Developing a Broader Wellbeing Index
Imagine you are advising a government that wants to measure citizen wellbeing more accurately than just tracking the value of goods and services produced each year. Propose two distinct, non-monetary indicators that could be included in a new 'National Wellbeing Index'. For each indicator, briefly justify how it captures an aspect of life quality not reflected in standard economic statistics.
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Social Science
Empirical Science
Science
Economy
Economics
CORE Econ
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Introduction to Microeconomics Course
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Cognitive Psychology
Psychology
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Imagine two hypothetical countries. Country A has a GDP per capita of $60,000, achieved through extensive industrial activity that has led to significant air pollution and the loss of natural forests. Country B has a GDP per capita of $45,000, but has preserved its natural environment, resulting in clean air and large, accessible public parks. Which of the following statements provides the most accurate assessment of the overall wellbeing of the populations in these two countries?
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An increase in a country's total annual sales of goods and services is always a reliable indicator of an improvement in the average citizen's overall quality of life.
A city government is considering three proposals to improve citizen wellbeing: 1) a direct cash payment to all residents, 2) a project to clean up a polluted local river, and 3) a subsidy to help more people buy their own homes. From the perspective of measuring economic progress, which of these proposals' direct, ongoing benefit to citizen wellbeing would be the most difficult to capture using standard annual economic statistics?
Match each component of personal wellbeing to the way it is typically treated in standard national economic accounts (like GDP).
Developing a Broader Wellbeing Index
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