problem set 5-answers

problem set 5-answers - Samantha Green DIS 06 TA: Alex...

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Samantha Green Problem Set 5 DIS 06 – TA: Alex Racketa due: 10/26/07 1. a) According to the website, GDP is not a good measure of economic welfare. It measures only total economic activity, and does not take into account quality of life. b) The Index of Sustainable Economic Welfare, or ISEW, is an attempt to better measure economic welfare. Unlike GDP, it attempts to take into account increases in quality of life. It makes a subtraction for air pollution caused by economic activity, and makes additions to count unpaid household labor (i.e. cleaning or babysitting). It also includes areas such as income inequality, environmental damage, and depletion of environmental assets. It is a better measure of the standard of living because it takes into account not just how much we produce (as with the GDP), but also the economic welfare of the people. 2. a) My global/ecological footprint is 15 acres. b) The factors that contribute to global footprint are food, mobility, shelter and
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This note was uploaded on 04/07/2008 for the course ECON 162B taught by Professor Christianson during the Fall '08 term at Binghamton University.

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