3. Guest Lecture - Beyond GDP

Question 1

What does GDP measure?

Answer 1

Economic activity: the value added of goods and services produced.

Question 2

Why is it hard to measure GDP? Name 2 reasons

Answer 2

• Economic growth makes changes in price, quantity and quality
• Digitisation
• Globalisation

Question 3

Name 3 critiques on GDP

Answer 3

1. Not a measure of wellbeing
2. Does not include sustainability
3. Does not include inequality
4. Does not include informal economy

Question 4

Name 2 arguments why GDP is a good proxy for wellbeing

Answer 4

1. There is a correlation between GDP and wellbeing
2. GDP is needed for sustainability (according to EKC and Green Growth)
3. GDP is needed to resolve inequality (according to Kuznets curve)

Question 5

What are the three pillars of WISE?

Answer 5

1. Wellbeing
2. Inclusion
3. Sustainability

Question 6

What is the relationship between the GPI and GDP?

Answer 6

Genuine Progress Indicator has flattened since 1970s while GDP has continued to increase.

Question 7

What are the three indicators used by the Human Development Index?

Answer 7

1. Life expectancy
2. Education
3. GNI index

Question 8

Name 3 metrics other than GDP

Answer 8

1. Human Development Index
2. Better Life Index
3. Life Evaluation Index
4. U-Index
5. Sustainable Development Goals
6. Genuine Progress Indicator
7. Comprehensive/Inclusive Wealth
8. Planetary Boundaries
9. Doughnut Economics

Question 9

Why is the general public unaware that there are alternatives to GDP?

Answer 9

• Media mention GDP, often with powerful adjectives
• Technocratic institutions emphasize GDP by using facts
• There is no demand for a new system

Question 10

True or false: according to Rutger, it is better to use many imperfect measures than to try to create the one perfect indicator.

Answer 10

True.