Economic Performance and Living Standards

Flashcards about economic performance and living standards

What do improvements in economic performance correlate to?

Improvements in living standards.

What do living standards refer to?

The quality of life one experiences.

What are the two types of living standards?

Material and non-material living standards.

What are material living standards?

The quality of life one experiences, measured financially (e.g., Income & GDP Per Capita).

What are non-material living standards?

The quality of life one experiences, measured non-financially (e.g., Happiness & health).

What is a standard?

A certain level of attainment or achievement.

When discussing a country's living standards, what are we specifically looking at?

Looking at what it's like to live in that country in terms of the material and non-material wellbeing of its citizens.

In what two ways is the living standard of a population measured?

Material and non-material living standards.

What do material living standards refer to?

Access to physical goods and services.

How are the material living standards of a nation usually assessed or measured?

The quantity of goods and services available each year as measured by Gross Domestic Product (GDP).

What are non-material living standards?

Factors that cannot be measured in dollar terms, are intangible, but affect our enjoyment of life.

What attempts to include non-material living standards to assess overall wellbeing?

Indicators such as the OECD Better Life Index.

What is GDP relative to environmental costs?

An indicator of economic wellbeing that does not take into consideration the environmental costs of producing goods and services.

What does the OECD Better Life Index seek to provide?

Seeks to provide a more holistic picture of the true living standards by measuring progress based on 11 criteria, one of which is the environment.

What is an 'Economy'?

The level of production, consumption, and wealth within a particular area.

What does 'Economic performance' refer to?

The amount of production, consumption, and wealth.

What are three main ways to measure economic performance?

Gross Domestic Product (GDP), Unemployment, and Inflation.

What does the business cycle describe?

The recurring pattern of expansion and contraction in economic activity.

Why do we use the business cycle?

To measure our economic performance and for the government to make decisions to influence or adapt to an economy.

What is the lowest point in the business cycle called?

Trough.

What does Gross Domestic Product (GDP) refer to?

The total value of all goods and services produced in an economy within a specific period.

How does GDP growth indicate economic performance?

It shows the economy's expansion or contraction over time.

What is the Federal Government's objective for GDP growth?

3-4% GDP growth each year.