topic 9 - theme 2 Flashcards
who collects most of the data in the uk?
the office for national statistics (ONS)
who collect and publish data from other countries?
- the international monetary fund (IMF)
- the world bank
- UN
what does nominal value mean?
the value of an economic variable based on current prices, taking no account of changing prices through time
what does real value mean?
the value of an economic variable, taking into account of changing prices through time
how do you calculate real value/real % increase?
nominal % increase - inflation
what are index numbers?
a device for comparing the value of a variable in one period with a base period
how do you calculate new index numbers?
(new variable/base year variable) x 100
what does CPI stand for?
consumer price index
what is CPI?
a measure of the average change over time in the prices paid by consumers
how do you work our the CPI as a percentage?
(new CPI-old CPI)/old CPI x100
what does GDP stand for?
gross domestic product
what does GDP mean?
a measure of the economic activity carried out in the domestic economy over a certain period
what does GNP stand for?
gross national product
what does GNP mean?
a measure of the value of all goods and services produced by a country’s residents and businesses.
how do you work out GNP?
GDP + net income from abroad (NFFI)
what does the NFFI stand for?
net foreign factor income
what does NFFI mean?
the difference between the aggregate amount that a country’s citizens and companies earn abroad and the aggregate amount that foreign citizens and overseas companies earn in that country
how do you work out NFFI?
gross national product (GNP) - gross domestic product (GDP)
what is actual economic growth?
the rate of growth of GDP in a given period
what is potential economic growth?
an expansion in the productive capacity of an economy
what does GNI stand for?
gross national income
what does GNI mean?
the sum of all income earned by citizens or nationals of a country
what is GNI per capita?
the average level of GNI per person within an economy
how do you work out GNI?
total output of economy/ population
how do you measure inequality in income distribution?
Gini coefficient
what is the Gini coefficient?
a measure of how income is distributed with a score of 100 being the most unequal (one person has all the income and everyone else has none) and 0 being perfect equality (everyone has the same income)
