Measures of economic growth Flashcards
1
Q
Define productive capacity.
A
How much could be produced with the resources abailable.
2
Q
Define production.
A
How much is produced in total.
3
Q
Define productivity.
A
How much is produced per unit of input.
4
Q
What does ¨Real GDP¨ not show?
A
- What is being produced.
- How the income is distributed.
- The impact on the environment.
- How evenly the wealth is distributed.
- How much production is illegal or undeclared income to the economy.
5
Q
Define ¨Net Social Welfare.¨
A
A measure of growth that includes both economic and non-economic factors.
6
Q
Define ¨Income Distribution.¨
A
Shows how evenly the total income in the country is shared amongst the population.
7
Q
Define ¨Public Facilities.¨
A
These are places or services abailable for everyone to acess.
8
Q
Define ¨Human Development Index.¨
A
Used to measure and compare a country´s social and economic development with those of other countries.
