The UK economy

• What is GDP?


  (Gross Domestic Product) Is the value of all newly produced final goods and services produced in a an economy within a given time ( interior)
• What is GNI?


  (Gross National Income) Total income earned by a nations residents both inside and outside the county e.g aid transferred to poorer counties
• What’s per capita ?


  adjust for population size
• what is the difference between Real and Norminal?


  Real: Adjusted for inflation. To reflect change in purchasing power for the currency Nominal: Not adjusted for inflation. values are raw so less useful
• What is total income per capita?


  Total income per capita is the total income of a country divided by its population.
• What’s the difference between value and volume ?


  where economic activity can be measured:

  value- in monetary terms

  Volume- quantity of goods and services
• What is PPP?


  (Purchasing Power Parity) is a method for adjusting economic data to to reflect differences in price levels between countries providing more accurate basis for comparison
• What does GDP not include ?


  . measure well being

  .account for inequality

  Account for environmental concerns
• What is HDI?


  (Human Development Index)the are an attempt to measure the quality of life beyond money.

  involves: long and healthy life
• What is GNH?


  (Gross National Happiness) measures pillars of national wellbeing including: indicators of sustainability, good governance
• What does The Eastrin Paradox suggest?

  Increase in income does not necessarily lead to happiness or life satisfaction Increase in income does not necessarily lead to happiness or life satisfaction