p.2
Human Nature and Economic Behavior
What does the term 'Worldview' refer to?
The lens we use to interpret the world.
p.9
Economic Theories and Models
What are negative interest rates used for?
As an emergency measure to resurrect GDP growth and manage exchange rates.
p.9
Public Policy and Economic Transformation
What is the Global Alliance for Tax Justice focused on?
Tackling tax loopholes and promoting greater corporate transparency and accountability.
p.9
Economic Theories and Models
What is the result of implementing demurrage?
Money becomes a better medium of exchange and worse as a commodity itself.
p.11
Inequality and Human Deprivation
What is a major criticism of Transnational Corporations (TNCs)?
They relocate profits to their country of origin and exploit labor forces in developing countries.
p.3
Economic Theories and Models
What is the primary goal of the Organization for Economic Cooperation & Development (OECD)?
To achieve the highest sustainable economic growth.
p.13
Environmental Sustainability and Economic Growth
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.9
Human Nature and Economic Behavior
What does the principle of sufficiency advocate?
Having just enough, as opposed to insatiable wants.
p.6
Human Nature and Economic Behavior
What are the two main motivations for behavior according to the review?
Extrinsic motivation (to achieve further outcomes) and intrinsic motivation (to do something inherently satisfying).
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.2
Inequality and Human Deprivation
What does 'Design to distribute' suggest?
Inequality and environmental degradation are not inevitable and require wealth redistribution.
p.11
Sustainable Development Goals
What does development entail beyond economic growth?
Redistribution of wealth for social needs and sustained public investment in health, education, and welfare services.
p.7
Economic Theories and Models
What is the logistic growth model and who introduced it?
It describes how GDP growth will plateau due to limiting factors, introduced by Pierre Verhulst.
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.8
Inequality and Human Deprivation
What does the Richard Easterlin Paradox suggest?
Increased incomes do not necessarily lead to increased happiness.
p.12
Sustainable Development Goals
What approach aims for human well-being in economic activity?
An integrated or 'whole systems' approach.
p.11
Inequality and Human Deprivation
How do TNCs impact labor conditions in developing countries?
They prevent unions, exploit child and women workers, and pay low wages for long hours.
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.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.13
Economic Theories and Models
How is development measured according to Cypher and Dietz?
Development is measured by economic growth/income criterion, specifically per capita income.
p.4
Environmental Sustainability and Economic Growth
What is the role of solar energy in the living world according to Giddings et al.?
The living world is powered by solar energy.
p.6
Economic Theories and Models
What is 'availability bias'?
The tendency to make decisions based on recent or more accessible information.
p.10
Globalization and Its Impact on Development
What role does the World Trade Organization (WTO) play?
The WTO arbitrates trading disputes, imposes sanctions, and influences the economies of developing countries.
p.3
Environmental Sustainability and Economic Growth
What are the 9 Boundaries proposed by Johan Rockström and Will Steffen?
They define ecological ceilings to maintain Holocene-like conditions.
p.10
Globalization and Its Impact on Development
How are transnational corporations (TNCs) compared in the review?
They are likened to modern Spanish Conquistadors, capturing new markets under favorable trading terms.
p.12
Inequality and Human Deprivation
How does health relate to economic conditions?
Health is affected by poverty, occupation, and unemployment.
p.7
Human Nature and Economic Behavior
What role does community play in human society?
Community is essential as humans are the most social species and interdependent.
p.6
Economic Theories and Models
What does 'loss aversion' refer to in behavioral economics?
The strong preference to avoid loss compared to making an equivalent gain.
p.3
Human Nature and Economic Behavior
What cultural belief is associated with the idea that 'Good is up' and 'Good is forward'?
This reflects a Western cultural perspective on progress.
p.4
Embedded Economy vs. Neoliberalism
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.9
Public Policy and Economic Transformation
What does the term 'tabula rasa' refer to in the context of economic transformation?
A blank state, suggesting the need for new beginnings in economic policy.
p.4
Inequality and Human Deprivation
How does the Embedded Economy view the household's role?
It sees the household as core to sustaining essentials through unpaid, undervalued, and exploited labor.
p.8
Environmental Sustainability and Economic Growth
What is absolute decoupling?
A situation where resource use falls absolutely while GDP grows.
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. Deeply embedded in web of life, NOT dominion over nature.
p.1
Sustainable Development Goals
What is the primary goal of Doughnut Economics?
To reconcile meeting human needs with meeting the Earth’s needs.
p.3
Economic Theories and Models
How has GDP growth been perceived in political contexts?
It has become a de facto goal and a political necessity.
p.13
Inequality and Human Deprivation
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.1
Sustainable Development Goals
What is meant by 'Safe and just space for humanity'?
The area between the inner and outer borders of the Doughnut, where needs are met within Earth's means.
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.3
Globalization and Its Impact on Development
What is the Anthropocene?
The first geological epoch shaped by human activity.
p.10
Critique of GDP as a Measure of Progress
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.5
Human Nature and Economic Behavior
What is the relationship between self-regarding and other-regarding behavior in humans?
Humans are both self-regarding and other-regarding, making them the most cooperative species.
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
Economic Theories and Models
What is the dilemma regarding economic growth and human deprivation?
No country has ended human deprivation without a growing economy, nor ecological degradation with one.
p.1
Inequality and Human Deprivation
What are some of the 12 basic needs outlined in Doughnut Economics?
Sufficient food, clean water, decent sanitation, access to education and healthcare.
p.10
Economic Theories and Models
What are the Bretton Woods Institutions and their purpose?
They were established for post-war rehabilitation and international trade, including the IMF and World Bank.
p.3
Critique of GDP as a Measure of Progress
What did Kuznets argue about national income measurements?
They exclude goods and services produced for households and do not indicate distribution, thus welfare cannot be inferred.
p.3
Inequality and Human Deprivation
What does Amartya Sen emphasize in terms of development?
Development should focus on advancing the richness of human life, not just the economy.
p.5
Human Nature and Economic Behavior
What is the concept of 'Homo economicus'?
A rational economic man, self-centered and calculating utility.
p.8
Environmental Sustainability and Economic Growth
What are the three requirements for sufficient absolute decoupling?
1. Rapid shift from fossil fuels to renewable energy, 2. Resource-efficient circular economy, 3. Expansion of the 'weightless' economy.
p.11
Sustainable Development Goals
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.11
Environmental Sustainability and Economic Growth
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.2
Critique of GDP as a Measure of Progress
What is the analogy used to describe GDP in the text?
GDP is compared to a cuckoo in an economic nest, hijacking resources.
p.5
Economic Theories and Models
How does EE (Economic Evolution) view innovation?
It should give innovation a purpose.
p.3
Public Policy and Economic Transformation
What critical questions should be asked regarding economic growth?
Questions include growth of what, why, for whom, and how long can it last?
p.5
Globalization and Its Impact on Development
What does trade liberalization entail?
No government regulations.
p.12
Inequality and Human Deprivation
What is the utilitarian view regarding inequality?
Justifying inequality in exchange for economic growth.
p.3
Environmental Sustainability and Economic Growth
What environmental issues have been exacerbated by neoliberal practices?
Climate change, biodiversity loss, and air pollution are among the issues.
p.11
Sustainable Development Goals
What is the flawed assumption regarding development models?
That developing countries should follow the model used by industrialized nations.
p.9
Public Policy and Economic Transformation
What is the challenge faced by policymakers regarding national income growth?
Stimulating consumption versus boosting investment.
p.11
Public Policy and Economic Transformation
What is the proposed solution for regulating TNC activities?
Implementing an International Investment Treaty to promote quality investment and core standards for corporate responsibility.
p.7
Economic Theories and Models
What did John Stuart Mill propose regarding economic growth?
He suggested the concept of a 'post-growth society'.
p.10
Embedded Economy vs. Neoliberalism
How do international financial institutions (IFIs) affect developing countries?
They control the policy agenda for global trade and economic development, limiting governments' capacity for social justice.
p.5
Globalization and Its Impact on Development
What is the impact of trade on developing countries?
They are often crippled by the need to import products they can produce.
p.10
Environmental Sustainability and Economic Growth
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.8
Sustainable Development Goals
What is the sharing economy?
A culture of access rather than ownership, where resources are shared (e.g., laundry, cars).
p.9
Economic Theories and Models
What does demurrage refer to?
A small fee for holding money, leading to a loss in value the longer it is held.
p.6
Inequality and Human Deprivation
What is conspicuous consumption?
The use of luxury goods to signal status.
p.6
Public Policy and Economic Transformation
What are 'nudges' in the context of behavioral economics?
Policies that alter behavior in predictable ways without removing options or significantly changing incentives.
p.4
Human Nature and Economic Behavior
What is the perspective of the Embedded Economy (EE) on societal connections?
It emphasizes foundational social cohesion and interdependence to meet fundamental needs.
p.4
Economic Theories and Models
What is the Neoliberal perspective on the market?
It views the market as efficient and sustained by self-interest, advocating for a free market without government regulations.
p.5
Economic Theories and Models
What is the significance of the Black-Scholes Model?
It predicts the price of options traded in the market using publicly available data.
p.12
Human Nature and Economic Behavior
What does the nested model suggest about the economy, society, and environment?
It suggests they are interdependent and cannot exist separately.
p.9
Economic Theories and Models
What is Evergreen Direct Investing (EDI)?
Acceptable, resilient financial returns from mature low- to no-growth enterprises.
p.1
Economic Theories and Models
How does the current teaching of economics influence policy makers?
It shapes society and limits us by focusing on theories and old models.
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.10
Inequality and Human Deprivation
What is a major criticism of globalization mentioned in the review?
Profits from globalization stay with the wealthy elite, with no redistribution to meet social needs.
p.5
Economic Theories and Models
What is the role of innovative approaches in the context of NL (Neoliberalism)?
Let it lead without regulations.
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.4
Embedded Economy vs. Neoliberalism
How does the Neoliberal Story (NL) view the environment?
It considers the environment, resources, and biodiversity as unlimited and inexhaustible.
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.5
Human Nature and Economic Behavior
How does the term 'consumer' affect behavior?
It triggers self-regarding behavior and causes division.
p.12
Doughnut Economics Overview
What is the focus of Raworth's Doughnut Economics?
Creating economies that enable us to thrive.
p.7
Human Nature and Economic Behavior
What does 'redrawing ourselves' imply in the context of community?
It implies thriving by connecting with each other and the living home we share.
p.2
Doughnut Economics Overview
What is the first way to think like a 21st-century economist?
Change the goal from capitalism to human-centered and Earth-centered goals.
p.7
Economic Theories and Models
What are Walt Rostow's five stages of growth?
1. Traditional society, 2. Preconditions for take-off, 3. Take-off, 4. Drive to maturity, 5. Age of high mass-consumption.
p.3
Sustainable Development Goals
What alternative perspective on growth is suggested by various cultures?
'Good is in-balance', as seen in concepts like pan metron ariston and yin yang.
p.13
Economic Theories and Models
What adjustments are made for GDP and GNI?
Adjustments are made for population size, price changes over time, and income distribution.
p.8
Critique of GDP as a Measure of Progress
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 post-growth strategies.
p.4
Economic Theories and Models
How does the Embedded Economy view finance?
It sees finance as a service that should flow constantly and not accumulate, serving society rather than being infallible.
p.2
Economic Theories and Models
What are the three main leakages in the economic cycle?
Banks, Government, and Trade.
p.7
Human Nature and Economic Behavior
What does the 'sower-reaper' concept signify?
It embeds us in a web of life where societies co-evolve with the living world.
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.1
Environmental Sustainability and Economic Growth
What does the outer border of the Doughnut signify?
The Ecological Ceiling, representing the planet's capacity.
p.6
Environmental Sustainability and Economic Growth
What does Aldo Leopold suggest about our relationship with nature?
We should switch from seeing ourselves as conquerors to being plain members or citizens of the ecosystem.
p.13
Economic Theories and Models
What does a positive GDP/GNI gap indicate?
A positive gap indicates that GDP is greater than GNI, meaning income outflows to the rest of the world exceed income inflows.
p.7
Environmental Sustainability and Economic Growth
What did Nicholas Georgescu-Roegen warn about the global economy?
He stated that the global economy faces the carrying capacity of Earth.
p.3
Environmental Sustainability and Economic Growth
What is the 'Great Acceleration' referring to?
The unprecedented stress on the planet due to rapid economic growth and resource use.
p.4
Globalization and Its Impact on Development
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, advocating for government regulation and private ownership instead.
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.11
Embedded Economy vs. Neoliberalism
What role do the World Bank and IMF play in the context of TNCs?
They facilitate favorable trading conditions that support a profit-driven model of neoliberalism.
p.6
Human Nature and Economic Behavior
What are the two axes of values identified by Shalom Schwartz?
Openness to change vs. Conservation and Self-enhancement vs. Self-transcendence.
p.7
Economic Theories and Models
What is meant by creating economies agnostic about growth?
It promotes human prosperity regardless of GDP's status.
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.
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, regardless of recipient.
p.10
Inequality and Human Deprivation
What is the impact of debt crises on developing countries?
Debt crises prevent development through a cycle of loaning and repayments, leading to cuts in essential services.
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.5
Inequality and Human Deprivation
What qualities does society flourish best with?
Humanity, justice, generosity, and public spirit.
p.8
Economic Theories and Models
What are the modified 6 stages of growth?
1. Traditional society, 2. Preconditions for take-off, 3. Take-off, 4. Drive to maturity, 5. Age of high mass-consumption, 6. Arrival.
p.10
Globalization and Its Impact on 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.4
Sustainable Development Goals
What is 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.9
Human Nature and Economic Behavior
What are the five 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.13
Sustainable Development Goals
What is high-quality growth?
High-quality growth is sustainable growth that leads to lasting gains in employment and living standards, reduces poverty, promotes equity, and respects human freedom while protecting the environment.
p.3
Embedded Economy vs. Neoliberalism
What are the principles of neoliberalism?
Limited government intervention, trade liberalization, and privatization of public services.
p.12
Sustainable Development Goals
What is a major criticism of sustainable development (SD)?
There is no single definition that fits all needs.
p.2
Embedded Economy vs. Neoliberalism
What does 'Embedded Economy' emphasize?
Putting society and nature first beyond just money.
p.7
Critique of GDP as a Measure of Progress
What is the critique of continual GDP growth in capitalist economies?
It leads to destructive measures such as deregulating finance and dismantling worker protections.
p.2
Economic Theories and Models
What was Adam Smith's view on political economy?
It should be goal-oriented to supply subsistence and sufficient revenue for public services.
p.2
Human Nature and Economic Behavior
What is the flaw in the assumption about consumer preferences?
The assumption that consumers prefer more over less is flawed.
p.8
Sustainable Development Goals
What are the benefits of growth in low to middle income countries?
Increased GDP, life expectancy, lower child mortality, and higher school enrollment.
p.10
Economic Theories and Models
What is the effect of tariffs and quotas on Third World imports?
They create pressure for developing countries to accept foreign direct investments, threatening domestic productivity.
p.12
Embedded Economy vs. Neoliberalism
What dominates decision-making in political reality?
The economy dominates, especially for governments influenced by TNCs.
p.5
Inequality and Human Deprivation
What is strong reciprocity?
Conditional cooperation where individuals cooperate if others do.
p.1
Inequality and Human Deprivation
What is the 'donut hole' in Doughnut Economics?
It represents Critical Human Deprivation, going below the Social Foundation.
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.5
Inequality and Human Deprivation
What is a key measure to address inequality between owners and workers?
Ensure workers’ rights to organize and bargain.
p.9
Globalization and Its Impact on Development
What has characterized the past 50 years in terms of economic policy?
Neoliberalism and fast-tracked globalization.
p.10
Globalization and Its Impact on Development
What is the General Agreement on Trade in Services (GATS)?
It aims to remove restrictions and internal government regulations in areas considered barriers to trade.
p.12
Environmental Sustainability and Economic Growth
What is the result of the economy dominating society and the environment?
The environment and society are treated as resources to exploit.
p.12
Sustainable Development Goals
What is a limitation of the nested model?
It assumes each entity (economy, society, environment) is unified.
p.10
Public Policy and Economic Transformation
What do conditional loans from the IMF and World Bank require?
They require countries to implement structural adjustment programs (SAPs) that benefit developed countries.
p.1
Public Policy and Economic Transformation
What are the five factors that contribute to achieving dynamic balance in Doughnut Economics?
Population, Distribution, Aspiration, Technology, and Governance.
p.2
Economic Theories and Models
What does Okun's Law state?
There is a correlation between growth and unemployment; output growth reduces unemployment.
p.8
Economic Theories and Models
What does the term 'secular stagnation' refer to?
A situation where economic growth is persistently low, as described by Larry Summers.
p.4
Public Policy and Economic Transformation
What are the duties of the state in the context of the Embedded Economy?
1. Provide public goods, 2. Support core caring roles of households, 3. Unleash the dynamism of commons, 4. Embed the market in institutions that promote the common good.
p.12
Critique of GDP as a Measure of Progress
What does the focus on GDP growth signify in terms of sustainable development?
It measures sustainable development progress but neglects environmental and social issues.
