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Flashcards in Economic Policy Objectives Deck (35)
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1
Q

Define economic growth

A

An expansion of the productive potential in the economy

2
Q

What’s economic cycle?

A

The tendency of economic growth to rise and fall above and below trend rate of economic growth, causing booms and busts

3
Q

What’s GDP?

A

The value of goods and services produced in a country over a given period of time

4
Q

What’s GDP per capita?

A

Total GDP divided by the population of the country

5
Q

Define nominal GDP

A

The value of GDP without being adjusted for inflation

6
Q

Define real GDP

A

The value of GDP adjusted for inflation

7
Q

What’s short run growth?

A

Calculated annually by the percentage change in real GDP

8
Q

What’s long run growth?

A

An increase in the productive capacity of the economy

9
Q

What’s actual rate of growth

A

Economic growth measured by change in real GDP

10
Q

Define trend rates of growth

A

The average sustainable rate of average growth over a period of time

11
Q

Define economic development

A

An increase in living standards, freedom, and life expectency

12
Q

What’s the structure of an econmomy?

A

How the economy is made up in terms of what proportion of output comes from the different economic sectors

13
Q

What’s the primary sector?

A

The part of the economy focussed on raw materials, such as farming or mining

14
Q

What’s the secondary sector?

A

The sector which transforms raw materials into goods for consumers, the manufacturing industry

15
Q

What’s the tertiary sector?

A

The part of the economy concerned with the supply of services

16
Q

Define sustainable development

A

Development that occurs to meet the needs of the people of today without preventing future generations from meeting their needs; development that occurs without depletion of natural resources

17
Q

What’s the human development index (DHI)?

A

Measures an economies development based on income, health and education

18
Q

What’s the genuine progress indicator?

A

A measure of development calculated from 26 different indicators looking at economic, environmental and social factors

19
Q

Define the measuring national wellbeing programme

A

A report which measures how lives are improving; asks four key questions about life satisfaction, anxiety, happiness and worthwhileness

20
Q

What’s aid?

A

When a country voluntarily transfers resources to another or gives loans on a concessionary basis

21
Q

What are remittances?

A

A sum of money sent back to the domestic economy of a migrant

22
Q

Define unemployment

A

Those able and willing to work, but are not employed

23
Q

What’s the labour force survey?

A

A measure of unemployment which surveys people to class them as unemployed, employed or inactive under the ILO definitions

24
Q

What’s the claimant count?

A

A measure of unemployment; the number of people receiving benefits for being unemployed

25
Q

Define inflation

A

The general rise in prices that erodes the purchasing power of money

26
Q

Define deflation

A

The opposite of inflation, where the economy price level in the economy falls

27
Q

Define disinflation

A

A falling rate of inflation; prices are still rising but not as much

28
Q

Define hyperinflation

A

When the rat of inflation is high and accelerating, to the extent that it is out of control

29
Q

Define consumer price index

A

An official measure used to calculate the rate of inflation, using a weighted basket of goods

30
Q

Define retail price index

A

An old measure of inflation which has lost its national statistic status

31
Q

What is the balance of payments?

A

A record of all financial transactions over a period of time between economic agents of one country to another

32
Q

What’s the current account?

A

A record of the payments for the purchase and sale of goods and services, as well as income and transfers

33
Q

What’s the capital account?

A

A part of the BOP; involves transfers of the ownership of fixed assets

34
Q

What’s the financial account?

A

A part of the BOP; records FDI, portfolio investment and the transfer of gold and currency reserves

35
Q

Define income and current transfers (75)

A

Net earnings on foreign investment, net cash transfers and transfers that have no return such as aid and grants