Work through the list without notes. If you cannot do a statement, follow its link, then come back. Guide = study guide; Practice = practice questions.
Understanding
- I can explain why GDP is a useful indicator of a country’s economic performance. (Guide: “What GDP is good for”)
- I can tell exclusions by design (intermediate goods, used goods, financial transactions, transfers) apart from genuine limitations. (Guide: “Exclusions by design are not limitations”; Practice Q1)
- I can explain why nonmarket activities, such as home production and volunteering, are missing from GDP. (Guide: “Nonmarket transactions”; Practice Q1, Q5)
- I can explain what the informal (underground) economy is and why it is mostly missing from GDP. (Guide: “The informal (underground) economy”; Practice Q5)
- I can describe how leisure, the environment, the quality of output and the distribution of income limit GDP as a measure of well-being. (Guide: “The main limitations”; Practice Q3, Q6(c))
Calculation
- I can calculate GDP per person, converting billions and millions correctly. (Guide: Worked example 1; Practice Q2, Q6(a))
- I can estimate the change in GDP per person from the growth rates of GDP and population. (Guide: Worked example 1(c); Practice Q4)
- I can value a nonmarket activity at market prices and say how much production GDP misses. (Guide: Worked example 2(b); Practice Q5(b))
Reasoning
- I can explain why a rise in measured GDP may not mean people are better off, using an example such as repair spending. (Guide: Worked example 2; Practice Q3)
- I can explain how moving work from the home into the market overstates measured growth. (Guide: “Nonmarket transactions”; Practice Q7)
- I can use data to argue whether a country with higher GDP per person has a higher standard of living. (Practice Q6)
All ticked? Move on to Topic 2.3, Unemployment, or return to the course roadmap.