Measures of Economic Performance

Question 1

What is an index number?

Answer 1

A number used to allow us to compare models better

Question 2

What is the formula for the index number?

Answer 2

Raw number in period
——————————— x 100
Raw number in base period

Question 3

What is the raw number in period?

Answer 3

The number you are comparing the base to

Question 4

What is the raw number in base period?

Answer 4

The first number in the table

Question 5

What is a nominal price/value?

Answer 5

Today’s value of an item, including inflation

Question 6

What is a real price/value?

Answer 6

A value that TAKES OUT INFLATION to find the value of a price according to a base year

Question 7

What is the formula for the price index for real and nominal values?

Answer 7

Nominal value
——————— x 100
Real value

Question 8

What is CPI (consumer price index)?

Answer 8

A measure of the average change over time in the price paid by consumers for a representative basked of consumer goods and services, accounting for inflation

Question 9

What is GDP?

Answer 9

Total value of all goods and services in an economy

Question 10

What is GDP per capita?

Answer 10

Mean wealth of each citizen of the population

Question 11

What is GNI (gross national income)?

Answer 11

Income earned by citizens outside the country + GDP