Genuine Progress Indicator Concepts

The video discusses the inefficiency of GDP as a measure of living standards and introduces the Genuine Progress Indicator (GPI) as an alternative. GPI, developed in the late 1980s, evolved from the Index of Sustainable Economic Welfare. It adjusts GDP data to reflect both positive and negative effects of economic activities, considering non-material aspects like environmental damage and inequality. While GPI offers a more comprehensive view, it is subjective and costly to produce.

Why is GDP considered an inefficient measure of living standards?

• It is not recognized globally.

• It only measures economic growth.

• It does not account for non-material aspects.

• It is too complex to calculate.

What does the Genuine Progress Indicator (GPI) aim to measure?

• Only economic growth

• Both material and non-material living standards

• Only environmental impact

• Only non-material living standards

From which measure did the GPI evolve?

• Index of Economic Growth

• Index of Sustainable Economic Welfare

• Index of Global Happiness

• Index of National Wealth

How does GPI adjust GDP data?

• By adding only positive effects

• By subtracting only negative effects

• By ignoring externalities

• By making both positive and negative adjustments

Which of the following is a positive aspect of GPI?

• It is cheaper to produce than GDP.

• It considers non-material aspects.

• It is difficult to compare between nations.

• It ignores environmental damage.

What is a key advantage of GPI over GDP?

• GPI is easier to calculate.

• GPI is universally accepted.

• GPI focuses only on economic growth.

• GPI includes ongoing services from durable goods.

What is a major disadvantage of GPI?

• It does not use GDP data.

• It is too objective.

• It only measures negative effects.

• It is subjective and costly to produce.

Why is GPI considered subjective?

• It is based on historical data only.

• It does not involve any human input.

• It requires discretionary judgments for adjustments.

• It uses fixed values for adjustments.

What makes GPI more costly to produce than GDP?

• It requires extensive surveys.

• It uses outdated data.

• It is calculated annually.

• It is not recognized by governments.

What is the most important distinction between GDP and GPI?

• GPI includes subjective elements.

• GDP includes non-material aspects.

• GPI is more objective.

• GDP is more subjective.