ECON-2000 Lecture Notes - Lecture 26: Creative Destruction, Black Market, Environmental Quality
Document Summary
Econ lecture 26: shortcomings of gdp and unemployment. Up to 45% in some developing countries. Quality of the environment: gdp is unable to distinguish how goods are produced, country a. Clean energy, clean air: country b. No environmental standards, health problems: the gdp of country a and b is the same, but the well-being isn"t. Gdp only measures average: does not include the distribution, some people may produce more, some less. Leisure time: gdp does not capture how long it takes to produce goods and services. Other measures of economic well-being: life-expectancy, education levels, environmental quality, access to healthcare, crime rate. Reality: alternative measures are difficult to quantify, gdp often correlated with most of these other way of measuring quality of life anyway. Unemployment is a drain on society and very difficult for certain individual households. Structural unemployment: changes in economy over time: as the economy progresses, certain jobs are destroyed- joseph.
