Download Economic Performance Indicators Discussion Questions

Economic Performance Indicators
Discussion Questions
1. List the six broad social goals and provide the
countries that represented the highest and
lowest success for each.
2. What generalizations can be made from this
data about the level of economic freedom in a
country and the general welfare of its citizens?
3. Rate the countries from most market
orientated to least.
4. Why are so many countries in the world
moving toward a more market-orientated
economy?
Measurements of GROWTH
• GNP – Gross National Product
– Measures total market value of all final goods
and services produced by a country in one
year
• GNP/capita average annual growth rate –
measures increase/decrease in a
country’s output of final goods and
services
Measurement of STABILITY
• GDP Imp
licit Deflator – measures the
average annual rate of price changes in a
nation’s economy
Measurement of FREEDOM
• Index of Economic Freedom – the lower
the index score, the higher the degree of
economic freedom in the country
Measurement of SECURITY
• Unemployment Rate – 4-5% reflects
frictional unemployment rates in U.S.
– Higher rate = less economic security
Measurements of
STANDARD OF LIVING
• Infant mortality rate – higher rate = lower
standard of living
• Literacy rate – higher rate = higher
standard of living
Measurement of EQUALITY
• Gini Index – measures income equality; on
a scale of 0 – 100
– 0 = perfect equality (everybody earns the
same income)
– 100 = perfect inequality (richest person
receives ALL income; all other citizens receive
nothing)