SS (Lesson 1)

• Nominal GNP is the current price GNP
• current prices are the prevailing market prices during the accounting year
• real GNP refers to the constant-price GNP.
• price index is a number that shows how much an average of prices had changed over time
• consumer price index refers to the average changes in the retail prices of a market basket
• market basket refers to the goods and services households commonly purchase for their consumption in a period of time
• weighted price is the quantity of weight of purchased items multiplied by the product unit price
• externality is a side ffecr or consequence of an industrial or commercial activity that affects other parties
• human development index is a measure of how well a country has performed not only in terms of real income growth but also in terms of social indicators