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GLOSSARY OF TERMS

Econometrics. An area of economics that combines economic theory and statistical principles/methods in order to develop mathematical estimates of key economic relationships (e.g., an estimate of the relationship between consumer spending and income).

Goods Sector. Is a classification term for those industries that produce goods for local consumers or for export. It includes agriculture; logging and forestry; fishing and trapping; mining; crude petroleum; utilities (electric power, gas and water); construction; and manufacturing. These industries are often collectively referred to as the Good Producing Industries.

Gross Domestic Product (GDP). A measure of the value of all goods and services produced within the province in a given period. GDP measures the size of the economy and whether it is growing. Statistics Canada estimates GDP in two ways. First, GDP at market prices which values GDP by totalling the expenditures required to purchase the goods and services produced. This method is often referred to as GDP from the expenditure side. Second, GDP at factor cost which values GDP by summing the payments made to the owners of the factors used in production (i.e., land, labour and machinery/buildings) inclusive of profit, which is the factor payment to entrepreneurs. Also referred to as GDP from the income side. GDP at factor cost equals GDP at market prices less indirect taxes and subsidies.

Multiplier. A number used to determine the impact of an event/project/industry on the economy. The ratio of total change in output or employment to the initial change (or direct change). For example, if an industry were to create 100 new jobs, it would require materials and services from its supplying industries. If this increase in demand created 30 new jobs in the supplying industries, the employment multiplier would be 1.3 [i.e., 100 (direct) + 30 (spinoff)].

Services Sector. Is a classification term for those industries that produce services for local consumers or for export. It includes transportation and storage; communication; wholesale/retail trade; finance, insurance, and real estate; community, business and personal services; and public administration. These industries are often collectively referred to as the Service Producing Industries.

This information was current as of September 30, 2001.