Chapter 8.5

Question 1

National income statistics

Answer 1

Statistical data used to measure national income and output and other measures of economic performance

Question 2

Why are national income statistics not accurate measures of “true” value of output?

Answer 2

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

Question 3

Why are measures of the value of output not accurate measures of economic well-being?

Answer 3

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

Question 4

Alternative measures of well-being

Answer 4

OECD Better Life Index
Happiness Index
Happy Planet Index

Question 5

OECD Better Life Index

Answer 5

A number of factors selected by member countries as factors that make a better life to measure the well-being of a country

Question 6

Happiness Index

Answer 6

Uses various dimensions to determine the happiness of a country’s population

Question 7

Happy Planet Index

Answer 7

Used to measure the sustainable well-being of a country