4.2.1.2 Flashcards
Macroeconomic indicators (19 cards)
What is an indicator in the context of measuring economic performance?
An indicator gives a measure on how well a government is doing on achieving its macroeconomic goals.
What are the nine indicators used to measure economic performance?
- Jobs
- Prices
- Trade
- Growth
- Development
- Efficiency
- Public services
- The environment
- Inequality of income and wealth
What does the ‘Jobs’ indicator measure?
How high is the unemployment and are there sufficient opportunities for people looking for work.
What does the ‘Prices’ indicator assess?
Are price rises under control and can the economy avoid a period of price deflation.
What aspect of the economy does the ‘Trade’ indicator evaluate?
How competitive are British businesses in the global economy.
What does the ‘Growth’ indicator reflect?
How successful has the country been in achieving growth and laying foundations for future development.
What does the ‘Development’ indicator focus on?
The expansion of people’s freedom to live long, creative, and healthy lives.
What is measured by the ‘Efficiency’ indicator?
Is the economy improving productivity to lower production costs and sell at lower prices.
What does the ‘Public services’ indicator examine?
Have the benefits of growth flowed through to state services such as the NHS and education.
What does the ‘Environment’ indicator consider?
Whether economic growth is sustainable in terms of environmental impact.
What does the ‘Inequality of income and wealth’ indicator measure?
Has the economy made progress in achieving an acceptable distribution of wealth and income.
What is GDP?
Gross Domestic Product is the value of the goods and services produced within an economy within a given time period.
What does Real GDP account for?
This is GDP that takes into account the impact of inflation.
What is Real GDP per capita?
Total GDP in the economy divided by the population, used as a measure of living standards.
What does CPI stand for and what does it measure?
Consumer Price Index; it measures the average changes in price in an economy.
What is the Claimant count?
A measure of unemployment based on the number of people who claim unemployment benefits.
What does the Labour Force Survey measure?
Determines someone as unemployed if they don’t have a job but are willing, able, and actively seeking work.
What is productivity in economic terms?
The value of outputs compared to the value of inputs.
What does the Balance of payments on the current account measure?
All economy’s international transactions, including trade balance, net primary income, and net secondary income.
