2.1.1 Economic growth

GDP

It is the total value of goods and services produced in a country within a year.

Disadvantages of GDP

• Lack of information - unequal distributions of income

• Quality of good/services are unknown

• Environmental factors

GNI

Measures income received by a country both domestically and via net incomes from overseas

Purchasing power parties

An exchange rate of one currency for another which compares how much a typical basket of goods in the country costs compared to one in another country.

6 factors affecting national wellbeing

• Real GDP per capita

• Health

• Life expectancy

• Having someone to count on

• Perceived freedom to make life choices

• Freedom from corruption and generosity