GDP Basics
What does GDP stand for?
Gross Domestic Product
What does GNP stand for?
Gross National Product
A person who has a job and earns an income is said to be...
Employed
Someone who is able and willing to work but cannot find a job is...
Unemployed
True or False: High GDP always means people are living well.
False
GDP measures the value of goods and services produced where?
Within a country
GNP includes income earned by citizens living where?
Both inside and outside the country
What do you call a person working but not earning enough to meet basic needs?
Underemployed
Name one cause of underemployment in Jamaica?
Lack of skills/ slow economic/ automatic/ lack of investment
If a foreign hotel makes money in Jamaica, which does it increase first?
GDP
Can GDP increase even if unemployment remains high?
Yes
Why can GNP be lower than GDP in a country with many foreign companies?
Profits are sent overseas
Does informal work (e.g. street vending) count as employment?
Yes, if income is earned.
What term describes economic growth without job creation?
Jobless growth
Which better reflects citizens' income: GDP: GNP?
GNP
Name one limitation of using GDP to measure development.
Does not show income distribution/ living standards/ unemployment
How do remittances from abroad affect GNP?
They increase GNP
Why is high employment important for economic development?
Reduce poverty and increases income and productivity
Give one social effect of unemployment.
Crime/ poverty/ migration/ stress
A country has rising GDP but rising poverty. What does this show?
Growth is not inclusive
Explain the difference between GDP and economic development
GDP measures output; development includes quality of life.
Why might policymakers prefer GNP over GDP?
It reflects citizens' real income
Suggest one policy to reduce unemployment
Job training/ investment/ support for small businesses
How does unemployment affect government revenue?
Less tax income
"Wi cyaan eat statistics" refers to which limitation of GDP?
GDP does not measure living standards