Measuring economic activity and illustrating its variations Well-being 2

Economic well-being

A multidimensional concept relating to the level of prosperity and quality of living standards in a country.

Happiness Index

An index that is used to measure economic well-being of a population using several quality of life dimensions.

OECD Better Life Index

An index to compare well-being across countries, based on several dimensions that the

OECD has identified as essential, in the areas of material living conditions and quality of

life.

Happy Planet Index

An index that combines four elements to show how efficiently residents of different countries are using environmental resources to lead long, happy lives. The elements are well-being, life expectancy, inequality of outcomes and ecological footprint.

Composite indicator

An indicator that is an average of more than one economic variable, for example HDI.

Human Development Index (HDI)

A composite index of development that reflects the three basic goals of development, which are a long and healthy life, improved education, and a decent standard of living. The variables measured are life expectancy at birth, mean years of schooling and expected years of schooling, and GNI per capita (PPP US$)

Sustainability

Refers to preserving the environment so that it can continue to satisfy needs and wants into the future. Relates to the concept of “sustainable development”

Economic development

A multidimensional concept involving a sustained increase in living standards that implies higher levels of income and thus greater access to goods and services, better education and health, a better environment to live in as well as individual empowerment.

Informal economy

Refers to the part of an economy where activity is not officially recorded, regulated or taxed. The activities of the informal economy are not included in a country’s national income figures.