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Unit 2 Summary notes ­ Matthew Mavin
Measurements of economic performance
Economic growth
Two meaning of the term economic growth:
- Actual growth, increase in real incomes or GDP - Potential growth, increase in the productive capacity in
a country
Real values are adjusted to remove the effects of inflation.…

Page 3

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Page 4

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Unit 2 Summary notes ­ Matthew Mavin
Two surveys need to be undertaken:
- The expenditure and food survey. Collecting info from nearly 7,000 households. Self-reported diaries.
Used to calculate weighting of spending (e.g. 10% spent on food, 10% of money is for food) - Price
survey. Basket of goods.…

Page 5

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Page 6

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Unit 2 Summary notes ­ Matthew Mavin
Types and costs of unemployment:
Classical view: there are only unemployed people who are not able and willing to work at the going wage
rate. I.e. if people were willing to accept lower wages they would not be out of work. If people…

Page 7

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Page 8

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Unit 2 Summary notes ­ Matthew Mavin
Trade in goods measures the movement of tangible products across international borders. Trade in
services measures movement of intangible output. Investment income is a measure of interest, profit and
dividends that are rewarded for capital investments in another country. E.g. If a British…

Page 9

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Page 10

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Unit 2 Summary notes ­ Matthew Mavin
Problems of HDI
- No indication of distribution of income (human poverty index may be more useful as it records what
people go without rather than what they have) - life expectancy is easy to measure but gives no
indication of quality of…

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Pages in this set

Page 1

Preview of page 1

Page 2

Preview of page 2
Unit 2 Summary notes ­ Matthew Mavin
Measurements of economic performance
Economic growth
Two meaning of the term economic growth:
- Actual growth, increase in real incomes or GDP - Potential growth, increase in the productive capacity in
a country
Real values are adjusted to remove the effects of inflation.…

Page 3

Preview of page 3

Page 4

Preview of page 4
Unit 2 Summary notes ­ Matthew Mavin
Two surveys need to be undertaken:
- The expenditure and food survey. Collecting info from nearly 7,000 households. Self-reported diaries.
Used to calculate weighting of spending (e.g. 10% spent on food, 10% of money is for food) - Price
survey. Basket of goods.…

Page 5

Preview of page 5

Page 6

Preview of page 6
Unit 2 Summary notes ­ Matthew Mavin
Types and costs of unemployment:
Classical view: there are only unemployed people who are not able and willing to work at the going wage
rate. I.e. if people were willing to accept lower wages they would not be out of work. If people…

Page 7

Preview of page 7

Page 8

Preview of page 8
Unit 2 Summary notes ­ Matthew Mavin
Trade in goods measures the movement of tangible products across international borders. Trade in
services measures movement of intangible output. Investment income is a measure of interest, profit and
dividends that are rewarded for capital investments in another country. E.g. If a British…

Page 9

Preview of page 9

Page 10

Preview of page 10
Unit 2 Summary notes ­ Matthew Mavin
Problems of HDI
- No indication of distribution of income (human poverty index may be more useful as it records what
people go without rather than what they have) - life expectancy is easy to measure but gives no
indication of quality of…

Comments

No comments have yet been made