NCEA Level 2 - Growth

Which one of these is not a measure of growth

• Net Social Welfare

• HDI

• GDP

• Economic Growth

• Productive Capacity

What is Nominal GDP?

• Using inflation to show growth

• Using current value of money on the day

• Seeing changes to output

• Showing the growth of an economy by looking at output increases

Why is Real GDP better than Nominal GDP

• It shows actual increases or decreases in output

• It allows economists to see if there is more growth

• It shows whether there has been an actual increase in inflation

• Nominal GDP doesn't allow people to see an increase in output

What is CPI

• The consumers price index (CPI) is a measure of inflation for New Zealand

• The consumers price index (CPI) is a measure of inflation for New Zealand producers

• The consumers price index (CPI) is a measure of inflation

• The consumers price index (CPI) is a measure of inflation for New Zealand households

Define GDP

• The value of goods and services in an economy in a year

• The value of goods and services produced in an economy in a year

• The value of goods and services produced in an economy in a 6 month period.

• The value of goods and services in an economy during a year.

What are negative effects of Growth

• Increase in resources, increased inflation

• Resource Depletion, Increased inflation

• Environmental damage, increases in resources found

• Increased equity, increased equality

What does HDI look at?

• A long and healthy life: Life expectancy at birth, Education index: Mean years of schooling and Expected years of schooling, A decent standard of living: GNI per capita

• Life expectancy from birth to death, ability to access school, A decent standard of living: GNI per capita

• Education index: Mean years of schooling and Expected years of schooling, A decent standard of living: GNI per capita

• Ability to access school, A decent standard of living: GNI per capita, Happiness index.

What does productive capacity measure?

• Measures an economies potential rather than looking at what they actually produce.

• Measures an economies actual ability to produce goods and services.

• Measures an economies potential