Supply
Billy gets a new pump for his HVAC business and can now complete some jobs faster. This is which factor of supply.
Technology
The price of Blitz cola increases drastically. This is this factor of demand.
Price of substitutes.
GDP stands for this
Gross Domestic Product
When higher prices drive up GDP it is a result of this.
Inflation
_____________ - _______________ is also factored into GDP
Imports- Exports
A late freeze hit Ore Ida's large potato fields this affects this factor of supply
Natural Conditions
An influx of youths move into town. This affects this factor of demand
Population likely to buy
The definition of an intermediate good
A good used to make something else
The C the I and the G in the GDP formula.
Consumer Spending, Investment, Government Spending.
The definition of consumer surplus
the amount people are willing to pay - what they actually pay
The government makes stricter regulations on the production Nintendo Switch controllers because kids are getting cramps. This affects this factor of supply
Regulations/Taxes
People hear that they price of new cars is going to drop next summer
Future expectations.
2 limits of using GDP as a metric for economic "health"
- Black market
- Free services
- Inflation
An improvement in the quality of goods that raises prices is not a result of this.
Inflation
Compound growth is
Growth from interest on interest
The price of gasoline falling affects this factor of supply
Inputs
The price of vinegar rises drastically. This affects this factor of supply.
Price of compliments.
3 metrics besides GDP used to gauge the "health" of an economy.
-Literacy rate
-Poverty
- Life expectancy
- Unemployment
- Happiness
The rule of 70
70/ growth rate
This country as experience catastrophic inflation since around 2014
Venezuela
3 Causes of a shortage
Temporary supply constraints, e.g. supply disruption due to weather or accident at a factory.
Fixed prices – and unexpected surge in demand, e.g. demand for fuel in cold winter.
Government price controls, such as maximum prices.
Monopoly which restricts supply to maximise profits. For example, a landlord who doesn’t rent property but prefers to avoid tax and keep property unoccupied.
Embargoes or trade war – e.g. restrictions on imports of oil can lead to a shortage of petrol in that country
An example of a highly elastic good
Fresh peas, fresh tomatoes, foreign travel.
GDP is different from a supermarket for this reason
Everything at a supermarket is accounted for.
The form of GDP that measures quality of life over time
GDP per capita
This country was the world leader in GDP per capita in 1650
UK