ECON 104 Study Guide - Midterm Guide: Genuine Progress Indicator, Gross Domestic Product, Human Development Index
15 Aug 2016
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Genuine progress indicator (gpi): created by redefining progress in 1995 as an alternative to the gross domestic product (gdp). The gdp treats such expenses as additions to well-being. By contrast, the gpi subtracts the costs arising from crime: changes in leisure time: as a nation becomes wealthier, people should have more latitude to choose between work and free time for family or other activities. In recent years, however, the opposite has occurred. The gdp ignores this loss of free time, but the gpi treats leisure as most americans do as something of value. When leisure time increases, the gpi goes up; when americans have less of it, the gpi goes down. Human development index: is a summary measure of average achievement in key dimensions of human development: a long and healthy life, being knowledgeable and have a decent standard of living.
