Chapter 17.2, Problem 4R

To determine

To evaluate the characteristics of a stable economy.

Explanation of Solution

The characteristics of stable economy are:

1. Participation: People will participate fully in economic life, and have more say about their future. People as staff, customers and business owners are able to connect and participate in the markets. Freedom of information and mutual awareness of rules and standards empower people to start a business, finding a job or participate in markets. Technology is more prevalent and encourages greater well-being for individuals and for societies.
2. Equity: There are more ways to allow for more people to step upwards. All parts of society, especially poor or socially marginalized groups, may utilize these benefits. Inequality decreases, not increases. People have equitable access to a stronger economic base including fair access to affordable public goods, facilities, and amenities such as public transport, education, cleaner air, and water.
3. Growth: An economy is progressively generating sufficient goods and services to allow for large improvements in well-being and better opportunities. Good jobs and job opportunities are increasing, and incomes are rising, particularly for the poor. Economic structures are changing for the betterment of all, particularly the vulnerable and disadvantaged populations in particular. Not only is economic growth and change measured by aggregate measures of economic output (such as GDP), but other results that reflect overall well-being must provide and be measured.
4. Stability: Individuals, families, companies, and governments have ample trust in their future, and improved capacity to predict the outcome of their economic decisions. People, families, societies and companies are safe enough to invest in their future. Economic systems are progressively resistant to shocks and stresses, particularly disruptions impacting poor or disadvantaged communities with disproportionate impacts.
5. Sustainability: Over time, economic and social stability is preserved and thereby retains intergenerational well-being. Economic and social wealth is the collective value of all the assets that contribute to human well-being, including human produced (manufactured, economy, physical, social), and natural resources. Human usage, in the case of natural resources, must maintain or restore the capacity of nature to create the abundance of products and services that contribute to human welfare. Thus, decision-making must reflect the long-term costs and advantages of human utilization of our entire resources base, not just the short-term gains.

Economics Concept Introduction

Introduction: An economy is the broad set of interconnected production and consumption activities which help to decide how limited resources are distributed. The distribution and production of goods and services are used to meet the needs of those who live and work within the economy, often referred to as an economic system.