Quality of life Flashcards
What are objective indicators for quality of life?
Objective indicators are measurable, factual data related to a person’s physical and social environment. These include tangible metrics such as income levels, employment status, access to healthcare, educational attainment, housing quality, and life expectancy. These indicators provide a more standardized, quantifiable way to assess quality of life, focusing on material conditions and societal factors.
Objective indicators with domains: Lists of predefined aspects deemed to be important for a good life ex.:
- HDI,
- capabilities,
- needs,
- health (life expectancy at birth),
- family life (divorce rate),
- community life (church attendance, union membership),
- material well being (GDP/cap, PPP),
- political stability and
security (ratings),
- climate and geography,
- job security (unemployment rate),
- political freedom (indexes of political and civil liberties),
- gender equality (ratio of male and female earnings)
What are subjective indicators for quality of life?
Subjective indicators focus on personal perceptions and individual experiences, assessing how people feel about their lives. These include self-reported well-being, happiness, life satisfaction, and emotional health. These indicators emphasize the importance of how people perceive their circumstances, which may vary even in similar material conditions.
Subjective indicators: Quality of life as a mental state, Wellbeing (happiness).
- The different domains of the objective indicators may be important of well-being, but lack final value.
- Satisfaction of human needs are not absolute but depend on expectations, adaptation and comparison to others.
- Depends on 50% genetics and early upbringings (personality), 10% Life circumstances (income, material possessions, physical environment), 40% Intentional activities (working towards our goals, socialising, exercising, meaningful work and leisure activities).
Societies with high SWB (=Subjective Well-being) have:
- Functioning democracy and institutions
- Equality
- Low unemployment
- High income/GDP (diminishing effect)
Subjective Well-being (SWB):
Affective component: to feel happy, to feel well
Cognitive component: Life satisfaction
These components are used separately of together (hybrid theory)
Explain in what ways these subjective indicators are fundamentally different from objective indicators. Why do they give different results?
The main difference between the two approaches is that objective indicators provide a universal measure of quality of life, while subjective indicators capture personal feelings and perceptions, making them more individualized. Both are valuable in providing a comprehensive understanding of quality of life.
The objective indicators may be important determinants of well-being but they lack final value compared with subjective indicators.This means that the subjective indicators are more subjective and built up by expectations, adaptation and comparison to others. The reason why they give different results is then because the subjective indicators are based on subjective measures such as life circumstances and genetics while the objective indicators are more based on facts and statistics.
Explain how Gross Domestic Product (GDP) is calculated using the expenditure approach
Expenditure approach: GDP = C + G + I + (X-M)
- C = Household consumption (products and services)
- G = Government spending
- I = Investment (buildings, mines, factories, machinery etc.)
- (X-M) = Export - Import
Not included:
- Companies buying from other companies
- Household buying from other households
- Financial products (the stock market)
- Informal economy (not taxed or monitored)
Explain how Gross Domestic Product (GDP) is calculated using the Product approach
Product approach: GDP = sum(value added)
for all production sectors
(the sum of all value added for all production sectors)
Discuss the relationship between GDP and quality of life
GDP is often linked to improvements in quality of life because economic growth typically enables higher income levels, better employment opportunities, and greater government spending on public services like healthcare, education, and infrastructure. Countries with higher GDP tend to offer more resources for improving living standards, reducing poverty, and enhancing overall societal well-being.
While GDP can indicate economic prosperity, it does not account for non-economic aspects of quality of life, such as:
- Health and well-being: GDP does not directly measure life expectancy, mental health, or physical well-being.
- Income inequality: High GDP can exist alongside significant income disparities, meaning not everyone benefits equally from economic growth.
- Environmental sustainability: GDP growth can sometimes lead to environmental degradation, reducing long-term quality of life.
- Work-life balance: GDP measures productivity but not the quality of labor conditions, such as job satisfaction, work stress, or leisure time.
As GDP focuses on economic output, it misses subjective indicators of well-being like happiness, fulfillment, or personal freedom. Nations with similar GDPs can have very different levels of life satisfaction, suggesting that other factors like culture, social support, and personal relationships are also crucial for quality of life.
What is Territorial accounting/production-base and what is its pros and cons?
The difference between Territorial Accounting and Consumption-Based Accounting of greenhouse gas (GHG) emissions lies in how emissions are measured and attributed to countries or regions. Territorial Accounting focuses on where emissions occur, so called “leave the pipe” and uses the method of the National Emissions Inventories to the UNFCCC
Pros/cons:
- Transparent and proven system
- Fits national policy making
- Potential risk of “carbon leakage” (production moving abroad)
- May create illusion of “green growth”
What is consumption-based accounting and what is its pros and cons?
Consumption-Based Accounting considers where the end use/final consumption of those goods and services takes place, offering different perspectives on a country’s true carbon footprint. Consumption-based accounting includes emissions from domestic final consumption and those caused by the production of imports, but excludes exports.
Pros/cons:
- Complex measurement system
- More uncertain estimates of emissions
- Reflects the actual effects of our lifestyles
What is Utility Maximization?
Utility maximization is an economic concept where individuals or consumers make decisions to obtain the highest possible level of satisfaction or “utility” from their available resources, such as income. In this process, they aim to allocate their resources among goods and services in a way that maximizes their personal satisfaction. Utility maximization assumes rational behavior, meaning consumers will evaluate various options and choose the combination of goods that yields the greatest utility within their budget constraints.
What is Positional Good?
A positional good is a type of good whose value is largely derived from its exclusivity or its social status. These goods often hold a higher perceived value because they are scarce or because ownership signals a certain status relative to others. Common examples include luxury items, exclusive real estate, or prestigious educational qualifications. Since not everyone can possess positional goods, their value is inherently competitive and can be affected by social and economic inequalities.
What is Ordinary Consumption?
Ordinary consumption refers to the day-to-day purchasing of goods and services that satisfy basic needs and provide regular utility without a strong emphasis on exclusivity or status. This includes essential items like food, clothing, and household goods. Unlike positional goods, the value of ordinary consumption items does not generally depend on social comparison but rather on fulfilling practical or personal needs.
Explain the Environmental Kuznets Curve (EKC) hypothesis
The Environmental Kuznets Curve (EKC) hypothesis suggests that there is an inverted U-shaped relationship between environmental degradation and economic development. According to this hypothesis, as an economy grows, environmental degradation initially increases, reaches a peak, and then begins to decrease as the country becomes wealthier and more developed. The EKC model indicates that environmental impact correlates with per capita income in three stages:
Early Stage (Economic Growth and Rising Environmental Degradation): At low income levels, economies focus on rapid industrialization, which tends to involve energy-intensive and polluting industries. Due to a priority on economic growth, limited regulatory frameworks, and reliance on natural resources, environmental degradation, such as air and water pollution, increases.
Turning Point: At a certain income level (the “turning point”), awareness of environmental issues rises, and the economy shifts toward cleaner, more efficient technologies. The public and policymakers start prioritizing environmental protection, leading to improved regulation and investment in green technologies.
Later Stage (Higher Income and Environmental Improvement): At higher levels of income, economies typically shift from manufacturing to services, which are less resource-intensive. The focus on sustainability and environmental quality intensifies, leading to reduced pollution and more sustainable practices.
Factors Influencing the EKC
Several factors influence whether and when an economy follows the EKC pattern:
Technology: Innovation can allow economies to grow while reducing environmental impacts.
Regulations and Policies: Strong environmental policies and enforcement can shift the EKC turning point earlier, reducing pollution sooner.
Social Awareness and Values: As incomes rise, people may demand better environmental quality, influencing policies and corporate behavior.
International Trade and Outsourcing: Some countries may reach a turning point by outsourcing polluting industries to countries with lower environmental standards.
