Economics Flashcards
(18 cards)
What is economics?
Production and consumption of goods and services
What is economic growth?
Growth of an economy through high quality/quantity of goods and services, high employment etc.
What is GDP?
Gross Domestic Product is the amount of goods and services an economy makes and sells
What is the real economic growth rate?
Is an accurate rate of growth, considering inflation as well as growth
How is economic growth measured?
Measured by the GDP
How do you calculate GDP per capita?
GDP divided by population
How do you work out the real economic growth?
Growth subtract inflation
How do we work out economic growth?
New number subtract old number, divided by old number multiplied by 100
Can you work out how long it will take for an economy to double in size?
72 divided by growth rate
List some other indicators that can be used to measure a countries wealth?
Life expectancy, literacy rate, population, below poverty line (%) and electric power consumption
What are the main causes of economic growth?
Improvement in quality/quantity of goods and services, high consumer spending, government spending and investments, imports and exports, supply and demand.
What is inflation?
The change of the price of goods and services. Which can decrease or increase.
What are the benefits of economic growth?
High income, lower unemployment, lower government borrowing, improved services and investment.
What are the costs of economic growth?
Inflation, account deficient, environment costs and reduced inequality.
What is the Production Possibilities Frontier?
Shows the maximum possible production level of one commodity for any given production level of production.
What is opportunity cost?
The money or other benefits lost when pursuing a particular course of action instead of a mutually exclusive option.
What is remittance?
A sum of money sent to another country, usually to a family member.
What happens when there is no remittance?
Homelessness, violence, economic loss.
