Edexcel Business A Level Revision

GDP (Gross Domestic Product) - The total value of output (goods and services) produced in the UK in a particular time period, used to measure change in economic activity.   NATIONAL INCOME / POPULATION To assess the economies development of growing economies the following indicators can be used; GDP (represented in US dollars ($), which allows for direct campariosn between countires) Literacy Health Human Development Index (HDI) GROSS DOMESTIC PRODUCT  The main measure used is GDP and is calculated by - NATIONAL INCOME / POPULATION Gross domestic product is the economic activity of a country and shows its up and downs if measured over time, known as the business cycle. This is the most commonly used method to measure a country's living standards. As GDP per capita rises, it is also assumed that living standards in that country also rise.   LITERACY   This refers to the percentage of adults who can read and write. Investment in human capi...

Growth rate - is the rate at which a nation's gross domestic product (GDP) changes/grows from one year to another Gross Domestic Product - The total value of output (goods and services) produced in the UK in a particular time period, used to measure change in economic activity. Emerging economies - An economy with incomes that are growing but are still quite low. Such countries constitute approximately 80% of the global population and represent about 20% of the world's population. BRIC economies - The economies of Brazil, Russia, India and China, which are at a similar stage of economic development. Exchange rates - The price of one currency in terms of another Purchasing Power Parity (PPP) - Allows for differences in the cost of living in different countries, which gives more realistic comparisons of GDP According to the Office for National Statistics, the UK economy has grown by an average of 2.2% every year since 1956. However, emerging economies such as China an...