Economic Fundamentals
What three core activities define an economy?
Production, consumption, and distribution of goods and services.
Standard of living measures material well-being based on the level of what three things available to people?
Wealth, comforts, and services.
What does GDP stand for, and what total value does it measure?
Gross Domestic Product; the total value of all final goods and services produced in a country.
Quality of life measures the degree to which an individual is able to do or experience what three things?
Healthy, comfortable, and able to participate in or enjoy life events.
Does having a high standard of living automatically mean a country has a high quality of life?
No, one does not necessarily imply the other.
What three groups make up and contribute to Canada's economy?
Business, labour, and government.
Standard of living evaluates what specific type of well-being for the average person in a society?
Material well-being.
How do you calculate GDP per capita from total Gross Domestic Product?
Divide total GDP by the number of people in the country.
According to the comparison in the text, quality of life is primarily related to what?
our satisfaction with the conditions you live in.
Between standard of living and quality of life, which concept is larger and contains the other within it?
Quality of life (it fully includes standard of living).
What three key economic benefits does a country's economy generate?
Wealth, jobs, and incomes.
According to the comparison in the text, standard of living is primarily related to what?
What material goods you have.
Why is total GDP divided by the population to calculate GDP per capita?
To make the economic data comparable between different countries.
Why is quality of life classified as "highly subjective"?
Because it is based on individual experience.
What two safety and environmental issues can drastically lower quality of life despite high incomes and strong infrastructure?
Severe air pollution and high threat of crime on the streets.
What two main measures determine whether an economy is considered strong or weak?
Standard of living and quality of life.
What are four factors or indicators that help determine standard of living?
Average income levels, employment opportunities, consumer spending, and government spending (or infrastructure).
What specific currency unit is used in the text to display GDP per capita ranges?
US Dollars (US$).
Name five specific indicators used to infer the overall quality of life in a society.
Access to education, literacy rate, personal safety, social conditions, and environmental quality (or political stability, individual freedoms, life expectancy).
What two social and civil restrictions mentioned in the text can reduce quality of life regardless of economic wealth?
Laws restricting who you are allowed to marry and restrictions on freely practicing your religion.
What type of nations offer a higher standard of living than developing countries, and what specific country is given as an example?
Industrialized countries; Canada.
What happens to a country's standard of living as it acquires more money?
Its standard of living becomes higher.
What is the highest GDP per capita dollar range currently?
$100,000 to over $288,000
Besides standard of living, what two additional types of factors does quality of life include?
Social factors and environmental factors.
If a country has high employment, strong public programs, high incomes, and modern infrastructure, but heavy social restrictions and pollution, what is its economic status?
A high standard of living, but a low quality of life.