Paper 2 Flashcards
What is the definition of economic growth?
Growth in GDP over time.
What is the Gross Domestic Product?
The total value of goods and services produced in a country in a year.
How do you find GDP per capita?
Gross Domestic Product divided by the population.
What is an economic Boom?
A period of HIGH economic growth.
What is a recession?
Two or more consecutive quarters of negative economic growth.
What is the labour force?
The number of people who work in a country.
How would you define employment?
The use of labour in an economy to produce goods and service.
What is the definition of unemployment?
Measures the number of people who are able to work, but do not have a job during a certain period of time.
What is the claimant count?
A measure of unemployment that includes those receiving unemployment benefits.
What is the Level of Unemployment?
The number of people in the working population who are unemployed.
How would you identify the Rate of Unemployment?
Find the percentage of the country’s workforce that is unemployed.
What is Frictional Unemployment?
Unemployment caused by time lags when workers move between jobs.
What is Seasonal Unemployment?
Unemployment caused by a fall in demand during a particular season.
What is Structural unemployment?
Unemployment caused by a permanent decline in industry.
What is Cyclical Unemployment?
Unemployment caused by a lack of demand in the economy.
