This document provides information on various economic indicators and statistics. Section A defines Gross Domestic Product (GDP), real GDP, Gross National Product (GNP), per capita GDP, and net factor income. Section B discusses limitations of GDP and effects of the black market. Section C presents 2012 GDP, GDP growth rates, unemployment rates, inflation rates, and UN Human Development Index rankings for Ireland, UK, USA, Canada, Congo, China, and Moldova.

1. Kris O’Neill
&
Aaron Byrne

2. Contents
(A)
i.
ii.
iii.
iv.
v.

Gross Domestic Product – GDP
Real GDP
GNP
Per Capita GDP
Net Factor Income
(B)
i.
Limitations of GDP
ii. Economic Effects of the Black Market
(C)
Global Statistics

3. Gross Domestic Product
Question 1. (A) (i)

 GDP is “one of the primary indicators used to gauge
the health of a country’s economy” (Investopedia, 2009)
 GDP indicates the size of an economy – It represents
all goods and services produced over a certain period
 GDP is usually compared to figures from the previous
year in an individual economy
Kris O’Neill

4. (A) (ii)
Real GDP

 Real GDP is “an inflation-adjusted measure that reflects the value
of all goods and services produced in a given year expressed in
a base price” (Investopedia, 2013)
 Real GDP takes into account changes in price level – providing
more accurate figures
 E.g. Ireland in 2005 – the Nominal GDP = €100 bill – Due to
increased level of prices from 2001-2005 the Real GDP = €90 bill
Kris O’Neill

5. Gross National Product

(A) (iii)
 GNP and GDP are closely related – the difference is that
“GNP is the total value of all goods and services produced
plus the income earned minus the income of non-residents”
(InvestorWords, 2013)
 The GNP measures the value of goods and services that all
citizens produce regardless of their location
 GNP is a one measure of the condition of an economy
Kris O’Neill

6. (A) (iv)
Per Capita GDP

 Per Capita GDP is a measure of the GDP of a country
divided by the number of people in the country
 Per Capita GDP is especially useful for comparing one
country to another with regards to performance
 It gives a good idea of the spending power per person
in one country
Kris O’Neill

7. Net Factor Income

(A) (v)
 Net Factor Income represents the difference between
payments received from the foreign sector by citizens
and payments made to foreigners who may be
employed to make a good or provide a service
 Net Factor Income is the difference between GDP and
GNP in a country
Kris O’Neill

8. (B)
i.
Limitations of GDP
ii.
Economic Effects of the Black Market
Aaron Byrne

9. 1. Unsustainable
practises

An environmentally damaging practice that can diminish a
natural resource thus negating the continued use or
availability of that resource.
E.G 1.
1. China fishing industry- One of the largest fishing industries
in the world.
2. 2005 – Aquaculture harvest was 32.4million tonnes.
3. Exports valued at €5.62billion
4. UN FAO – estimated 70% of the fish population is fully used
or in crisis.
Aaron Byrne

10. E.G 2.
1. Unsustainable
practises

 Fossil fuel consumption
1. Limited supply
2. Mass consumption of cheap fossil fuels
3. Saudi Arabia – worlds largest oil producer approaching
end of production
4. Replenishment rate of fossil fuels takes millions of years
Aaron Byrne

11. -70%

32,400,000
-22,680,000
9,720,000 tonnes
China fishing industry
€5,620,000,000
€-3,930,000,000
€1,690,000,000
Aaron Byrne

12. 2. Bad composition of
GDP

 The sum of all goods and services which are produced by
a country in a given period of time.
 Bad composition of GDP – how diversified the production
within an economy is.
E.G 1.
1. Saudi Arabia 2009: Agriculture – 3.2%
Services – 36.4%
Industry – 60.4%
2. Petroleum & petroleum products made up 90% of total
exports.
Aaron Byrne

13. 2. Bad composition of
GDP

E.G 2.
1. Mozambique 2007: Industry – 8%
Services – 15%
Agriculture – 77%
2. Main exports include: Cotton, sugar, cashews
and citrus.
Aaron Byrne

14. 3. Non-production
transactions

Transactions which producers provide to people
for free or at economically insignificant prices.
E.G 1.
1. Second hand sales – old equipment, vehicles,
un-used stock.
E.g. Bus van = €25,000 – annual depreciation 20%
Value after 3 years = €10,000
Sold for €9,500
Aaron Byrne

15. 
E.G 2.
1. Transfer payment – social welfare,
unemployment benefits, pension.
2. 2012 – 1.469million people in receipt of a weekly
welfare payment.
3. 2012 expenditure - €20.774billion
4. Decrease of 0.9% over 2011
5. Not counted as it is money transferred rather
than paid for products or services.
Aaron Byrne

16. 4.Income Inequality

The unequal distribution of household or individual
income across the various participants in an
economy.
1. E.g. 70% of the total income is controlled by 20%
of the population.
2. Overall wealth of a country is primarily
determined by the larger income of the
minority of the population.
Aaron Byrne

17. 
E.G 1.
1. Gini coefficent - measures degree of inequality
in distribution of income in a country.
2. 0=perfect equality, 1=perfect inequality
3. 2011 EU average = 30.7
4. 2011 – Ireland rank 20 – 31.1
5. Norway rank 1 – 22.9
Aaron Byrne

18. 4.Income Inequality

E.G 2.
Saudi Arabia
1. Oil industry 2012 - €218.80billion
2. Population – 28million
3. ¼ of population on or below poverty line
4. Estimated 2-4million natives live on less than
€386.85 a month - €12.40 a day
5. King Abdullah's personal fortune at €13.13bn
Aaron Byrne

19. 5. Population

China
2012
1. Population – 1.351 billion
2. GDP – €6.00trillion
3. Per capita – €4442.42
Switzerland
2012
1. Population – 7.997million
2. GDP – €461.09billion
3. Per capita – €57656.11
Aaron Byrne

20. 6. Black economy

Underground economy – any economic activity
that takes place outside of government control.
Annual cost Ireland - €6.1billion
E.G 1.
1. Construction industry – cash only/cash in-hand,
no VAT
2. Legitimate contractors- €250m to €500m back
into the industry

21. 6. Black economy

E.G 2.
1. Tobacco industry - €3 million per week from
illegal tobacco.
2. 2011- 15% of smokers consuming illegal
cigarettes
3. 2012- 95.6 million cigarettes seized valued at
€43.3 million
Aaron Byrne

22. B. ii)Economic effects
of black market in

Ireland
Unemployment
1. Ireland 2013 – 13.3%
2. 2012- 1.469million people in receipt
3. 2012 social welfare - €20.774billion
4. Budget 2014 – Job seekers allowance 14 Jan:
- No children, aged 18-24 = €100 per week
-No children, aged 25 = €144 per week
-Aged 26 increase = €188 per week
Aaron Byrne

23. B. ii)Economic effects
of black market in

Ireland
5. High unemployment benefits – beneficial to
remain unemployed and continue to claim
benefits, rather than work for a lower wage.
6. Nixers- people working off the books, cash in
hand, continue to claim unemployment
benefits.
Aaron Byrne

24. B. ii)Economic effects
of black market in

Ireland
Lost tax revenue
Cigarette smuggling
1. Annual government loss - €937million lost tax
revenue.
2. Retailers - €537million, job losses.
3. 32.8% discarded cigarette packs are nondomestic.
4. Ireland – largest smoker of smuggled cigarettes
in entire EU 2012

25. B. ii)Economic effects
of black market in

Ireland
5. Ireland 2013 – most expensive price per pack of
20 cigarettes in Europe.
6. Retail price - €9.50 per pack
7. Collected tax - €7.72
8. Illegal cigarettes purchased - €0.50c per pack
9. Selling price - €4.50
10. Difference - €5.00
Aaron Byrne

26. (C)
Global Statistics
Kris O’Neill

27. Question 1. (C)
IRELAND
GDP
GROWTH
RATE (MOST
RECENT)
(2012)
€
€
152.27
1.76
Billion
GDP PER
CAPITA
(2012)
USA
€
TOTAL GDP
(2012)
U.K.
CANADA
Republic
of Congo
China
Moldova
€
€
€
€
11.34
1.32
12.92
5.95
5.25
Trillion
Trillion
Trillion
Billion
Trillion
Billion
€
€
€
€
€
€
€
33,151.31
27,856.55
196.71
4,405.48
1,473.99
P/P
P/P
P/P
P/P
P/P
P/P
P/P
0.9%
0.3%
2.2%
1.7%
3.8%
7.8%
-0.8%

36,138.63 37,768.69
Kris O’Neill

28. Question 1. (C)
IRELAND
U.K.
USA
CANADA
Republic
of Congo
China
Moldova
6.90
50.30
4.10
4.70

UNEMPLOY MENT
(2013)
%
13.3
7.70
7.30
%
%
%
%
%
%
%
INFLATION
(2013)
%
0.20
2.70
1.50
1.10
1.43
3.10
3.90
%
%
%
%
%
%
%
#7
#26
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#186
#186
#186
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#186
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UN HDI
RANKING
(2012)
Kris O’Neill

29. Question 1 . ( A )
(i)
•
References
GDP

Investopedia. (2009). What is GDP and why is it so important?.
Available: http://www.investopedia.com/ask/answers/199.asp.
Last accessed 25/10/2013.
(ii)
•
Real GDP
Investopedia. (2013). Real Gross Domestic Product (GDP).
Available: http://www.investopedia.com/terms/r/realgdp.asp.
Last accessed 25/10/2013.
(iii)
•
GNP
InvestorWords. (2013). What is GNP?.
Available: http://www.investorwords.com/2186/GNP.html.
Last accessed 25/10/2013.
• Central Statistics Office. (2013). What are GDP and GNP?.
Available: http://www.cso.ie/en/studentscorner/nationalaccounts/whataregdpandgnp/.
Last accessed 25/10/2013.
Kris O’Neill

30. Question 1 . ( A )
(iv)
•
References
Per Capita GDP
Investopedia. (2013). Per Capita GDP.

Available: http://www.investopedia.com/terms/p/per-capita-gdp.asp. Last accessed
31/10/2013.
(v)
•
Net Factor Income
Dictionary, Business. (2013). What is Net Foreign Factor Income?.
Available:
http://www.businessdictionary.com/definition/net-foreign-factor-income.html.
Last accessed 31/10/2013.
Kris O’Neill

31. Question 1 . ( B )
•
References

Moultry, L . (2013). The Definition of Sustainable Business Practices.
Available: http://smallbusiness.chron.com/definition-sustainable-business-practices18748.html.
Last accessed 31st Oct 2013.
•
National Geographic. (1995). Diminishing Returns.
Available: http://ngm.nationalgeographic.com/ngm/0704/feature1/legacy1.html.
Last accessed 31st Oct 2013.
•
Quain, S. (2013). The composition of GDP.
Available: http://www.ehow.com/info_8562133_composition-gdp.html.
Last accessed 31st Oct 2013.
Aaron Byrne

32. Question 1 . ( B )
•
References

Welfare. (2012). Statistical Information on Social Welfare Services 2012 is published.
Available: http://www.welfare.ie/en/pressoffice/Pages/pr110713.aspx.
Last accessed 31st Oct 2013.
•
Sullivan, K. (2013). Saudi Arabia's riches conceal a growing problem of poverty.
Available: http://www.theguardian.com/world/2013/jan/01/saudi-arabia-riyadh-povertyinequality.
Last accessed 31st Oct 2013.
.
Aaron Byrne

33. Question 1 . ( B )
•
References

Irish Construction. (2013). Budget 2014 shadow economy reforms could be worth €250-€500m
to the building sector.
Available:
http://www.irishconstruction.com/budget_2014_shadow_economy_reforms_could_be_worth_25
0_500m_to_the_building_sector.PAGE3394.html.
Last accessed 31st Oct 2013.
•
The journal. (2012). Booming black economy killing small business.
Available: http://www.thejournal.ie/booming-black-economy-killing-small-business-533041Jul2012/.
Last accessed 31st Oct 2013
.
Aaron Byrne

34. Question 1 . ( B )
•
References

Citizen Information. (2013). Job seekers allowance.
Available:http://www.citizensinformation.ie/en/social_welfare/social_welfare_payments/unem
ployed_people/jobseekers_allowance.html.
Last accessed 2013.
•
Youtube - Economics: Off the Books: The Underground Economy http://www.youtube.com/watch?v=39SH1Y4L0k8
•
Youtube- (Macro) Episode 20: GDP - http://www.youtube.com/watch?v=yUiU_xRPwMc
•
Youtube - LImitations of GDP - http://www.youtube.com/watch?v=_dye0kH4idE
.
Aaron Byrne

35. Question 1 . ( C )
Ireland GDP
•
References

The World Bank. (2012). GDP (current US$).
Available: http://data.worldbank.org/indicator/NY.GDP.MKTP.CD.
Last accessed 25/10/2013.
Per Capita GDP
•
The World Bank. (2012). GDP per capita (current US$).
Available: http://data.worldbank.org/indicator/NY.GDP.PCAP.CD.
Last accessed 25/10/2013.
GDP growth rate
•
The World Bank. (2012). GDP growth (annual %).
Available: http://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG.
Last accessed 25/10/2013.
Unemployment
Kris O’Neill

36. Question 1 . ( C )
•
References

Central Statistics Office. (2013). Live Register.
Available:http://www.cso.ie/en/media/csoie/releasespublications/documents/latestheadlinef
igures/lreg_sep2013.pdf.
Last accessed 25/10/2013.
Inflation
•
Trading Economics. (2013). Unemployment Rate.
Available: http://www.tradingeconomics.com/country-list/unemployment-rate.
Last accessed 25/10/2013.
HDI Ranking
• Outreach. (2012). Human Development Index Trends. HDI Trends. 1 (2), 148-151.
Kris O’Neill