macro key terms

Question 1

what is unemployment

Answer 1

when people are out of work but willing and able to work

Question 2

what is unemployment

Answer 2

when people are out of work but willing and able to work

Question 3

what is the labour force

Answer 3

all those who are currently economically active (willing and able to work) - the employed and unemployed

Question 4

what does economically active mean

Answer 4

someone who is willing and able to work

Question 5

what does economically inactive mean

Answer 5

someone who is not willing or unable to work

Question 6

which groups are likely to be economically inactive

Answer 6

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

Question 7

how do you calculate the rate of unemployment

Answer 7

level of unemployed/labour force x100

Question 8

what does employment mean

Answer 8

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

Question 9

what does unemployment mean

Answer 9

whose who are currently full able and willing to work but don’t have a job

Question 10

what is meant by working population

Answer 10

all those ages 15-64 in the population - both economically active and inactive

Question 11

what is meant by employment rate

Answer 11

the percentage of people employed out of the working age population

Question 12

how do you calculate the employment rate

Answer 12

level of employment/working age population x 100

Question 13

what is meant by term labour force participation rate

Answer 13

the percentage of people in the working age population who are economically active

Question 14

how do you calculate labour force participation rate

Answer 14

economically active/working age population x 100

Question 15

what sector is the primary sector

Answer 15

extraction of raw materials

Question 16

what is the secondary sector

Answer 16

manufacture of raw materials into a product in factories using plant+machinery

Question 17

what is the tertiary sector

Answer 17

the service sector where product and services are sold to the customer

Question 18

what are some examples of a primary sector job

Answer 18

coal mining
oil mining
fishing
forestry
farming

Question 19

what are some examples of secondary sector jobs

Answer 19

builders
car manufacturers
steel workers

Question 20

what are some examples of tertiary sector jobs

Answer 20

retail stores
restaurants
cinema
banking
insurance
hairdresser
teacher
bus driver
doctor

Question 21

what is gdp

Answer 21

gross domestic product

the market value of all FINISHED goods and services, produced within a country in a year

Question 22

what are intermediate goods

Answer 22

goods that are used to make another finished product e.g. ingredients

Question 23

what are capital goods

Answer 23

a finished good used to make other goods e.g. tractor

Question 24

what is economic growth

Answer 24

the rate of growth of real nation income (GDP), it increases the countries output over time

Question 25

when does recession occur

Answer 25

when there are 2 consecutive quarters of negative economic growth

Question 26

what is a quarter

Answer 26

3 months of the year jan-march, apr-jun, jul-sept, oct-dec

Question 27

what is nominal gdp

Answer 27

GDP at current prices

Question 28

what is the truer picture

Answer 28

calculate real GDP (at constant prices) adjusted for inflation changes - so actual changes in output (volume) can be determined

Question 29

how do you calculate real GDP

Answer 29

real GDP= (nominal gdp X price index of base year) / price index of current year

Question 30

why can nominal gdp be misleading

Answer 30

because gdp may have risen because of prices increasing