Measuring Economic Growth (Edexcel A-Level Economics A): Flashcards
📚Flashcards
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Practise the cards
10 cards from this deck
GDP
GDP
Total value of goods/services produced in an economy
Why GNI preferred over GDP
Why GNI preferred over GDP
Includes net income flows from abroad (remittances)
Remittances
Remittances
Income sent home by citizens working abroad
GNI per capita
GNI per capita
Average GNI per head of population
Key weakness of GNI per capita re: distribution
Key weakness of GNI per capita re: distribution
Doesn't show inequality in income distribution
Informal economy
Informal economy
Unrecorded economic activity not monitored
Purchasing power parity (PPP)
Purchasing power parity (PPP)
Exchange rates reflecting relative purchasing power of incomes
Effect of USD comparisons on low-income countries
Effect of USD comparisons on low-income countries
Understates real incomes/exaggerates gap with rich countries
Environmental disaster effect on GNI
Environmental disaster effect on GNI
Clean-up costs increase GNI despite reducing quality of life
Easterlin paradox
Easterlin paradox
Happiness increases with income but only up to a point