What are the roles of money - CORRECT ANSWER-medium of exchange, store of
value, unit of account and a mean of deferred payment
What is meant by money being a mean of deferred payment - CORRECT ANSWER-
Allows it to be widely accepted way to value a debt allowing you to acquire goods
now and pay in the future
What is meant by money being a store of value - CORRECT ANSWER-Referring to
an asset that it's value can be retrieved at a later date as money allows purchasing
power to be transferred from the present to the future
What is meant by money being a unit of account - CORRECT ANSWER-Allows
money to give thing a value that can be expressed in an understandable way e.g.
a bar of chocolate is £3
What are the criteria of money - CORRECT ANSWER-Durable
Portable
Must be divisible
Accepted by everyone
Limited in quantity
, Complex enough to prevent counterfeit
What is economic growth - CORRECT ANSWER-Growth in GDP over time
What is GDP - CORRECT ANSWER-The total market value of goods and services
produced in an economy in a year
How is the rate of economic growth calculated? - CORRECT ANSWER-Rate of
Economic growth = (change in GDP between year 1 and year 2 /GDP in year 1) x
100
How do you calculate GDP per capita - CORRECT ANSWER-GDP divided by
population
What does GDP per capita measure? - CORRECT ANSWER-The average income of
each person in the country and helps to compare living standards between
countries
What is real GDP - CORRECT ANSWER-GDP adjusted for inflation
What are causes of economic growth - CORRECT ANSWER-Investment in capital
goods
Technological development
Education and training
value, unit of account and a mean of deferred payment
What is meant by money being a mean of deferred payment - CORRECT ANSWER-
Allows it to be widely accepted way to value a debt allowing you to acquire goods
now and pay in the future
What is meant by money being a store of value - CORRECT ANSWER-Referring to
an asset that it's value can be retrieved at a later date as money allows purchasing
power to be transferred from the present to the future
What is meant by money being a unit of account - CORRECT ANSWER-Allows
money to give thing a value that can be expressed in an understandable way e.g.
a bar of chocolate is £3
What are the criteria of money - CORRECT ANSWER-Durable
Portable
Must be divisible
Accepted by everyone
Limited in quantity
, Complex enough to prevent counterfeit
What is economic growth - CORRECT ANSWER-Growth in GDP over time
What is GDP - CORRECT ANSWER-The total market value of goods and services
produced in an economy in a year
How is the rate of economic growth calculated? - CORRECT ANSWER-Rate of
Economic growth = (change in GDP between year 1 and year 2 /GDP in year 1) x
100
How do you calculate GDP per capita - CORRECT ANSWER-GDP divided by
population
What does GDP per capita measure? - CORRECT ANSWER-The average income of
each person in the country and helps to compare living standards between
countries
What is real GDP - CORRECT ANSWER-GDP adjusted for inflation
What are causes of economic growth - CORRECT ANSWER-Investment in capital
goods
Technological development
Education and training
