changes in output (volume) can be determined
how do you calculate real GDP
real GDP= (nominal gdp X price index of base year) / price index of current year
why can nominal gdp be misleading
because gdp may have risen because of prices increasing
