GDP & Economic Indicators
What does GDP stand for?
Gross Domestic Product
What does HDI stand for?
Human Development Index
Which organization stabilizes global currencies and offers crisis loans?
IMF (International Monetary Fund)
Who controls fiscal policy?
The government
What is the main goal of Fair Trade?
To ensure fair wages and ethical working conditions
In the GDP formula C + I + G + (X – M), what does “I” represent?
Investment
What does the Gini coefficient measure?
Income inequality
Which institution funds long-term development projects?
The World Bank
Who controls monetary policy?
The central bank
Name one common Fair Trade product.
Coffee, chocolate, bananas, etc.
When the government builds new hospitals, which GDP component increases?
Government Spending (G)
What does a population pyramid with a wide base represent?
A fast-growing population
Which organization regulates world trade?
WTO (World Trade Organization)
Cutting taxes and raising spending are examples of what kind of policy?
Expansionary fiscal policy
What does “profit with purpose” mean in Conscious Capitalism?
Making profit while serving social or environmental goals
If exports rise while imports fall, how will that affect a country’s GDP?
GDP will increase because net exports (X – M) grow.
Country A has a high HDI but also a high Gini coefficient. What does this combination tell us?
The country is developed overall but has high inequality.
Which organization conducts research and gives policy advice to advanced economies?
OECD
What happens to investment when interest rates increase?
It decreases
Who co-founded the Conscious Capitalism movement?
John Mackey and Raj Sisodia
Why is GDP not enough to measure development?
It doesn’t include inequality, environment, or quality of life
Name two indicators that reflect a country’s quality of life beyond GDP.
HDI, Happiness Index, Life expectancy, Literacy rate
If a country faces a debt crisis, which two organizations are most likely to intervene?
IMF and World Bank
If inflation is too high, what monetary action can the central bank take?
Raise interest rates (contractionary policy)
In one sentence, explain how Fair Trade and Conscious Capitalism differ.
Fair Trade focuses on producers; Conscious Capitalism transforms companies from within.