Is the concept of economic performance together with the pra

Is the concept of economic performance, together with the practice of using economic performance measures (variables) that are either money amounts or are constructed from several money amounts, a valid, objective tool to measure value? Defend your answer.

Solution

Economic Performance

Definition: Those issues dealing with the amount and value of money, wealth, debt, and investment

Economic Performance Issues:

Economic Productivity: Changes in economic activity and the expansion of overall wealth

Economic Satellite Accounts: Integrating the valuation of environmental resources into the national economic accounting system

Economic Well Being: Changes in the relative economic status of individuals

Environmentally Dependent Industry: Industries that depend upon the proper functioning and productivity of specific ecosystems

Global Economy: The effects of the global economy on the United States

Labor Time Productivity: Changes in the productivity of the individual

National Debt: Debt accumulation for the United States

Trade Deficit: Differences between national imports and exports

Unemployment: Unutilized or underutilized labor

Economic Performance of an organization-

An assessment for an organization of its success in areas related to its assets, liabilities and overall market strength. Many business operators take regular stock on either a formal or less formal basis of the general economic performance of their company to make sure that it remains on the right track financially.

Performance indicators

The performance of an economy is usually assessed in terms of the achievement of economic objectives. These objectives can be long term, such as sustainable growth and development, or short term, such as the stabilization of the economy in response to sudden and unpredictable events, called economic shocks.

Economic indicators

To know how well an economy is performing against these objectives economists employ a wide range of economic indicators. Economic indicators measure macro-economic variables that directly or indirectly enable economists to judge whether economic performance has improved or deteriorated. Tracking these indicators is especially valuable to policy makers, both in terms of assessing whether to intervene and whether the intervention has worked or not.