chapter 4 Flashcards
developed economy
igh-income levels, extensive industrialization, advanced
technological infrastructure, and high standard of living.
developing economy
low-income levels, slight industrialization, incomplete
infrastructure, and lower standards of living. Significant gaps between developed and
developing economies
emerging economies
Different economies experience different levels of
development at different rates. Some are fast-growing, such aa China, Mexico,
Indonesia, and the Philippines. Also referred to as economies in transition, emerging
markets. Their financial systems, political institutions, and market infrastructure steadily
modernize.
market liberalization
the lessening of government regulations. Market liberalization promotes foreign investments and growing exports,
deregulation and privatization improve business efficiency, and expanding economic
freedoms encourage entrepreneurialism.
economic freedom
measures the absence of government coercion or
constraint on the production, distribution, or
consumption of goods and services
the economic freedom index
estimates economic freedom in 180
countries worldwide and measures the degree that a nation accepts Adam Smith’s thesis that “basic institutions that protect the liberty of individuals to pursue their own economic interests result in greater prosperity for the
larger society.”
the value of economic freedom
Economies that implement policies
that institute economic freedom enjoy a range of benefits. Economic
freedom supports higher growth in the short- (5 years), medium- (10
years), and long-term (20 years). It supports higher personal income and higher living standards
the prevalence of economic freedom
North America (Canada,
Mexico, and the United States) enjoys the highest levels of economic
freedom.
gross national income (GNI)
measures the value of all production in
the domestic economy together with the income that the country receives from
other countries (in the forms of profits, interest, and dividends), less the same sorts of
payments that it has made to other countries
Gross domestic product (GDP)
is the total market value of goods and services produced by workers and capital within a nation’s borders
Gross national product (GNP)
is the total value of all final goods and services produced within a nation in a particular year
happynomics
encourage incorporating elements of psychology, health,
security, and sociology-redefines the traditional performance standards of wealth, income, or profit to reflect principles of well-being, quality of life, and life satisfaction.
your better life index (YBLI)
evaluates economic performance in
terms of matters that people believe are important (e.g., housing, jobs, social relationships, health, family etc. ) but that fall beyond the narrow scope of monetary measures
gross national wellness (GNW)
measures a country’s capacity to
promote individual well-being in terms of mental, health, work, income, social relations, economic, retirement, political, and environmental standards.
happy planet index (HPI)
progress is defined not in terms of
economic development, but through success in achieving a sustainable well-being for all
