MCQ revision Flashcards
Differences between claimant count and LFS
- claimant count is number of people claiming unemployment benefits from the government
- LFS is a sample of the population who claim to be seeking work but are not currently in work; it gives a bigger value as people excluded from JSA can be included in LFS
How do you work out real economic growth
- value of new GDP divided by (100+inflation rate) x 100 to give real value of new GDP
- real value of new GDP- new GDP/ new GDP x 100
What are the components of static efficiency?
Allocative, productive and x efficient
What is narrow and broad money?
narrow= notes and coins in circulation plus central bank balances (liquid money) broad= assets that are less liquid+ narrow money
What is joint supply
when the production of one good involves the production of another
what is composite supply??
when demand for a good can be satisfied by the supply of two or more goods that are substitutes for each other eg tea and coffee
what is competitive supply?
when the production of two goods can be achieved from the same factors of production
Difference between CPI and RPI?
RPI = retail price index and is calculated from a basket of goods and their change in price, each weighted depending on the average proportion of spending spent on each item. includes spending on mortgage and council tax; therefore higher rate of inflation calculated
-excludes top 4% of households
CPI= consumer price index, excludes council tax and mortgage payments so gives lower value, bigger size of population used, official measure so easily comparable to other countries,
What is GPI?
Genuine progress indicator- an alternative to GDP which measures the cost of negative externalities such as crime and resource depletion, it doesn’t assume that all economic growth is good
What is composite demand and competitive demand??
Composite demand happens when goods or services have more than one use so that an increase in the demand for one product leads to a fall in supply of the other
Competitive demand-Competitive Demand means You can derive equal satisfaction from either product (substitutes)
whats the difference between the participation rate and dependency ratio?
participation rate= number of people seeking work as a % of the working population (16-65)
Dependency ratio= the ratio of people aged 16 and under and 65 and over to the working population.
What do marginal propensity to save and marginal propensity to consume equal?
1
How do you work out marginal propensity to withdraw?
marginal propensity to save+ import+ tax
