WOB - Economics - L4 GDP
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9 Terms
GDP
Gross domestic product
What is GDP?
The dollar value of all finished goods and services produced in a nation in a single year
What is GDP per capita?
GDP per capita is the GDP divided by the population of a country. it measures the average economic output per person, indicating the standard of living.
What is economic growth?
Economic growth is how much GDP increases or decreases over a year.
What is the link between a high GDP and the standard of living?
High GDP generally equals a high standard of living as people are able to buy more goods and services.
What is the acceptable standard rate of annual economic growth?
3%-4%
Why is this the acceptable standard for economic growth?
It allows for population growth, the replacement of goods etc and any rate above 4% is considered unsustainableand may lead to inflation or economic instability.
When more goods and services are produced, more people are employed and being paid wages.
When more goods and services are produced, more people are employed and being paid wages.
What is a finished good?
Something that will not be sold again as part of another good.