Chapter 8.5 Flashcards
National income statistics
Statistical data used to measure national income and output and other measures of economic performance
Why are national income statistics not accurate measures of “true” value of output?
Don’t include non-marketed output
Don’t include output sold in underground markets
Don’t take into account quality improvements in goods and services
Don’t account for the value of negative externalities
Don’t take into account the depletion of natural resources
Different price levels
Why are measures of the value of output not accurate measures of economic well-being?
Don’t make distinctions about the composition of output
Don’t reflect achievements in levels of education, health and life expectancy
Don’t provide information on the distribution of income and output
Don’t take into account increased leisure
Don’t account for quality of life factors
Alternative measures of well-being
OECD Better Life Index
Happiness Index
Happy Planet Index
OECD Better Life Index
A number of factors selected by member countries as factors that make a better life to measure the well-being of a country
Happiness Index
Uses various dimensions to determine the happiness of a country’s population
Happy Planet Index
Used to measure the sustainable well-being of a country