Measuring the economy

Question 1

GDP measures … rather than wealth: the value of the … of … or expenditure or production

Answer 1

GDP measures flows, rather than wealth: the value of the flow of income or expenditure or production

Question 2

These flows are always equal: total …= total production/ … = Total …

Answer 2

• These flows are always equal: total incomes= total production/ output = Total Expenditure

Question 3

Product (output) Method: … … the value of all the … and … produced in the country

Answer 3

Product (output) Method: add up the value of all the goods and services produced in the country

Question 4

Income method: the … of all incomes generated salaries, … , …. and profit

Answer 4

Income method: the sum of all incomes generated salaries, rent, interest and profit

Question 5

Expenditure method : Everything that is … (and saved) by … or by the ….

Answer 5

Expenditure method : Everything that is spent (and saved) by consumers or by the government

Question 6

Consumer spending is represented as….

Answer 6

(C)

Question 7

Exports are represented as…

Answer 7

(X)

Question 8

Investment Expenditure is represented as…

Answer 8

(I)

Question 9

Government spending is represented as…

Answer 9

(G)

Question 10

Imports are represented as

Answer 10

(M)

Question 11

GDP =

Answer 11

C+G+I+(X-M)

Question 12

We have economic growth when the … increases between one period and the next.

Answer 12

GDP

Question 13

GDP per person=

Answer 13

Gross Domestic Income per person

Question 14

People’s income =

Answer 14

the standard of living

Question 15

To increase the income production needs to be increased through:

Answer 15

Use of all resources

Question 16

To increase the income production needs to be increased through:

Answer 16

Use of all resources, 
Use them with higher efficiency, 
Improve technology,
Use more skilled labour, 
Better organisation of work

Question 17

Investment is the Creation of ‘Capital’: … ; … ; … Capital

Answer 17

Investment is the Creation of ‘Capital’: Machinery; Infastructure; Human Capital

Question 18

Some income genereated in the UK flows …

Answer 18

Abroad

Question 19

GNP= … + net … to the UK from … investments

Answer 19

GNP = GDP + the net income to the UK from overseas investments

Question 20

minus the profits which leave the UK to foreign … abroad

Answer 20

investors

Question 21

Problems with GDP include that … conceal inequalities: 5 things

Answer 21

Averages

income, class, social, regional, gender etc

Question 22

PPP is short for

Answer 22

Purchasing Power Parity

Question 23

PPP … the numbers to take into account the different … of … and the cost of living in diverse places.

Answer 23

standardises

value of money

Question 24

When comparing … per capita across countries, need to adjust for …

Answer 24

GDP

PPP

Question 25

PPP can also tell about exchange rates in whether currencies are … or …

Answer 25

undervalued

overvalued

Question 26

Limitations include that it does not tell us everything about … and …

Answer 26

tariffs and subsidies

Question 27

the … and … economy are not accounted for gobally … billion a year

Answer 27

illegal and informed

$125

Question 28

Doesn’t account for the… price

Answer 28

ecological