Risk Society and Stability
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Questions and Answers

Who coined the term 'Risk Society'?

  • Garret Hardin
  • Milton Friedman
  • Ulrich Beck (correct)
  • John Maynard Keynes

    • What is stability in the context of economics?

  • Fluctuations in economic activity
  • High inflation and volatility in financial markets
  • Government interference in economic matters
  • Firmness in position, permanence, and resistance to change (correct)

    • Which economist advocated for government interference in harsh economic times?

  • John Maynard Keynes (correct)
  • Ulrich Beck
  • Garret Hardin
  • Milton Friedman

    • What is monetarism in the context of economics?

    <p>Stabilization through control of money in circulation</p> Signup and view all the answers

    What is the term used to describe the period of high growth and low volatility?

    <p>Great Moderation</p> Signup and view all the answers

    What is the 'Tragedy of the Commons'?

    <p>Exhaustion of public goods due to free market economy</p> Signup and view all the answers

    What is the primary concern of sustainability?

    <p>Long-term capacities of a system to exist</p> Signup and view all the answers

    What is the title of the study that analyzed the connection between economic growth and scarcity of resources?

    <p>The Limits to Growth</p> Signup and view all the answers

    What is the primary focus of the Solow-Swan Model?

    <p>The sheer increase of the amount of resources added to input</p> Signup and view all the answers

    Who is credited with developing the concept of Human Development Index (HDI)?

    <p>Mahbub ul Haq</p> Signup and view all the answers

    What is the main concern of Nicolas Stern in his 2007 work?

    <p>The ecological challenges for sustainability</p> Signup and view all the answers

    What is the purpose of the Roll-Over Effect in measuring economic growth?

    <p>To express output in monetary value</p> Signup and view all the answers

    What is the primary approach of Neo-liberalism?

    <p>Viewing markets as the most efficient way of social coordination</p> Signup and view all the answers

    What is the main difference between the Amended Growth approach and the More Growth approach?

    <p>The Amended Growth approach uses multiple indexes, including HDI</p> Signup and view all the answers

    What is the name of the index that includes arts, culture, and recreation, among other factors?

    <p>Canadian Index of Wellbeing</p> Signup and view all the answers

    Who coined the concept of Gross National Happiness?

    <p>Jigme Singye Wangchuk</p> Signup and view all the answers

    Study Notes

    Risk Society

    • Coined by Ulrich Beck in 1986
    • Main reason for current problems: inability of modern societies to produce stability and sustainability

    Stability

    • Firmness in position, permanence, and resistance to change
    • Avoiding large swings in economic activity, high inflation, and excessive volatility in exchange rates and financial markets
    • Indexes describe the economy in short-term categories

    Challenges to Stability

    • Excessive highs and lows
    • Government should interfere and raise spending in harsh times to prevent long-lasting depression (John Maynard Keynes)
    • Monetarism: stabilization could be produced through control of the amount of money in circulation (Milton Friedman)

    Great Moderation

    • Sophisticated stabilization policy measures could guarantee high growth without upsetting volatilities (Bernanke, 2004)
    • 1990s: many collapses in the world economy, including the Asian Financial Crisis in 1997, Russian Crisis, and Argentina Disaster in 1999
    • Internet Bubble (2000): new technologies made economic process faster and less predictable, financial markets boosted by speed and complexity of internet-backed transactions

    Sustainability

    • Long-term capacity of a system to exist
    • Development that meets the needs of the present without compromising the ability of future generations to meet their own needs
    • "Tragedy of the Commons" (Garret Hardin, 1968): public goods got exhausted by actors in a free market economy
    • "The Limits to Growth" (Club of Rome, 1972): connection between economic growth and scarcity of resources

    Growth Models

    • Solow-Swan Model (1950s): increase of resources added to input could lead to diminishing marginal returns
    • New Growth Theory (Paul Romer and Robert Lucas, 1980s): endogenous factors like human capital and education recognized as crucial for growth

    Approaches to Growth

    • Roll-Over Effect: domination of GDP index in measurements of national economies' performance
    • More Growth: the more goods produced, the better for economies
    • Nicolas Stern (2007): ecological challenges for sustainability as classical economic externalities
    • Amended Growth: GDP is just one important index; other indexes include HDI, Gross National Happiness, and Canadian Index of Wellbeing

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    Description

    This quiz explores the concept of Risk Society, coined by Ulrich Beck, and its relation to stability in modern societies, including economic stability and sustainability.

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