...between GDP and Quality of life Subject name: Macroeconomics Teacher’s name: Dr. Nguyen Trong Hoai Student’s names: 1) Ho Tran Thuy Nguyen 2) Nguyen Le Hoang Phuong 3) Phan Hoang Anh Thu 4) Huynh Thi Thu Ha 5) Le Phuoc Thanh Tin 6) Loi Kim Chau 7) Han Khanh Phương 8) Le Hoang Vu 9) Vu Quang Huy Date due: 15/05/2011 Table of Contents I/ Introduction: 3 II/ GDP- a powerful tool for economics measurement: 4 III/ Why is GDP not a perfect measure of well-being? 7 1. Leisure time: 7 2. The environment: 8 3. Non-market activity: 10 IV/ Conclusion: 11 I/ Introduction: It is no doubt that if people want to judge a person is doing economically, they usually first look at his or her income. Similarly, when talking about an economic condition of a country, it is not surprise that people most frequently look at the average income of that nation or in other word, Gross Domestic Product (GDP) per capita. To be more specific, the most commonly accepted method of comparing generalized differences in quality of life on a whole between nations is to use GDP per capita on purchasing power parity (PPP) basis in current international dollars. In our report, we propose to clarify the usefulness (the reason why economists use GDP per capita as a major measurement) as well as the limitation when using GDP to measure the economic well-beings of a nation. Before looking at pros and cons of GDP, it is necessary to know how GDP and...
Words: 2868 - Pages: 12
...GDP vs. HDI- the adequate measure of societal well-being Introduction “We need a new economic paradigm that recognizes the parity between the three pillars of sustainable development. Social, economic and environmental well-being are indivisible. Together they define gross global happiness,” said the Secretary-General Ban Ki-moon in the high-level meeting – “Happiness and Well-being: Defining a New Economic Paradigm” at UN Headquarters in New York on the 2sd, April, 2012. These words remind us of the fact that not just economic well-being but social well-being (as much as enviromental well-being) is also an essential factor in rating a nation’s happiness, as well as that of a man. Therefore, the important thing to do now is to find a way to measure social well–being, and should that be Gross Domestic Product (as some country has done)? However, in actual fact, there are people who believe that GDP is inadequate and it should be replaced by the Human Development Index (HDI). We find this opinion very convincing. The United States Institue of Peace (USIP) defined “social well-being” as “an end state in which basic human needs are met and people are able to coexist peacefully in communities with opportunities for advancement.” But what is an “end state”? And we can base on which factors to evaluate it? To answer these questions, the USIP also pointed out the 4 neccesery conditions to achive this “end state”, which were: Access To and Delivery of Basic Needs Services, Access...
Words: 1767 - Pages: 8
...Introduction Gross Domestic Product (GDP) is defined as the market value for final goods and services produced in an economy over a certain period. There are three main approaches to GDP: production, expenditure and income. Although there are many components that make up these three categories, the basic principle according to national accounting is that Production=Expenditure=Income. GDP is used very regularly when talking about an economy’s wellbeing, it is useful for seeing if an economy is expanding or contracting and if so at what rate. Although GDP can be very useful, there are certain factors that it overlooks which are important. I am going to discus whether or not GDP is still a useful and reliable measure of the economy’s welfare. Why is GDP used so much? Although GDP may not be the only important figure giving all relevant information about an economy, it is certainly one useful tool in seeing the value of goods and services produced. Economic growth is defined as the increase in market value of goods and services produced in an economy over time. As GDP measures exactly this value, it makes perfect sense that it is used to measure economic growth. GDP is often converted into a single currency (often US dollars) to allow comparison between different economies. Real GDP is also adjusted for inflation so that a change in the price of goods does not give an inaccurate picture of the true growth of the economy. When interpreted well, the real GDP can be used to compare economies...
Words: 1222 - Pages: 5
...putting greater significance on things humanity seems to forget from time to time, like human well-being and the environment. Sandwiched in between China and India is a small country called Bhutan, a country that takes a different approach when looking at the well-being of its citizens. In 1972, 17 year-old Jigme Singye Wangchuck became the 4th Dragon Emperor of Bhutan, and implemented a new system that structures an economy around the happiness of its population. Gross National Happiness (GNH) is the sadly unorthodox alternative to GDP, based on Buddhist beliefs; it puts value in the happiness, not money when valuing a country. It is the only country in the world that uses this system of measurement. Although this system has the best intentions for the people and its surrounding environment, it is not the best overall strategy because it doesn’t adequately incorporate economic growth, which is very important to a country’s well-being. At first glance it seems like a truly distinct, altruistic approach to GDP but it would not be applicable to the entire world because of its ambiguity in the basic measurement of happiness. Right now Bhutan seems to be moving upstream, but because of the powerful influence of western society, Bhutan’s values may stray and ultimately lead their utopian society into the same direction as the rest of the world. Happiness is a key ingredient to well-being. How do you...
Words: 2293 - Pages: 10
...measured. I’ve been conventionally educated that wealth is classified into three: personal property, monetary savings and capital wealth. However, Sir Partha Dasgupta of Cambridge University argued that these classifications may bring chaotic measures when in the event when wealth of nations is the focus. He is right! What if the real deal is being talked about instead of the stereotyped meaning of wealth? How can we compare China at Japan? USA and Britain? In terms of GNP? Of course not! GNP can never be subjected as a measure of national wealth because there are still resources that are yet to be considered. But its sad to know that economists settled for GNP. Sir Partha designated three kinds of wealth in which a nation is really measured. Signifying the idea of comparative advantage and absolute advantage, the results were unpredictable. To measure wealth an inclusion of three kinds of asset is done: “manufactured”, or physical, capital (machinery, buildings, infrastructure and so on); human capital (the population’s education and skills); and natural capital (including land, forests, fossil fuels and minerals). I believe that this inclusion will really make a picture, not exactly but close to perfect, of how wealthy a nation is. At the onset, Japan as compared to other large economies topped the scale. As of this moment, I am overwhelmed with how the Land of the Rising Sun managed to overcome the problem of having scarce natural...
Words: 1604 - Pages: 7
...OUTLINES PRINCIPLES OF ECONOMICS Other Books in Schaum’s Easy Outlines Series Include: Schaum’s Easy Outline: Calculus Schaum’s Easy Outline: College Algebra Schaum’s Easy Outline: College Mathematics Schaum’s Easy Outline: Discrete Mathematics Schaum’s Easy Outline: Differential Equations Schaum’s Easy Outline: Elementary Algebra Schaum’s Easy Outline: Geometry Schaum’s Easy Outline: Linear Algebra Schaum’s Easy Outline: Mathematical Handbook of Formulas and Tables Schaum’s Easy Outline: Precalculus Schaum’s Easy Outline: Probability and Statistics Schaum’s Easy Outline: Statistics Schaum’s Easy Outline: Trigonometry Schaum’s Easy Outline: Business Statistics Schaum’s Easy Outline: Principles of Accounting Schaum’s Easy Outline: Applied Physics Schaum’s Easy Outline: Biology Schaum’s Easy Outline: Biochemistry Schaum’s Easy Outline: Molecular and Cell Biology Schaum’s Easy Outline: College Chemistry Schaum’s Easy Outline: Genetics Schaum’s Easy Outline: Human Anatomy and Physiology Schaum’s Easy Outline: Organic Chemistry Schaum’s Easy Outline: Physics Schaum’s Easy Outline: Programming with C++ Schaum’s Easy Outline: Programming with Java Schaum’s Easy Outline: Basic Electricity Schaum’s Easy Outline: Electromagnetics Schaum’s Easy Outline: Introduction to Psychology Schaum’s Easy Outline: French Schaum’s Easy Outline: German Schaum’s Easy Outline: Spanish Schaum’s Easy Outline: Writing and Grammar SCHAUM’S Easy OUTLINES PRINCIPLES OF ECONOMICS Based on Schaum’s...
Words: 38596 - Pages: 155
...Understanding the Economics Standards for teachers in grades 9–12 Economics studies how people, acting as individuals or in groups, decide to use scarce resources to satisfy wants. This fundamental economic concept of scarcity is at the core of the discipline. There are never enough natural resources, human resources, or capital resources (man-made goods such as tools, equipment, machinery, factories) to produce everything society wants. Therefore, choices must be made on what to produce, how to produce, and for whom to produce. Choices must also be made at a personal level. There never seems to be enough money or time to have or to do everything one wants. Economics is a way of thinking, a science of making choices. Economists examine the decision-making processes of individuals, businesses, markets, governments, and economies as a whole. An understanding of economic principles helps people to: • Consider not only the short-term effects of a decision, but also its long-term effects and possible unintended consequences; • See the connections between personal self-interest and societal goals in order to understand how individual and social choices are made in the context of an economy; • Analyze how social goals, such as freedom, efficiency, and equity, impact public policies. Because of increasing interdependence and globalization, everyone in the United States needs to be aware of the issues in the global economy, their role in that system, and be able...
Words: 7540 - Pages: 31
...Introduction to Economics: Lecture Notes Margarita Rubio IE University Fall 2012 2 3 CONTENTS 1 Introduction to Economics The Fundamentals of Economics . . . . . . . . . . . Microeconomics, Macroeconomics and Econometrics Inputs and Outputs . . . . . . . . . . . . . . . . . . Opportunity Costs . . . . . . . . . . . . . . . . . . Positive Economics versus Normative Economics . . The three Problems of Economics Organization . . The ten Principles in Economics . . . . . . . . . . . Economics as a Science . . . . . . . . . . . . . . . . How to read graphs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5 6 6 6 6 7 7 8 11 15 15 15 17 19 20 20 21 22 22 22 23 23 23 24 25 26 31 31 33 34 35 35 38 40 40 43 47 47 47 48 48 48 2 Microeconomics Supply and Demand . . . . . . . . . . . . . . . . . . . . . . . . The Demand Schedule . . . . . . . . . . . . . . . . . . . . The Supply Schedule . . . . . . . . . . . . . . . . . . . . . Equilibrium of Supply and Demand . . . ...
Words: 16259 - Pages: 66
...Running head: INCOME DISTRIBUTION IN THE UNITED STATES Income Distribution in the United States and the Lorenz Curve 1 Market economies are favored and well-known for generating macroeconomic growth and progress in industrialized nations, such as the United States. Numerous academic studies and economic research have been done not only to measure economic growth, but also to analyze any disparities in income distributions among the general American population. This paper will examine trends and patterns of American wages since the 1970s, focusing on shifts in income distributions to see if these shifts can be interpreted as income inequality across different sectors of our society. Furthermore, this paper will study two important and interlinked methods of measuring income inequality, which are the Lorenz Curve and the Gini Coefficient Index. The Executive Branch of our federal government and the U.S. Congress keep a close eye on income distributions throughout the entire nation. These bodies rely heavily on data collected and analyzed by non-partisan agencies such as the U.S. Census Bureau, the Internal Revenue Service (IRS), the U.S. Bureau of Economic Analysis, the Congressional Budget Office (CBO), and academic institutitions that provide data and statistical analysis to assist in economic and budgetary decisions made by elected officials concerning a wide array of policy issues such as taxes, social insurance programs and other issues that impact the overall economy...
Words: 2108 - Pages: 9
...Contents 1. Introduction to Economics 1 What is Economics? 2 Studying of Choice in a World of Scarcity 4 The Cost-Benefit Principles 6 Absolute Advantage vs. Comparative Advantage 9 2. Law of Demand and Supply 13 Introduction to Demand and Supply 14 The Demand Curve 15 The Supply Curve 18 Market Equilibrium 21 Shift in Demand 25 Shift in Supply 26 3. Elasticity of Demand and Supply 29 Price Elasticity of Demand 30 Types of Elasticity of Demand 31 Determinants of Price Elasticity of Demand 34 Price Elasticity of Supply 38 Types of Elasticity of Supply 39 Determinants of Price Elasticity of Supply 41 4. International Trade 44 Introduction to International Trade 45 International Trade Restrictions 48 Arguments in Favour of Restricting Trade 53 Non-economic Arguments for Restricting Trade 56 Problems with Trade Protection 58 5. Market Structures 62 Introduction to Market Structure 63 Perfect Competition 65 Monopoly 68 Monopolistic Competition 72 6. Macroeconomics – GDP, Unemployment, Money and Central Bank 77 Introduction to Macroeconomics 78 GDP 81 Unemployment 84 Inflation 89 [pic] |Principles of Economics | |BM2 | A WORD OF WELCOME ...
Words: 12008 - Pages: 49
...Health in the World Is Complex Introduction In this assignment on health care in regards to the health care system in the United States is quite complex any everybody would understand that. If I was a health care administrative professional, several factors influence the industry. Health care is said to be, “the prevention, treatment, and management of illness and the preservation of mental and physical well-being through the services offered by the medical and allied health professions.” The U.S health care system has evolved so much over the last few decades and more changes are geared towards the health care system. Our health care system is not perfect but there some forces that have affected the development on the health care system in the U.S. The U.S health care system can be looked at two ways when it comes to the development of its affect on the U.S as being flawed and useful. When you think of the U.S health care system, you think of the impact as well as the forces that have affected the development of the health care system in the United States. Assessing Regulations While assessing and viewing the video I was quite surprised that U.S. influences claims and facts assessed in the video are interesting. The first slide in the video presentation states that sixty billion of U.S. pharma patent revenue was set to expire in 2012. Also the video outlined that 75% are specialty medications and then there was decline starting in 1996 all the way down to the year...
Words: 1828 - Pages: 8
...AFFECTED TOURISM INDUSTRY GLOBALLY. WHAT MEASURES CAN BE TAKEN BY UK HOTELS?‟ “CASE STUDY: MARRIOTT GROUP OF HOTEL‟S EFFORT TO ATTRACT MEDICAL TOURISTS” RAMAMOORTHY PANDIAN STUDENT ID: 09004669 DISSERTATION SUPERVISOR THOMAS REEVES SUBMITTED IN PART FULFILLMENT OF THE REQUIREMENT FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION UNIVERSITY OF WALES INSTITUTE, CARDIFF FEB 2010 1 ACKNOWLEDGEMENT First and foremost, I would like to thank my supervisor Thomas Reeves for his valuable professional advice and guidance as well as for rendering his kindness, endless patience and continuous encouragement towards my dissertation. I would like to thank interviewees in the Marriott Group of hotels and its branches, without which this study could not have been reached its conclusion. A handful of thanks to all the lecturers of my concern for their teaching, without them, I can‟t learn so much knowledge. This dissertation could not have been completed without continuous support, encouragement, and caring of all my friends and my family members. I would wish them many a thanks too. Finally, I would like to express my sincere appreciation to those who provided me with great support and encouragement during my studies in UK. Thanks again to all of them. 2 ABSTRACT The aim is to find out the most possible means that recession would affect the tourism industry globally and also to pay attention towards the various measures taken over by the UK hotels to overcome...
Words: 19699 - Pages: 79
...Ronald Hopwood , was created to act as a moral basis for the members of Britain’s Royal Navy to live by. As time went on, many navies and other military forces have embodied this law and have applied it to many aspects in life, especially in international relations. If one country is failing, then its allies and surrounding nations are failing as well. Burkina Faso currently has the world’s...
Words: 2794 - Pages: 12
...（E-mail:adrianachirinos20@hotmail.com) Abstract: The last decade has presented a new global economic scenario lead by emerging markets. BRICS countries (comprised by Brazil, Russia, India, China and South Africa) have been at the forefront in this phenomenon. During these years, the real Gross Domestic Product (GDP) growth of the world (annual percent change - A% c) averages 3,83. It is worth mentioning that the above referenced countries reached 6,01 (157,02% more); and Advanced Economies - not yet recovered since the last financial crisis - reached 1,6 (47,78%). Meanwhile, different measuring models have found that in the world, just the top 20% of the population controls over 70% of the global revenue. These economies have been growing as well. The importance of this investigation is answering the questions: Are they reversing this lack of equality trend? And, Would be relevant to add equity in the development agenda?. This paper offers an analysis of these points and studies them as a strategy for sustainability and continuous growth. Key words: BRICS countries growth; National income distribution; Equity in the development agenda. 1. Introduction BRICS Countries are leading the growth of the economy in the world, and have done so for over 10 years. The International Monetary Fund (IMF) projected that from 2013 to 2017 it will maintain its growth at least 26% above World Growth GDP. Note: GDP, will be the measure utilized in this paper when referring to growing economies. This information...
Words: 2695 - Pages: 11
...RESOURCE | 1 ECONOMICS RESOURCE | 1 ECONOMICS 2009-10: FUNDAMENTALS OF ECONOMIC THINKING Table of Contents Preface to the Economics Resource .................................................................................. 5 Fundamentals of Economics ............................................................................................ 7 The Basic Economic Problem—Scarcity ............................................................................................ 8 Production of Goods and Services .................................................................................................... 10 Increasing Costs ............................................................................................................................... 12 The Factors of Production ............................................................................................................... 14 Benefit-Cost Analysis – Marginal Decision-Making ......................................................................... 15 Marginal Utility and Waffles ............................................................................................................ 17 More on Marginal Utility and the Effect of Prices ............................................................................ 19 Individual and Social Goals .............................................................................................................. 20 Positive and Normative Economics .................
Words: 65448 - Pages: 262
