p.9
Economic Models and Theories
What is the result of implementing demurrage?
Money becomes a better medium of exchange and worse as a commodity itself.
p.8
Economic Models and Theories
What stage do low income, high growth countries fall into according to the S curve?
They are in the take-off stage.
p.10
Neoliberalism and Globalization
What is the relationship between globalization and development according to the text?
Globalization is equated with development, and accelerated globalization is seen as the only path to development.
p.6
Human Nature and Economic Behavior
What is loss aversion?
A strong preference to avoid losses rather than to achieve equivalent gains.
p.6
Human Nature and Economic Behavior
What is the difference between extrinsic and intrinsic motivation?
Extrinsic motivation is driven by external outcomes like status or money, while intrinsic motivation is driven by the inherent satisfaction of the activity itself.
p.1
Inequality and Human Deprivation
What does the inner border of the Doughnut represent?
The Social Foundation, which includes the bare minimum needs of all.
p.8
Economic Models and Theories
What does Larry Summers refer to as the 'age of secular stagnation'?
A situation where some economies are already at the top of the S curve.
p.10
Inequality and Human Deprivation
Who benefits from globalization according to the review?
Profits from globalization stay with the wealthy elite, with no redistribution to meet social needs.
p.7
Embedded Economy Concept
What role does interdependence play in human society?
Humans are the most social species and are interdependent.
p.4
Human-Centered vs. Earth-Centered Goals
How does the Embedded Economy view the household?
The household is seen as core to sustaining essentials through unpaid, undervalued, and often exploited labor.
p.11
Neoliberalism and Globalization
What is a criticism of Transnational Corporations (TNCs) regarding their profits?
TNCs often relocate profits to their country of origin, which reduces earnings for developing countries.
p.4
Sustainable Development and Future Challenges
What was the impact of neoliberal economic policies on the Index of Sustainable Development in Britain from 1970 to the 1990s?
There was a decline in the Index of Sustainable Development.
p.2
Embedded Economy Concept
What do households supply in the economic cycle?
Households supply labor and capital in exchange for wages and profit, which they use to buy goods and services.
p.7
Ecological Ceiling and Planetary Boundaries
What metaphor is used to describe the relationship between societies and the living world?
Sower-reaper, which embeds us in a web of life where societies co-evolve with the living world.
p.1
Ecological Ceiling and Planetary Boundaries
What is meant by 'Critical Planetary Degradation'?
Conditions that occur when we exceed the Ecological Ceiling, such as climate change and biodiversity loss.
p.9
Embedded Economy Concept
What is Evergreen Direct Investing (EDI)?
Acceptable, resilient financial returns from mature low- to no-growth enterprises.
p.3
Economic Models and Theories
How has GDP growth been perceived in terms of policy?
It has shifted from being a policy option to a political necessity, becoming a de facto goal.
p.5
Inequality and Human Deprivation
What is the impact of migration on developing countries?
Developing countries are often crippled by the need to import products they can produce, leading to economic challenges.
p.6
Human Nature and Economic Behavior
What are the two main axes of Shalom Schwartz's value theory?
Openness to change vs. Conservation and Self-enhancement vs. Self-transcendence.
p.11
Ecological Ceiling and Planetary Boundaries
What environmental issues are associated with TNCs?
TNCs bring environmental problems through unsafe and polluting production methods, breaching environmental and labor standards.
p.4
Embedded Economy Concept
What does the Embedded Economy concept emphasize?
It combines various schools of thought, viewing the economy as embedded within society and the living world, moving away from a focus solely on money flows.
p.2
Embedded Economy Concept
How do banks, government, and trade affect income in the economy?
They divert income as leakages to injections; banks receive income as savings and return it as investment, government collects taxes and spends publicly, and trade involves imports and exports.
p.7
Human Nature and Economic Behavior
What skills are highlighted as essential for thriving communities?
The skills of trusting, reciprocating, and cooperating.
p.6
Inequality and Human Deprivation
Why are monetary incentives considered ineffective in addressing human and ecological deprivation?
They often overestimate the effectiveness of price mechanisms and underestimate the importance of values, reciprocity, and social networks.
p.2
Doughnut Economics Overview
What is the first way to think like a 21st-century economist?
Change the goal from capitalism measures to human-centered and Earth-centered goals, as proposed in Doughnut Economics.
p.4
Human Nature and Economic Behavior
What is the role of society in the Embedded Economy?
Society is foundational for social cohesion, necessary to meet fundamental needs and nurture interdependence.
p.6
Inequality and Human Deprivation
What is conspicuous consumption?
The practice of purchasing luxury goods to signal status.
p.7
Human-Centered vs. Earth-Centered Goals
How do communities thrive according to the text?
By connecting with each other and with the living home we share with others.
p.10
Neoliberalism and Globalization
What are conditional loans and their implications?
Conditional loans require countries to implement structural adjustment programs (SAPs) in exchange for financial support, often benefiting developed countries.
p.2
Economic Models and Theories
What is a key limitation of traditional economic models?
They do not account for energy and raw materials that power the economic flow, making it not a closed system.
p.11
Sustainable Development and Future Challenges
What is the classic definition of sustainable development?
Sustainable development is defined as meeting the needs of the present without compromising the ability of future generations to meet their needs.
p.10
Economic Models and Theories
What are tariffs and how do they affect developing countries?
Tariffs are taxes on imported goods that can incentivize cheaper foreign products, forcing developing countries to accept foreign direct investments.
p.1
Economic Models and Theories
What is the significance of images and models in Doughnut Economics?
They provide immediate and easy understanding, making expert knowledge accessible to the masses.
p.9
Inequality and Human Deprivation
What are negative interest rates used for?
As an emergency measure to resurrect GDP growth, manage exchange rates, and raise inflation.
p.8
Inequality and Human Deprivation
What are the benefits of growth in low to middle income countries?
Increased GDP leads to higher life expectancy, lower child mortality, and increased school enrollment.
p.8
Human-Centered vs. Earth-Centered Goals
What are the two opposing views on economic growth mentioned?
Keep on flying advocates (green growth) vs. Prepare for landing advocates (post-growth).
p.1
Inequality and Human Deprivation
What are the 12 basics included in the Social Foundation?
Sufficient food, clean water, decent sanitation, access to energy, education, healthcare, decent housing, minimum income, decent work, and access to networks of information and social support.
p.8
Ecological Ceiling and Planetary Boundaries
What is required for high income countries regarding resource use and GDP growth?
Absolute decoupling, where resource use falls absolutely as GDP grows.
p.3
Economic Models and Theories
What is the first priority of the Organization for Economic Cooperation & Development (OECD)?
The highest sustainable economic growth, focusing on sustaining output growth rather than the environment.
p.7
Sustainable Development and Future Challenges
What dilemma is presented regarding economic growth and human deprivation?
No country has ended human deprivation without a growing economy, and no country has ended ecological degradation with a growing economy.
p.8
Embedded Economy Concept
What is the sharing economy?
A culture of access by sharing with others, moving away from ownership.
p.1
Human-Centered vs. Earth-Centered Goals
What are the five factors that contribute to achieving dynamic balance in Doughnut Economics?
Population, Distribution, Aspiration, Technology, and Governance.
p.13
Inequality and Human Deprivation
What are Haughton’s 5 Equity Principles?
1. Futurity: needs of future generations 2. Social justice: all should be capable 3. Transfrontier responsibility: geographical 4. Procedural: fair treatment 5. Inter-species: biodiversity
p.1
Human Nature and Economic Behavior
What did Alvin Toffler emphasize regarding ideas?
The importance of discarding old ideas and learning, unlearning, and relearning.
p.9
Sustainable Development and Future Challenges
What is the challenge faced when stimulating consumption versus boosting investment?
Finding a balance between stimulating consumption and boosting investment as an effect.
p.13
Economic Models and Theories
What is the difference between Gross National Income (GNI) and Gross Domestic Product (GDP)?
GNI is the total value of all income of residents of a country, regardless of source, while GDP is the total value of all income/final output created within borders, regardless of recipient.
p.5
Human Nature and Economic Behavior
What role do altruistic punishers play in human cooperation?
Altruistic punishers punish defectors and free riders regardless of cost, contributing to large-scale cooperation among humans.
p.11
Inequality and Human Deprivation
How do TNCs exploit labor in developing countries?
They exploit child and women workers, pay low wages for long hours, and prevent unionization.
p.8
Inequality and Human Deprivation
What does Benjamin Friedman suggest about ever-growing incomes?
They lead to greater opportunities, diversity, social mobility, fairness, and democracy.
p.6
Human-Centered vs. Earth-Centered Goals
What are nudges in the context of behavioral economics?
Nudges are part of choice architecture that alters behavior in predictable ways without removing options or significantly changing incentives.
p.4
Human-Centered vs. Earth-Centered Goals
What are the four realms that provision human wants and needs in the economy?
Household, Market, Commons, and State.
p.8
Human Nature and Economic Behavior
What does the Richard Easterlin Paradox suggest about income and happiness?
Increased incomes do not necessarily equate to increased happiness.
p.3
Human Nature and Economic Behavior
What cultural belief is associated with the idea of ever-growing output?
The belief that 'Good is up' and 'Good is forward' is prevalent in Western culture.
p.3
Human-Centered vs. Earth-Centered Goals
What alternative perspective on growth is suggested by various cultures?
'Good is in-balance' as expressed in concepts like pan metron ariston (Greeks) and buen vivir (Andean).
p.7
Neoliberalism and Globalization
What is the implication of capitalist economies restructuring laws and institutions?
They expect, demand, and depend on continual GDP growth, leading to destructive measures.
p.2
Economic Models and Theories
What was Aristotle's view on money in economics?
Aristotle viewed money as a means of exchange rather than a way to increase interest, considering it an unnatural mode of acquiring wealth.
p.2
Economic Models and Theories
What did Adam Smith contribute to the understanding of political economy?
Adam Smith defined political economy as a goal-oriented science aimed at supplying subsistence and sufficient revenue for public services.
p.7
Sustainable Development and Future Challenges
What question does the text raise about economic collapse?
Can we pre-empt it rather than meet the collapse?
p.2
Economic Models and Theories
What does Okun's Law state?
Okun's Law describes the correlation between growth and unemployment, suggesting that output growth reduces unemployment.
p.3
Ecological Ceiling and Planetary Boundaries
What environmental issues are exacerbated by neoliberal practices?
Issues include climate change, ocean acidification, chemical pollution, and biodiversity loss.
p.12
Doughnut Economics Overview
What does Raworth's Doughnut Economics emphasize?
Creating economies that enable us to thrive.
p.1
Sustainable Development and Future Challenges
What is the goal of Doughnut Economics?
To reconcile meeting human needs with meeting the Earth’s needs.
p.11
Sustainable Development and Future Challenges
What is the role of the World Development Movement (WDM) regarding TNCs?
WDM urges industrialized countries to take responsibility for the activities of corporations.
p.1
Inequality and Human Deprivation
What does the donut hole signify?
Critical Human Deprivation, which occurs when needs fall below the Social Foundation.
p.8
Sustainable Development and Future Challenges
What are the three necessary shifts for sufficient absolute decoupling?
1. Rapid shift from fossil fuels to renewable energy, 2. Resource-efficient circular economy, 3. Expand the 'weightless' economy.
p.2
Human Nature and Economic Behavior
What is the significance of worldview in economics?
Worldview is the lens we use to interpret the world, and framing determines how we make sense of experiences.
p.6
Human Nature and Economic Behavior
What are the ten clusters of basic personal values identified by Schwartz?
Self-direction, Stimulation, Hedonism, Achievement, Power, Security, Conformity, Tradition, Benevolence, Universalism.
p.11
Inequality and Human Deprivation
What is a challenge faced by trade justice movements?
Trade justice movements must ensure that wealthy countries support policies to eradicate poverty, even if it conflicts with their own interests.
p.7
Economic Models and Theories
What are the five stages of growth according to Walt Rostow?
1. Traditional society, 2. Preconditions for take-off, 3. Take-off, 4. Drive to maturity, 5. Age of high mass-consumption.
p.13
Economic Models and Theories
How is development measured according to James Cypher & James Dietz?
Development is measured by economic growth/income criterion, specifically per capita income.
p.7
Economic Models and Theories
What did Adam Smith suggest about economic growth?
He proposed the idea of a 'stationary state' checked by the nature of its soil, climate, and situation.
p.12
Sustainable Development and Future Challenges
What is a major argument against sustainable development (SD)?
There is no single definition of SD that fits all needs.
p.9
Neoliberalism and Globalization
What does Paul Kennedy suggest determines a nation's power?
The relative wealth of nations, not absolute wealth.
p.3
Ecological Ceiling and Planetary Boundaries
What is the Anthropocene?
The Anthropocene is the first geological epoch shaped by human activity.
p.9
Doughnut Economics Overview
What is the vision of Doughnut Economics?
A global economy creating a thriving balance via distributive and regenerative design.
p.1
Economic Models and Theories
How does the current teaching of economics influence policy makers?
It shapes society and limits us by focusing too much on theories and old models.
p.6
Human Nature and Economic Behavior
What does availability bias refer to?
The tendency to make decisions based on recent or easily accessible information.
p.8
Ecological Ceiling and Planetary Boundaries
What is decoupling in the context of GDP and resource use?
It refers to GDP increasing while resource use decreases.
p.1
Ecological Ceiling and Planetary Boundaries
What does the outer border of the Doughnut represent?
The Ecological Ceiling, which indicates the planet's capacity.
p.4
Neoliberalism and Globalization
How does Neoliberalism view the environment and resources?
Neoliberalism considers the environment and resources as unlimited and inexhaustible, allowing for unrestricted consumption.
p.4
Critique of GDP as a Measure of Progress
What is the critique of the Neoliberal approach to shortages?
Neoliberalism suggests raising prices and looking for alternatives, which is considered wrong in the context of respecting ecological limits.
p.12
Inequality and Human Deprivation
What is the utilitarian view regarding inequality and economic growth?
It justifies inequality in exchange for economic growth.
p.5
Human Nature and Economic Behavior
What is the concept of Homo economicus?
Homo economicus is a rational economic man, depicted as self-centered and unaffected by others' choices, central to mainstream economic theory.
p.2
Sustainable Development and Future Challenges
What does 'Create to regenerate' imply in economic terms?
The economy should not focus solely on upward growth but should be viewed as a cycle.
p.12
Ecological Ceiling and Planetary Boundaries
What is the result of viewing the environment and society as resources?
They are exploited for economic gain.
p.4
Neoliberalism and Globalization
What does the Neoliberal view suggest about the State?
Neoliberalism considers the State incompetent and advocates for minimal government intervention.
p.9
Inequality and Human Deprivation
What is the Global Alliance for Tax Justice focused on?
Tackling tax loopholes, promoting corporate transparency, and advocating for fair international tax rules.
p.12
Sustainable Development and Future Challenges
What does the focus on the environment often neglect?
It prioritizes rural issues and is anti-urban.
p.9
Critique of GDP as a Measure of Progress
What are some alternative measures to GDP for success?
Human Development Index, Happy Planet Index, Inclusive Wealth Index, Social Progress Index.
p.3
Neoliberalism and Globalization
What principles characterize Neoliberalism?
Neoliberalism is characterized by limited government intervention in the market, trade liberalization, and privatization of public services.
p.12
Human-Centered vs. Earth-Centered Goals
What is the starting point for an integrated approach to health?
Considering the effects of economy and social circumstances on health.
p.7
Human Nature and Economic Behavior
What is the most effective approach to connect with people's values according to Tom Crompton and Tim Kasser?
Connect with people's values and identity, not with their pocket and budget.
p.10
Economic Models and Theories
What are the Bretton Woods Institutions mentioned in the text?
The International Monetary Fund (IMF) and the World Bank, which support international monetary systems and provide loans for development, respectively.
p.11
Sustainable Development and Future Challenges
What does development entail according to the text?
Development involves redistribution of wealth for social needs, regulation of trade, and sustained public investment in health and education.
p.6
Ecological Ceiling and Planetary Boundaries
What does Aldo Leopold suggest about our relationship with nature?
He advocates for a shift from viewing ourselves as conquerors of nature to seeing ourselves as members or citizens of the ecological community.
p.1
Sustainable Development and Future Challenges
What is the 'safe and just space for humanity'?
The area between the Social Foundation and the Ecological Ceiling where human needs are met within the planet's means.
p.11
Economic Models and Theories
What limitation does the interconnected rings model of society, environment, and economy have?
It assumes separation and autonomy of each sector, ignoring their interconnected relationships, which leads to a compartmentalized approach.
p.10
Neoliberalism and Globalization
What is the General Agreement on Tariffs and Trade (GATT)?
GATT, established by the WTO, aims to liberalize trade and reduce state protection over domestic markets.
p.4
Neoliberalism and Globalization
What is the Neoliberal perspective on the market?
Neoliberalism views the market as efficient and sustained by self-interest, advocating for a free market without government regulations.
p.5
Critique of GDP as a Measure of Progress
How does Adam Smith's view on self-interest differ from its common interpretation?
While Adam Smith believed self-interest helps markets work, the assumption that competitive self-interest is man's natural state is a misinterpretation.
p.9
Neoliberalism and Globalization
Why did national income growth become a political necessity?
It was seen as a policy option to raise revenue without increasing taxes.
p.7
Critique of GDP as a Measure of Progress
What limiting factor is associated with GDP growth according to the text?
Logistic growth, represented by an S curve.
p.4
Neoliberalism and Globalization
How does Neoliberalism perceive finance?
Neoliberalism views finance as infallible through formulas and believes it does not require regulation.
p.2
Critique of GDP as a Measure of Progress
What is the flaw in the assumption that consumers prefer more over less?
This assumption leads to the belief that continual income growth is a measure of welfare, which is flawed.
p.9
Human-Centered vs. Earth-Centered Goals
What are the 5 Simple Acts to promote well-being?
1. Connecting to people around us 2. Being active in our bodies 3. Taking notice of the world 4. Learning new skills 5. Giving to others.
p.12
Ecological Ceiling and Planetary Boundaries
What is the nested model's limitation?
It assumes that each layer (economy, society, environment) is a unified entity.
p.11
Human-Centered vs. Earth-Centered Goals
What flawed assumption is made about development models?
The assumption is that developing countries should follow the model used by industrialized nations, which can lead to Westernization rather than true development.
p.6
Human Nature and Economic Behavior
What is the role of heuristics in decision-making?
Heuristics are unconscious mental shortcuts that help make decisions more efficiently, often leading to better outcomes than complex calculations.
p.10
Sustainable Development and Future Challenges
How does the debt crisis affect development?
The debt crisis creates a cycle of loaning and repayments that prevents development, with significant portions of GDP going to loan repayments.
p.10
Neoliberalism and Globalization
What role does the World Trade Organization (WTO) play?
The WTO arbitrates trading disputes, imposes sanctions, and influences the economies of developing countries.
p.8
Economic Models and Theories
What are the modified stages of growth according to the text?
1. Traditional society, 2. Preconditions for take-off, 3. Take-off, 4. Drive to maturity, 5. Age of high mass-consumption.
p.12
Inequality and Human Deprivation
How is quality of life viewed in relation to economic growth?
Quality of life is separated from economic growth.
p.12
Neoliberalism and Globalization
What dominates decision-making in the political reality regarding the economy and environment?
The economy dominates, especially for governments influenced by transnational corporations (TNCs).
p.3
Sustainable Development and Future Challenges
What critical questions should be asked regarding economic growth?
Questions include: growth of what, why, for whom, who pays costs, how long can it last, cost for the planet, and how much is enough?
p.4
Sustainable Development and Future Challenges
What duties should the State fulfill according to the Embedded Economy?
1. Provide public goods, 2. Support the core caring role of the household, 3. Unleash the dynamism of the commons, 4. Embed the market in institutions that promote the common good.
p.2
Economic Models and Theories
What is the definition of economics according to Lionel Robbins?
Economics is the science that studies human behavior as a relationship between ends and scarce means with alternative uses.
p.13
Economic Models and Theories
What adjustments are made for GDP and GDI?
Adjustments are made for population size, price changes over time (converting to real/constant price), and income distribution.
p.9
Doughnut Economics Overview
What is the ultimate task according to Kate Raworth?
To create economic designs that enable nations nearing the end of GDP growth to thrive without it.
p.12
Human-Centered vs. Earth-Centered Goals
What is the aim of a win-win outlook in economic activity?
To achieve human well-being.
p.12
Sustainable Development Principles
How is quality of life viewed in relation to economic growth?
Quality of life is separated from economic growth.
p.11
Neoliberalism and Globalization
What is a major criticism of Transnational Corporations (TNCs)?
They exploit child and women workers in developing countries to maximize profit.
p.4
Ecological Ceiling and Planetary Boundaries
How is the living world powered according to the Embedded Economy?
The living world is powered by solar energy.
p.11
Inequality and Human Deprivation
What is the challenge of development in the age of globalization?
The challenge is to promote cultural diversity and interdependence while implementing democratic control over trade and harmful investments.
p.3
Critique of GDP as a Measure of Progress
What significant shift occurred at the end of the 20th century regarding economic measurement?
The switch from GNP to GDP as the primary measure of economic performance.
p.5
Neoliberalism and Globalization
How does Ecological Economics (EE) view trade liberalization?
EE sees trade liberalization as double-edged, advocating for fairness, while NL supports it without government regulations.
p.9
Economic Models and Theories
What does demurrage mean in the context of money?
A small fee for holding money, leading to a loss in value the longer it is held.
p.7
Critique of GDP as a Measure of Progress
What does the term 'Medusa of economic theory' refer to?
The long-term future of GDP growth, which is considered a taboo topic.
p.13
Ecological Ceiling and Planetary Boundaries
What does internalizing externalities mean in the context of environmental damage?
It means that the creator of the cost pays all the cost, raising the question of whether this will truly reduce societal and environmental costs.
p.1
Economic Models and Theories
What does Paul Samuelson's Circular Flow model illustrate?
The flow of income around the economy, likened to water in pipes.
p.12
Human Nature and Economic Behavior
What limitation exists in the perception of humans in relation to the environment?
Humans are viewed as separate from the environment.
p.3
Human-Centered vs. Earth-Centered Goals
What did Jean Sismondi advocate for in political economy?
He advocated for a focus on human welfare and needs as the goal of political economy, rather than wealth accumulation.
p.13
Sustainable Development and Future Challenges
What is high-quality growth?
High-quality growth is sustainable, leads to lasting gains in employment and living standards, reduces poverty, increases equity and equality of opportunity, respects human freedom, and protects the environment.
p.9
Human Nature and Economic Behavior
What does John Berger suggest about publicity?
It proposes to transform ourselves by buying something.
p.12
Embedded Economy Concept
What does commodification in economic terms lead to?
It commodifies the satisfaction of human needs, production, knowledge, and nature.
p.10
Inequality and Human Deprivation
What impact do international financial institutions (IFIs) have on developing countries?
IFIs control the policy agenda for global trade and economic development, limiting governments' capacity to implement social justice programs.
p.5
Human Nature and Economic Behavior
What is the difference between Neoliberalism (NL) and Ecological Economics (EE) regarding innovation?
NL promotes innovation by letting it lead without regulations, while EE gives innovation a purpose.
p.7
Economic Models and Theories
What is necessary to create economies agnostic about growth?
Transforming financial, political, and social structures to promote human prosperity regardless of GDP's status.
p.2
Embedded Economy Concept
What does the concept of the Embedded Economy emphasize?
It emphasizes seeing the big picture beyond money and prioritizing society and nature.
p.2
Inequality and Human Deprivation
How should we approach inequality and environmental degradation according to modern economic thinking?
Inequality and environmental degradation are not inevitable; we need to design for distribution and redistribute wealth.
p.3
Critique of GDP as a Measure of Progress
What did Kuznets argue regarding national income?
He argued that national income excludes goods and services produced by and for households, and does not indicate distribution, thus welfare cannot be inferred from it.
p.5
Human-Centered vs. Earth-Centered Goals
What are the five broad shifts proposed for nurturing human nature?
1. Social & reciprocating, NOT self-interested; 2. Fluid values, NOT fixed preferences; 3. Interdependent, NOT isolated; 4. Approximate, NOT calculate; 5. Deeply embedded in web of life, NOT dominion over nature.
p.5
Inequality and Human Deprivation
What is the significance of sampling bias in economic research?
Sampling bias often represents WEIRD societies (Western, Educated, Industrialized, Rich, Democratic), which can skew understanding of human behavior.
p.3
Inequality and Human Deprivation
What is Amartya Sen's perspective on development?
Sen believes that development should focus on advancing the richness of human life, not just the economy.
p.12
Neoliberalism and Globalization
What trend is observed in the perception of development in a neoliberal context?
There is a focus on the economic side of development, neglecting environmental and social issues.
p.12
Critique of GDP as a Measure of Progress
What activities are often excluded from GNI and GDP measures?
Home production and subsistence activities.
p.10
Sustainable Development and Future Challenges
What is the danger of privatizing public services?
Privatization can lead to a decline in the quality of essential services and unaffordable prices for poor communities.
p.4
Embedded Economy Concept
What is the importance of the Commons in the Embedded Economy?
The Commons are shareable resources that should be governed by self-organizing communities to prevent exploitation.
p.1
Embedded Economy Concept
What is the market relationship in Doughnut Economics centered around?
The relationship between households and businesses within a closed system.
p.9
Inequality and Human Deprivation
What should be taxed according to the proposed tax reforms?
Accumulated wealth, not income streams.
p.5
Human-Centered vs. Earth-Centered Goals
How does the use of economic terms affect empathy?
The use of economic terms like 'profit' and 'consumer' reduces empathy, framing individuals in limited market roles rather than as whole citizens.
p.12
Neoliberalism and Globalization
How do TNCs utilize a 'green' image?
They use it as a marketing tool.
p.12
Human Nature and Economic Behavior
How is human life dependent on society?
Human existence depends on social interaction.
p.12
Inequality and Human Deprivation
What is the utilitarian view regarding inequality and economic growth?
It justifies inequality in exchange for economic growth.
p.5
Neoliberalism and Globalization
What does NL stand for in the context of innovative approaches?
Neoliberalism, which suggests letting innovation lead without regulations.
p.7
Sustainable Development Principles
What does 'redrawing ourselves' emphasize?
Thriving by connecting with each other and with the living home we share.
p.11
Sustainable Development Principles
What flawed assumption is often made regarding development?
That developing countries should follow the model used by industrialized nations.
p.5
Neoliberalism and Globalization
What does trade liberalization entail?
No government regulations on trade.
p.9
Sustainable Development Principles
What is Evergreen Direct Investing (EDI)?
Acceptable, resilient financial returns from mature low- to no-growth enterprises.
p.11
Inequality and Human Deprivation
What is a challenge for trade justice movements?
Ensuring wealthy countries support policies to eradicate poverty, even if it conflicts with their own interests.
p.5
Economic Models and Theories
What does the law of diminishing returns state?
The law of diminishing returns states that the more you consume something, the less you will desire it.
p.2
Critique of GDP as a Measure of Progress
What is the analogy used to describe GDP in the context of economic growth?
GDP is likened to a cuckoo in an economic nest, as it lays eggs in others' nests and takes over resources.
p.10
Neoliberalism and Globalization
How do transnational corporations (TNCs) operate in developing countries?
TNCs proliferate operations in developing countries under favorable trading terms, often prioritizing stockholder profits over local needs.
p.13
Inequality and Human Deprivation
What does a positive GDP/GNI gap indicate?
A positive gap (GDP > GNI) indicates that income outflows to the rest of the world (ROW) are greater than income inflows from ROW.
p.12
Critique of GDP as a Measure of Progress
How is GDP related to sustainable development progress?
The growth of GDP is often used as a measure of sustainable development progress.
p.3
Ecological Ceiling and Planetary Boundaries
What are the 9 Boundaries identified by Johan Rockström & Will Steffen?
These boundaries are essential to maintain Holocene-like conditions and define the ecological ceiling.
p.9
Neoliberalism and Globalization
What has characterized the past 50 years in terms of economic policy?
Neoliberalism and fast-tracked globalization.
p.12
Role of Governance in Economic Systems
What dominates decision-making in political reality according to the text?
The economy dominates, especially for governments influenced by TNCs.
p.12
Ecological Ceiling and Planetary Boundaries
What is a limitation of viewing humans as separate from the environment?
It ignores the interconnectedness of human life, society, and the environment.
p.11
Neoliberalism and Globalization
How do TNCs affect the economies of developing countries?
They can asset-strip natural resources and exploit the labor force.
p.12
Critique of GDP as a Measure of Progress
How does the focus on GDP relate to sustainable development?
The growth of GDP is often used as a measure of sustainable development progress.
p.8
Future of Economic Growth and Alternatives
What does the term 'secular stagnation' refer to?
A situation where economic growth is persistently low, as described by Larry Summers.
p.10
Inequality and Human Deprivation
What does the Agreement on Trade Related Intellectual Property Rights (TRIPS) allow?
TRIPS allows transnational corporations (TNCs) to patent intellectual property, including indigenous medicines and seeds.
p.13
Critique of GDP as a Measure of Progress
What is the relationship between per capita income and broader aspirations of progress?
Empirical evidence shows that per capita income is highly correlated with broader aspirations of economic, social, and political progress.
p.3
Human-Centered vs. Earth-Centered Goals
What concept did Michael Sandel highlight in public policymaking?
He pointed out the 'moral vacancy' in public policymaking, indicating a lack of discussion about values and goals.
p.7
Ecological Ceiling and Planetary Boundaries
Who argued that the global economy is faced with the carrying capacity of Earth?
Nicholas Georgescu-Roegen in 1971.
p.4
Economic Models and Theories
What is the role of regulations in the Embedded Economy?
Regulations are seen as essential to ensure that finance serves society and does not accumulate wealth excessively.
p.13
Inequality and Human Deprivation
How does population growth affect per capita income?
High rates of population growth require higher rates of total income growth just to keep per capita income constant.
p.9
Economic Models and Theories
What does the term 'tabula rasa' refer to in this context?
A blank state, suggesting a fresh start for economic policies.
p.4
Human Nature and Economic Behavior
How does the Embedded Economy view the relationship between society and the economy?
It sees society as foundational, emphasizing social cohesion and interdependence to meet fundamental needs.
p.1
Sustainable Development Principles
What is the goal of Doughnut Economics?
To reconcile meeting human needs with meeting the Earth’s needs.
p.2
Economic Theories and Models
What is the role of banks in the economic cycle?
Receive income as savings and return it as investment.
p.12
Economic Theories and Models
What is the nested model's limitation regarding economies?
It assumes each economy is a unified entity, ignoring the informal economy.
p.3
Ecological Ceiling and Planetary Boundaries
What does the Great Acceleration refer to?
It refers to the unprecedented stress on the planet due to rapid economic growth and resource-intensive lifestyles.
p.12
Economic Models and Theories
What does the capitalist economy focus on?
The production and exchange of goods and services via market operations.
p.12
Embedded Economy Concept
What does the informal economy represent?
Income flows without government permits and no paid taxes.
p.4
Role of Governance in Economic Systems
What is the Embedded Economy's stance on the market?
It advocates for a powerful market that is wisely embedded with regulation and accountability.
p.11
Role of Governance in Economic Systems
What is the role of the World Development Movement (WDM)?
Urging industrialized countries to take responsibility for the activities of corporations.
p.5
Inequality and Human Deprivation
What is a key measure to address inequality between owners and workers?
Ensuring workers’ rights to organize and bargain.
p.1
Inequality and Human Deprivation
What are some of the 12 basics included in the Social Foundation?
Sufficient food, clean water, decent sanitation, access to education and healthcare.
p.4
Sustainable Development Principles
How does the Embedded Economy view finance?
It sees finance as a service that should flow constantly and not accumulate, serving society.
p.4
Neoliberalism and Globalization
What is the Neoliberal view on regulations applicable to business?
It considers them as hindrances to productivity and believes in trusting market mechanisms.
p.10
Role of Governance in Economic Systems
What are the Bretton Woods Institutions and their purpose?
The IMF and World Bank were established for post-war rehabilitation and international trade.
p.12
Sustainable Development Principles
What approach is suggested for a more integrated understanding of systems?
A 'whole systems' approach.
p.11
Sustainable Development Principles
What is a limitation of the classic model of sustainable development?
It assumes separation and autonomy of society, environment, and economy, ignoring their interconnected relationships.
p.4
Neoliberalism and Globalization
What is the impact of neoliberal economic policies on the Index of Sustainable Development in Britain from the 1970s to the 1990s?
There was a decline in the Index of Sustainable Development.
p.8
Sustainable Development Principles
What are the benefits of growth in low to middle income countries?
Increased GDP, life expectancy, lower child mortality, and higher school enrollment.
p.2
Economic Theories and Models
What are the three main leakages in the economic cycle?
Banks, Government, and Trade.
p.8
Future of Economic Growth and Alternatives
What is the difference between 'keep on flying' and 'prepare for landing' advocates?
'Keep on flying' advocates support continued economic growth, while 'prepare for landing' advocates argue for a post-growth approach.
p.5
Inequality and Human Deprivation
What is the impact of migration of skilled workers on developing countries?
It can cripple them by increasing the need to import products they can produce.
p.7
Ecological Ceiling and Planetary Boundaries
What does Nicholas Georgescu-Roegen argue about the global economy?
It faces the carrying capacity of Earth.
p.13
Economic Theories and Models
What does a positive GDP/GNI gap indicate?
It indicates that GDP is greater than GNI, meaning income outflows to the rest of the world exceed income inflows.
p.6
Inequality and Human Deprivation
What is conspicuous consumption?
The purchase of luxury goods to signal status.
p.10
Neoliberalism and Globalization
How do tariffs affect developing countries?
Tariffs on imports can lead to reduced domestic productivity and increased unemployment.
p.3
Sustainable Development Principles
What alternative perspective on growth is suggested by various cultures?
'Good is in-balance', emphasizing harmony rather than just growth.
p.13
Inequality and Human Deprivation
What does a higher per capita income indicate about a country?
It indicates that the country is more developed.
p.2
Economic Theories and Models
What does Okun's Law suggest?
There is a correlation between economic growth and unemployment reduction.
p.1
Economic Theories and Models
How does the current teaching of economics affect policy makers?
It shapes decisions that limit society by focusing on theories and old models.
p.5
Neoliberalism and Globalization
What is the purpose of EE in innovative contexts?
To give innovation a purpose.
p.1
Inequality and Human Deprivation
What does the inner border of the Doughnut represent?
The Social Foundation, which includes the bare minimum needs of all.
p.4
Role of Governance in Economic Systems
What are the duties of the state in the context of the Embedded Economy?
To provide public goods, support household caring roles, unleash the dynamism of commons, and embed the market in regulations promoting the common good.
p.2
Economic Theories and Models
How does government function in the economic cycle?
Collects taxes and spends on public services.
p.9
Economic Theories and Models
What does demurrage refer to?
A small fee for holding money, resulting in a loss of value the longer it is held.
p.3
Critique of GDP as a Measure of Progress
What significant shift occurred at the end of the 20th century regarding economic measurement?
The switch from GNP to GDP.
p.5
Economic Theories and Models
What does the law of diminishing returns state?
The more you consume something, the less you will desire it.
p.2
Sustainable Development Principles
What is 'Doughnut Economics' focused on?
Shifting goals from capitalism to human-centered and Earth-centered objectives.
p.5
Human Nature and Economic Behavior
What is the significance of sampling bias in economic research?
Research often represents WEIRD societies, which may not reflect global human behavior.
p.3
Human Nature and Economic Behavior
What does Amartya Sen emphasize in his approach to development?
Development should focus on advancing the richness of human life, not just the economy.
p.6
Human Nature and Economic Behavior
What are the 10 clusters of basic personal values identified by Shalom Schwartz?
Self-direction, Stimulation, Hedonism, Achievement, Power, Security, Conformity, Tradition, Benevolence, Universalism.
p.4
Human Nature and Economic Behavior
What does the Embedded Economy concept emphasize?
It combines various schools of thought, embedding the economy within society and the living world, focusing on resources that determine well-being.
p.7
Human Nature and Economic Behavior
What is the most effective approach to connect with people's values according to Tom Crompton and Tim Kasser?
Connect with people's values and identity, not with their pocket and budget.
p.7
Critique of GDP as a Measure of Progress
What is the dilemma regarding economic growth and human deprivation?
No country has ended human deprivation without a growing economy, and no country has ended ecological degradation with a growing economy.
p.13
Critique of GDP as a Measure of Progress
How is development typically measured according to Cypher and Dietz?
By economic growth/income criterion, specifically per capita income.
p.10
Inequality and Human Deprivation
Who benefits from globalization according to the review?
Profits from globalization stay with the wealthy elite, with no redistribution to meet social needs.
p.8
Ecological Ceiling and Planetary Boundaries
What is absolute decoupling?
A situation where resource use falls absolutely while GDP grows.
p.5
Human Nature and Economic Behavior
What is the concept of 'Homo economicus'?
A rational economic man depicted as self-centered, calculating utility, and insatiable in wants.
p.10
Inequality and Human Deprivation
What is the impact of debt crisis on development?
It prevents development through a cycle of loaning and repayments, leading to cuts in essential services.
p.1
Critique of GDP as a Measure of Progress
What caution is advised regarding images and models in economics?
They are always a simplification and should be approached with caution.
p.2
Human Nature and Economic Behavior
What does it mean to 'nurture human nature' in economic thinking?
Recognizing our dependence on Earth and its resources.
p.9
Doughnut Economics Overview
What is the vision of Doughnut Economics?
A global economy creating a thriving balance via distributive and regenerative design.
p.3
Sustainable Development Principles
What key questions should be asked regarding economic growth?
Growth of what, why, for whom, who pays costs, how long can it last, and what is the cost for the planet?
p.3
Ecological Ceiling and Planetary Boundaries
What are the 9 planetary boundaries identified by Johan Rockström and Will Steffen?
Boundaries that must be maintained to preserve Holocene-like conditions.
p.11
Sustainable Development Principles
What does sustainable development aim to achieve according to the Brundtland report?
Meeting the needs of the present without compromising the ability of future generations to meet their needs.
p.3
Sustainable Development Principles
What is the primary goal of the Organization for Economic Cooperation & Development (OECD)?
To achieve the highest sustainable economic growth.
p.2
Economic Theories and Models
What is the significance of trade in the economic cycle?
Involves imports and exports.
p.8
Sustainable Development Principles
What are the three requirements for sufficient absolute decoupling?
Rapid shift to renewable energy, resource-efficient circular economy, and expansion of the 'weightless' economy.
p.6
Human Nature and Economic Behavior
What are the two axes of values according to Shalom Schwartz?
Openness to change vs. Conservation and Self-enhancement vs. Self-transcendence.
p.9
Inequality and Human Deprivation
What is the Global Alliance for Tax Justice focused on?
Tackling tax loopholes, promoting corporate transparency, and advocating for fair international tax rules.
p.8
Economic Theories and Models
What is exergy?
The proportion of total energy that can be harnessed for useful work.
p.10
Neoliberalism and Globalization
What does the Agreement on Trade Related Intellectual Property Rights (TRIPS) allow?
It allows transnational corporations to patent intellectual property, including indigenous medicines and seeds.
p.2
Inequality and Human Deprivation
What is the flaw in the assumption that consumers prefer more over less?
It overlooks the needs of those without money to express their wants.
p.4
Neoliberalism and Globalization
What is the Neoliberal perspective on the environment and resources?
It views them as unlimited and inexhaustible, allowing for unrestricted consumption.
p.4
Critique of GDP as a Measure of Progress
What does the Tragedy of the Commons refer to in the Neoliberal context?
It suggests that leaving shared resources to communities leads to resource depletion and exploitation.
p.13
Ecological Ceiling and Planetary Boundaries
What does 'internalizing externalities' mean in the context of environmental damage?
It means that the creator of the cost pays all the costs associated with environmental damage.
p.1
Inequality and Human Deprivation
What does the donut hole signify?
Critical Human Deprivation, indicating conditions below the Social Foundation.
p.13
Critique of GDP as a Measure of Progress
What is the relationship between per capita income and broader aspirations of progress?
Empirical evidence shows that per capita income is highly correlated with broader aspirations of economic, social, and political progress.
p.12
Inequality and Human Deprivation
What is the relationship between health and the economy?
Health is affected by economic factors such as poverty, occupation, and unemployment.
p.10
Economic Theories and Models
What are conditional loans from the IMF and World Bank?
Loans that require countries to implement structural adjustment programs in exchange for financial support.
p.7
Critique of GDP as a Measure of Progress
What is the significance of logistic growth in economic theory?
It suggests that GDP growth will gradually plateau due to limiting factors.
p.3
Human Nature and Economic Behavior
What does the phrase 'Good is up, Good is forward' signify in Western culture?
It reflects the belief that progress is synonymous with ever-growing output.
p.2
Sustainable Development Principles
What does 'embedded economy' emphasize?
Putting society and nature first, beyond just monetary concerns.
p.6
Role of Governance in Economic Systems
What are 'nudges' in the context of behavioral economics?
Policies that alter behavior in predictable ways without removing options or significantly changing incentives.
p.10
Sustainable Development Principles
What is the danger of privatizing public services?
It can lead to a decline in the quality of essential services and unaffordable prices for poor communities.
p.9
Critique of GDP as a Measure of Progress
What does the term 'positive sum economy' imply?
An ever-growing GDP is essential as it allows everyone to become better off.
p.10
Neoliberalism and Globalization
How are transnational corporations (TNCs) described in the review?
As modern Spanish Conquistadors that capture new markets and are only accountable to stockholders.
p.12
Critique of GDP as a Measure of Progress
What is a criticism of sustainable development (SD) mentioned in the text?
There is no single definition of SD that fits all needs.
p.7
Future of Economic Growth and Alternatives
What does it mean to create economies agnostic about growth?
Promotes human prosperity regardless of GDP's status.
p.6
Human Nature and Economic Behavior
What are the two main types of motivation discussed?
Extrinsic motivation (to achieve further outcomes) and intrinsic motivation (to engage in satisfying activities).
p.1
Sustainable Development Principles
What is the 'safe and just space for humanity'?
The area between the inner and outer borders of the Doughnut, where human needs are met within Earth's means.
p.3
Economic Theories and Models
How has GDP growth been perceived in political contexts?
It has shifted from a policy option to a political necessity.
p.1
Human Nature and Economic Behavior
What did Alvin Toffler emphasize regarding ideas?
The importance of learning, unlearning, and relearning.
p.8
Economic Theories and Models
What are the modified stages of growth according to economic theory?
1. Traditional society, 2. Preconditions for take-off, 3. Take-off, 4. Drive to maturity, 5. Age of high mass-consumption, 6. Arrival.
p.5
Human Nature and Economic Behavior
What role do altruistic punishers play in human cooperation?
They punish defectors and free riders regardless of the cost, promoting large-scale cooperation.
p.2
Economic Theories and Models
What did Adam Smith define political economy as?
A goal-oriented science to supply subsistence and revenue for public services.
p.3
Ecological Ceiling and Planetary Boundaries
What environmental issues are exacerbated by neoliberal practices?
Climate change, ocean acidification, chemical pollution, and biodiversity loss.
p.13
Sustainable Development Principles
What are Haughton’s 5 Equity Principles?
1. Futurity: needs of future generations; 2. Social justice: all should be capable; 3. Transfrontier responsibility: geographical; 4. Procedural: fair treatment; 5. Inter-species: biodiversity.
p.10
Globalization and Development
What is the relationship between globalization and development according to the review?
Globalization is equated with development, and accelerated globalization is seen as the only path to development.
p.7
Economic Theories and Models
What are the five stages of growth according to Walt Rostow?
1. Traditional society, 2. Preconditions for take-off, 3. Take-off, 4. Drive to maturity, 5. Age of high mass-consumption.
p.1
Ecological Ceiling and Planetary Boundaries
What does the outer border of the Doughnut represent?
The Ecological Ceiling, which is the planet's capacity.
p.13
Economic Theories and Models
What is the difference between Gross National Income (GNI) and Gross Domestic Product (GDP)?
GNI is the total value of all income of residents of a country, regardless of source, while GDP is the total value of all income/final output created within a country's borders.
p.1
Human Nature and Economic Behavior
What are the five factors that contribute to achieving a dynamic balance in Doughnut Economics?
Population, Distribution, Aspiration, Technology, and Governance.
p.13
Sustainable Development Principles
What is high-quality growth?
Growth that is sustainable, leads to lasting gains in employment and living standards, reduces poverty, promotes equity, and respects human freedom while protecting the environment.
p.5
Human Nature and Economic Behavior
What are the five broad shifts proposed for nurturing human nature?
1. Social & reciprocating, NOT self-interested; 2. Fluid values, NOT fixed preferences; 3. Interdependent, NOT isolated; 4. Approximate, NOT calculate; 5. Embedded in web of life, NOT dominion over nature.
p.10
Neoliberalism and Globalization
What is the General Agreement on Trade in Services (GATS)?
An agreement to remove restrictions and internal government regulations in areas considered barriers to trade.
p.6
Sustainable Development Principles
What does Aldo Leopold suggest about our relationship with nature?
We should see ourselves as members of the ecosystem rather than conquerors.
p.3
Ecological Ceiling and Planetary Boundaries
What is the 'Great Acceleration' in the context of global development?
A period of unprecedented stress on the planet due to resource-intensive lifestyles and rapid growth of the middle class.
p.7
Economic Theories and Models
What is the 'stationary state' concept proposed by Adam Smith?
A state checked by the nature of its soil, climate, and situation.
p.11
Critique of GDP as a Measure of Progress
What does the term 'one-size-fits-all' imply in the context of development?
It suggests that a uniform approach to development can lead to Westernization rather than genuine development.
p.2
Economic Theories and Models
Why is the economic system not considered a closed system?
It does not account for energy and raw materials.
p.8
Inequality and Human Deprivation
What does the Richard Easterlin Paradox suggest?
Increased incomes do not necessarily equate to increased happiness.
p.11
Sustainable Development Principles
What should be prioritized for effective development in the age of globalization?
Redistribution of wealth for social needs and sustained public investment in health, education, and welfare services.
p.6
Human Nature and Economic Behavior
What does 'loss aversion' refer to?
The strong preference to avoid loss compared to making an equivalent gain.
p.9
Sustainable Development Principles
What are the five simple acts to promote well-being?
Connecting to people, being active, taking notice, learning new skills, and giving to others.
p.2
Critique of GDP as a Measure of Progress
What analogy is used to describe GDP in the context of economic goals?
GDP is likened to a cuckoo in an economic nest, hijacking other goals.
p.6
Critique of GDP as a Measure of Progress
What is the critique of monetary incentives in policies aimed at reducing human and ecological deprivation?
Monetary incentives are often ineffective and underestimate the importance of values, reciprocity, and networks.
p.9
Economic Theories and Models
What is the purpose of negative interest rates implemented by various countries?
To resurrect GDP growth, manage exchange rates, and raise inflation.
p.9
Human Nature and Economic Behavior
What does the principle of sufficiency contrast with?
Insatiable wants of the rational economic man.
p.8
Human Nature and Economic Behavior
What cultural shift does the sharing economy represent?
A shift from a culture of ownership to a culture of access.
p.3
Critique of GDP as a Measure of Progress
What did Simon Kuznets argue regarding national income?
It excludes goods and services produced for households and does not indicate distribution, thus welfare cannot be inferred from it.
p.6
Human Nature and Economic Behavior
What is the significance of heuristics in decision-making?
Heuristics are unconscious mental shortcuts that help make better decisions without extensive calculations.
p.9
Critique of GDP as a Measure of Progress
What is the significance of the Human Development Index and similar measures?
They provide alternative metrics to GDP for assessing success and well-being.
p.3
Neoliberalism and Globalization
What are the principles of Neoliberalism?
Limited government intervention, trade liberalization, and privatization of public services.
p.5
Human Nature and Economic Behavior
How does self-interest relate to market functionality according to Adam Smith?
Self-interest is seen as a virtue that makes markets work.
p.7
Critique of GDP as a Measure of Progress
What does the term 'Medusa of economic theory' refer to?
The long-term future of GDP growth as a taboo topic.
p.13
Critique of GDP as a Measure of Progress
Why is adjusting for population size important when measuring income?
It allows for ranking and presumes differences in quality of life, helping to determine if changes in income are sufficient to keep up with population growth.
p.2
Future of Economic Growth and Alternatives
What is the importance of being agnostic about growth?
Understanding that growth does not always equate to progress or thriving.
p.9
Future of Economic Growth and Alternatives
What does Kate Raworth suggest about economies in relation to GDP growth?
Economies should enable thriving without relying on GDP growth.
