economic growth

• GDP


  GDP is the monetary value of all final goods and services in an economy
• living standards


  refers to the quality or quantity of goods and services available to a given population
• limitations of using GDP to compare living standards

  inaccurate data - some countries are inefficient at collecting data

  black market - people work without declaring their income

  inequalities - an increase in GDP may be due to a growth in income if just one group of people
• real income


  income that's takes inflation into account
• nominal income


  GDP thats doesn't take inflation into account
• Gross National Income (GNI)

  the sum of a country's gross domestic product plus net income from abroad
• GDP per capita


  measure of a country's output that accounts for it's number of people
• purchasing power parity


  The PPP calculates how much goods and services would cost if countries used the same currency. this is because goods and services are priced differently in other countries

  calculated by the basket of goods
• comparison of rates of growth between countries and over time

  the data is compared to other countries to put figures in context. growth figures can be compared against similar countries.

  these figures can make judgements about economic welfare as growth in national income means higher living standards
• uk national well-being


  measuring living standards by using regular surverys that measure anxiety and happiness
• relationship between real incomes and subjective happiness

  shows that income and happiness is postively correlated.

  however as income rises past a certain level, happiness can fall - this is called the easterlin paradox