Unit 1.2 And 1.3 Flashcards
What is GDP?
Measure of how much is produced in a particular country in a year
What is GDP per capita?
GDP / total population
What does GDP per capita measure ?
Average income
Living standards
Who’s is Angus Maddison?
Dedicated life’s work to finding scarce date needed to make useful comparisons of how people lived across more than 1000 years ago
T or F : Countries like China and India saw economic improvements after colonial rule ended?
True
Why were there major differences in living standards between countries after growth?
Sustained growth occurred at different times in different countries at different levels
What is the invisible hand?
A concept implied by Adam Smith where it gives an early idea of supply in demand in saying that businessmen act out of self interest where they promote goods that they think is a good product but will change it depending of the demand of the product
What is specialisation?
The idea of specialisation introduced by Adam Smith implies that when multiple people specialise in a certain product there will be a higher level of production and this is where trade expanded as they had excess products to trade .
What does GDP fail in taking into account?
Difference between people and depletion if environmental resources
What is correlated with GDP
Life expectancy, degree of satisfaction and well being
What things does the measure of output not take into account ?
Quality of social and physical environment
Amount of free time available
Goods and services produced within households
List two problems of GDP
It measures output but doesn’t take into account how that output is distributed amongst the population
The costs of destroying the natural environment to produce outputs are not taken into account
True or false : Richer countries don’t have a higher average of emissions per capita
False
