Theme 2- Economic growth (key terms)

Question 1

GDP (Gross Domestic Product)

Answer 1

The total value of all goods and services produced in an economy in a given period of time

Question 2

Economic growth

Answer 2

The rate of increase of actual real GDP or an increase in the productive capacity of the economy

Question 3

GNI

Answer 3

The GDP plus the NET income earned abroad

Question 4

Nominal values

Answer 4

Values not adjusted for inflation

Question 5

Real values

Answer 5

The value of an economic variable taking account of changing prices over time (adjusted for inflation)

Question 6

gdp or gni per capita

Answer 6

GDP or the GNI of a country divided by its population (per person)

Question 7

Purchasing power parity (PPP)

Answer 7

Adjusting GDP or other variables to reflect how much the local currency actually buys you, or the purchasing power of the country

Question 8

Real incomes

Answer 8

Incomes after rising prices (inflation) is taken into account

Question 9

Subjective well-being

Answer 9

How happy or content people feel, based on your own personal judgement

Question 10

Gross National Happiness (GNH)

Answer 10

An alternative to measuring GDP. It reflects the quality of life or non-monetary measures of the well-being of society