There are many measures of prosperity but in effect, they all measure the overall standard of life, life longevity, economic growth, development, and other factors that could be considered part of prosperity.
Gross Domestic Product
GDP
The most commonly used measure of a country's economy and people. Comparing those between two or more countries shows the differences in living standards. Changes can be used to track the trend of the country's prosperity.
Human Development Index
HDI
Created by the UN (United Nations) to classify countries as developed, developing, or underdeveloped. It also measures how the economic policies affect overall quality of life.
HDI is based on:
- Longevity (Life expectancy)
- Knowledge (School enrollment, adult literacy)
- Standard of Living (GDP)
green = high (0.800–1)
yellow = medium (0.500–0.799)
red = low (0.300–0.499)
gray = 2006 data not available
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(HDI in various countries)
Gross National Happiness Index
GNH
A little used measure of prosperity that does not measure the total standard but just the mental standard of living. Used as a "friendlier" term than GNP or Gross National Product.
Genuine Progress Indicator
GPI
Used in "green economics" or welfare economics as a replacement term for GDP or Gross Domestic Product. Like GNH it is a "friendlier" term.
Definition
There are many measures of prosperity but in effect, they all measure the overall standard of life, life longevity, economic growth, development, and other factors that could be considered part of prosperity.Gross Domestic Product
GDPThe most commonly used measure of a country's economy and people. Comparing those between two or more countries shows the differences in living standards. Changes can be used to track the trend of the country's prosperity.
Human Development Index
HDICreated by the UN (United Nations) to classify countries as developed, developing, or underdeveloped. It also measures how the economic policies affect overall quality of life.
HDI is based on:
- Longevity (Life expectancy)
- Knowledge (School enrollment, adult literacy)
- Standard of Living (GDP)
(HDI in various countries)
Gross National Happiness Index
GNHA little used measure of prosperity that does not measure the total standard but just the mental standard of living. Used as a "friendlier" term than GNP or Gross National Product.
Genuine Progress Indicator
GPIUsed in "green economics" or welfare economics as a replacement term for GDP or Gross Domestic Product. Like GNH it is a "friendlier" term.