Unit 3.1 · Measuring Economic Activity and Illustrating Its Variations
Alternative Measures of Well-being
AO2
Syllabus Requirement
Introduces broader indicators of development and quality of life, such as the OECD Better Life Index, Happiness Index, and Happy Planet Index.
Assessment Objectives
AO2Application and Analysis
Summary
This topic discusses alternative measures of well-being that go beyond traditional economic indicators like GDP. It highlights the limitations of GDP in reflecting true human well-being and introduces three composite indicators: the OECD Better Life Index, the Happiness Index, and the Happy Planet Index, which consider various social and environmental factors.