Human Development Index

Sustainable development is a pattern of using the resources so that they will be there for future generations,                                   such as preserving the environment.

Economic Growth is an increase of activity of the economy, such as an increase in GDP.

Economic Development is an increase of the quality of life of individuals in a certain area.

HDI, having to do with Economic Development, stands for Human Development Index, and it measures the quality of life.  To measure the quality of life, it uses data such as life expectancy at birth, GDP per capital, and literacy rate. Pakistan has an HDI of .551 which puts them very low on the ranking.

HDI is supposed to measure the quality of life for people in a given area.  Though it sounds a good idea, it is lacking some major points.  Such as the amount of actual happiness people are experiencing while they are alive, because the HDI measures how long people live and how smart they are when they are living.  This is a good idea, but I do think the actual scale needs improvement.

What I have learned about PPC/PPF

1. Resources are limited.
2. The graph shows how efficient an economy is working.
3. Choices between alternatives.
4. Opportunity increases.
5. If curve shifts outwards, new resources have been discovered or there is new technology.
6. If curve shifts inwards, natural disaster has struck the area.

Five Things I have Learned about Opportunity Cost

In Economics:  Nothing is Priceless.  To see if a benefit is worth the cost, economists use what is called Opportunity Cost.  Here are 5 things I have learned about Opportunity Cost:

1. Everyone has a price in mind.
2. Use cost benefit analysis.
3. Account for all factors by translating the cost  into money.
4. Cost is value of  opportunity.
5. Benefits are equal highest price you will pay.

Shortage of Japanese Nurses

Japan is undergoing a shortage of Japanese nurses.  With an aging population, there are more elderly people than young, making it an issue to take care of the elderly.  In the article, it is stated that many Filipinos are being moved to Japan to take care of the elderly.  This concept makes since to me, but in the article it says that a concern is that the Filipinos are taking jobs away from the Japanese.  That part of the article did not make since to me, because if there is a shortage they are just there to help.

Later on in the article, the idea of using robots is discussed.  Robots for medical procedures sounds brilliant, but I do not know if robots are going to be as gentle as the elderly need.  Therefore I do not think this idea would work with today’s technology.

As a side note, moving Filipino nurses to Japan will help the crisis in Japan.  Unfortunately, if too many nurses are moved to Japan. Then there might not be enough left in the Philippines.  Just as outsourcing has cause a problem in the US, moving too many working people out of a country should also cause a problem.

The Worldly Philosophers

1. How is scarcity and survival intertwined?

Scarcity is the lack of resources.  Back in the day, when men were hunter gathers, there was much scarcity of food, water, shelter, and other basic needs.  If these needs were not met, then one would most definitely die.  Therefore, people learned to work together so that survival was possible.
2. What are advantages and disadvantages of the two ways societies have been organized in the past?

In the past, civilizations were based on either tradition or authoritarian rule. Tradition ensured that whatever jobs were being done in the past were sure to be done in the present and future.  When a civilization was authoritarian, there was one man in charge.  That leader was able to make decisions based on what needed to be done.  An obvious advantage is that every job was completed.  Unfortunately, people were forced to do what they were told to do or what their family did, thus, leaving little room for individual growth.

3. Why was there no need for economists throughout most of history?

In the past, the economic systems were simple.  Everyone followed tradition, and there was usually one person in charge.  Therefore, this one person was able to make decisions about the economy and money, leaving nothing for economists to do.

4. Why do you think the economic  revolution was so disturbing?

The revolution was so disturbing because it opened the door to instability.  If everyone followed tradition and did exactly as they were told, then every job necessary would be completed.  After the revolution, individuals were left to make choices on their own.  Thus, the possibility of failure leading to a huge economic depression.