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6 Cards in this Set
- Front
- Back
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What is economics? |
The branch of knowledge concerned with the production, consumption and transfer of wealth |
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Why an economy grow over time |
Economic growth occurs when an economy increases the volume of goods and services produced over a period of time. measuring economic growth is important as it is linked to many other aspects of the economy and to our ability to satisfy the needs and wants of the consumers |
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What indicator is used to measure economic growth |
The most commonly used general measure of this is the annual rate of growth in real gross domestic product (GDP) |
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What is Australias target for economic growth |
3-4% |
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How is GDP measured |
total market value of final goods and services products by a country over a period of time. The most common means of measuring GDP is by using the aggregate demand |
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Three limitations of using GDP as a measure |
GDP doesn't include non market production GDP doesn't provide information about the distribution of production GDP doesn't consider the impact of production on the environment. |
