Economics - Mod 2 - Unit 1

Define Gross Domestic Product.

What is involved in the primary sector of the economy?

What is involved in the secondary sector of the economy?

What is involved in the tertiary sector of the economy?

Define economic growth.

When is economic growth positive?

When is economic growth negative?

When does a recession occur?

Describe the recession of 1990/91.

Describe the economic recession of 2008/09.

Why was the 2008/09 recession worse than the recession of 1990/91?

Define the economic cycle.

What is the boom phase of the economic cycle?

What is the slump phase of the economic cycle?

When did the UK last experience an economic slump?

What is the upturn phase of the economic cycle?

What is a downturn phase of the economic cycle?

What is a double-dip recession?

What are the 2 types of goods that are used to classify output?

How is economic growth and an economic recession illustrated on the PPF?

What does economic growth imply?

How does economic growth benefit individuals?

How does economic growth benefit firms?

How does economic growth benefit the state?

Define GDP per capita.

In theory, how does economic growth affect GDP per capita?

Why has GDP per capita not risen significantly since 2008 despite a growth in the economy?

Define inflation.

How is inflation measured in the UK?

How is the value of total output calculated?

What is the difference between nominal and constant GDP?

How is Real GDP calculated using nominal GDP?

How is GDP growth calculated as a percentage?

How is index calculated?

What is considered to be the indicator of a healthy economy?

Define the circular flow of income.

How is income exchanged between households and firms regarding factors of production?

How is income exchanged between households and firms regarding goods and services?

What 3 flows can be measured from the circular flow model?

What are the 3 injections into the circular flow?

What type of goods to firms invest in?

Give examples of areas where the government is likely to spend on.

What are exports?

What are the withdrawals from the circular flow?

What are savings?

Which taxes does the government use to withdraw income from the economy?

What are imports?

Which ways are used by the Office for National Statistics (ONS) to calculate the value of quarterly GDP growth?

How many compaines does the ONS collect sales information from?

How do ONS collect data on economic activity from government departments?

How does the department of Revenue and Customs provide a measure of national income?