Chapter 12

Question 1

Sustainable Development

Answer 1

practising stewardship of the environment and resources so that future generations are able to achieve prosperity

Question 2

Gross Domestic Product (GDP)

Answer 2

•Widely used to measure the health of a country’s economy and the prosperity of its people standard of living
•Represents the total dollar value of all goods and services produced over specific time
•GDP (per person) is averaged over the number of people in the country – how much money individuals in a country have to live on
•Cons of GDP:
-Everyone is counted (including children) also disparity between a CEO and a minimum wage worker
-Doesn’t reflect the economic toll on the environment
-Doesn’t measure income inequality

Question 3

Human Development Index

Answer 3

•Created by the United Nations •Development Program to measure the quality of life in UN member countries
•Are used to classify countries as being developed, developing, ir under developed
•Measures how economic policies affect the quality of life
•Based on three main categories:
-Longevity: life expectancy
-Knowledge: school enrolment and literacy
-Standard of Living: measured in GDP per person

Question 4

Gross National Happiness Index

Answer 4

•Created in Bhutan
•Based on Buddhist spiritual values rather than economic growth
•Focus is on inner happiness and well-being of people in the country (spiritually and materially)
•Measures: psychological well-being, health, time use, education, cultural diversity and resilience, good governance, community vitality, ecological, diversity and resilience, living standard

Question 5

Sustainable Prosperity - Challenges and Opportunities

Answer 5

•Economic Growth
•Trade Liberalization
•The Knowledge Economy
•Privatization
•Foreign Investment

Question 6

Economic Growth

Answer 6

•Depends on the production and sales of goods on a ever increasing scale of volume and speed
•Many economists believe that continuous economic will lead to prosperity

Question 7

Trade Liberalization

Answer 7

•Has made many people and countries very rich, but it has left even more people behind it ever increasing income gap

Question 8

The Knowledge Economy

Answer 8

•Refers to the businesses and people who use knowledge, research, education, new ideas, and information technology for practical purposes

Question 9

Privatization

Answer 9

•Privatizing services
•Pushed by those who agreed with Hayek and Friedman
•These poor countries behind because they can’t afford the high tech expertise required

Question 10

Foreign Investment

Answer 10

•Globalization opens borders and countries are now open to corporations and investors that come from other places
•May increase business and productivity, but it takes money out of the host country to be spend or save somewhere else

Question 11

Choices Associated with Sustainable Prosperity

Answer 11

•The ultimate success or failure in these areas will depend on the choices made by international organizations, government, industry, and individuals

Question 12

Sustainable Development

Answer 12

•Sustainability of the human population
•Sustainability of the environment (threat to sustainability of the earth environment is climate change)