Economic Performance Indicators Discussion Questions

1
Economic Performance IndicatorsDiscussion
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?

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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 countrys output of final
  goods and services

3
Measurement of STABILITY

• GDP Imp licit Deflator measures the average
  annual rate of price changes in a nations economy

4
Measurement of FREEDOM

• Index of Economic Freedom the lower the index
  score, the higher the degree of economic freedom
  in the country

5
Measurement of SECURITY

• Unemployment Rate 4-5 reflects frictional
  unemployment rates in U.S.
• Higher rate less economic security

6
Measurements ofSTANDARD OF LIVING

• Infant mortality rate higher rate lower
  standard of living
• Literacy rate higher rate higher standard of
  living

7
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)