ECON 100 Measuring Economic Policies and Goals

St. Charles Community College 
ECON 100   Survey Economics
Indicators for Measuring Economic Goals


Goals Indicators of Success Indicators of Failure



Efficiency*
  • High productivity.
  • Simple waste.

  • An efficient allocation of resources.
  • Poor management.

  • Freedom of choice for people as consumers, workers, managers, and investors.
  • Narrow, restricted choices.


  • Governmental policies that restrict growth.


  • Cultural attitudes that restrict growth.

 

  * Definitions:

                Allocative efficiency:  An efficient economy is one that produces what people want at the least possible cost. Efficiency has been achieved when there is no way resources can be reallocated to increase the production of one good without decreasing the production of another. 


Equity
  • Rewards for efforts and talents.
  • Unequal opportunity.

  • Equality of result and opportunity.
  • Extreme inequality or wealth and income not related to productivity or effort.


  • Unequal access to good jobs.  

Stability
  • Full employment.
  • Chronic, long term unemployment.

  • Stable or declining prices.
  • Price inflation.

  • Steady jobs for all, suited to workers’ skills and preferences. 
  • Workers assigned to jobs that do not match their skills.

  • Peace.
  • Civil strife.

Growth**
  • Growth of capacity and output.
  • Low growth rates.

  • New technology and products.
  • Stagnant products and technology.

  • Increased number of jobs.
  • Chronic long-term unemployment.

  • Increased number of skilled jobs.
  • Continuing lack of skilled jobs.

 

     ** Comment:

There are two kinds of growth: intensive and extensive. Extensive has to do with quantity, and intensive has to do quality.