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Economically speaking, are we better off than we were ten years ago? Twenty years ago?
In their thirst for evidence on this issue, commentators seized on the recent report by the Census Bureau, which found that average household income rose by 5.2% in 2015. Unfortunately, that conclusion puts too much weight on a useful, but flawed and incomplete, statistic. Among the more significant problems with the Census's measure are that: 1) it excludes taxes, transfers, and compensation like employer-provided health insurance; and 2) it is based on surveys rather than data. Even if precisely measured, income data exclude important determinants of economic well-being, such as the hours of work needed to earn that income.
While thinking about the question, we came across a recently published article by Charles Jones and Peter Klenow, which proposes an interesting new measure of economic welfare. While by no means perfect, it is considerably more comprehensive than average income, taking into account not only growth in consumption per person but also changes in working time, life expectancy, and inequality. Moreover, it can be used to assess economic performance both across countries and over time.
The Jones-Klenow method can be illustrated by a cross-country example. Suppose we want to compare the economic welfare of citizens of the U.S. and France in 2005.
In 2005, as the authors observe: real consumption per person in France was only 60% as high as the U.S., making it appear that Americans were economically much better off than the French on average. However, that comparison omits other relevant factors: leisure time, life expectancy, and economic inequality. The French take longer vacations and retire earlier, so typically work fewer hours; they enjoy a higher life expectancy, presumably reflecting advantages with respect to health care, diet, lifestyle, and the like; and income and consumption are somewhat more equally distributed there than in the U.S. Because of these differences, comparing France's consumption with the U.S.'s overstates the gap in economic welfare.
Similar calculations can be used to compare the U.S. and other countries. For example, this calculation puts economic welfare in the United Kingdom at 97% of U.S. levels, but estimates Mexican well-being at 22%.
The Jones-Klenow measure can also assess an economy's performance over time. According to this measure, as of the early-to-mid-2000s, the U.S. had the highest economic welfare of any large country. Since 2007, economic welfare in the U.S. has continued to improve. However, the pace of improvement has slowed markedly.
Methodologically, the lesson from the Jones-Klenow research is that economic welfare is multi-dimensional. Their approach is flexible enough that in principle other important quality-of-life changes could be incorporated-for example, decreases in total emissions of pollutants and declines in crime rates.
1
What does the author think of the 2015 report by the Census Bureau?
A.It is based on questionable statistics.
B.It reflects the economic changes.
C.It evidences the improved-welfare.
D.It provides much food for thought.
本题答案:
  • A
  • B
  • C
  • D
  • 参考答案:A
  • 系统解析:
    由题干中的2015 report by the Census Bureau定位到第二段第一句。推理判断题。本题考查作者对美国人口普查局在2015年发表的报告的看法。定位句介绍了美国人口普查局报告的内容,下一句接着用转折词Unfortunately引出作者的看法,即“这一结论过分强调的统计数据虽然有用,但存在错误且并不完整。”A项中的based on和questionable statistics分别对应原文中的puts too much weight on和flawed and incomplete, statistic,故为答案。
2
What does the author say about the Jones-Klenow method?
A.It is widely used to compare the economic growth across countries.
B.It revolutionizes the way of measuring ordinary people's livelihood.
C.It focuses on people's consumption rather than their average income.
D.It is a more comprehensive measure of people's economic well-being.
本题答案:
  • A
  • B
  • C
  • D
  • 参考答案:D
  • 系统解析:
    由题干中的Jones-Klenow method和题文同序原则定位到第三段。细节辨认题。本题考查作者对琼斯和克列诺的方法的看法,应该注意情感态度类形容词的使用。由第三段第二句可知,虽然琼斯和克列诺的方法并不完美,但它比只考虑平均收入的方法要全面很多。因此,D“它是衡量人民经济幸福感的比较全面的方法”为答案。
3
What do Jones and Klenow think of the comparison between France and the U. S. in terms of real consumption per person?
A.It reflected the existing big gap between the two economies.
B.It neglected many important indicators of people's welfare.
C.It covered up the differences between individual citizens.
D.It failed to count in their difference in natural resources.
本题答案:
  • A
  • B
  • C
  • D
  • 参考答案:B
  • 系统解析:
    由题干中的comparison between France and the U.S.定位到第五段前两句。推理判断题。定位句捉到,只比较两国人均消费水平这种对比方法“忽略了其他相关因素:休闲时间、预期寿命和经济不平等”。所以,B“它忽略了民众福利的很多重要因素”为答案。
4
What is an advantage of the Jones-Klenow method?
A.It can accurately pinpoint a country's current economic problems.
B.It can help to raise people's awareness of their economic well-being.
C.It can diagnose the causes of a country's slowing pace of economic improvement.
D.It can compare a country's economic conditions between different periods of time.
本题答案:
  • A
  • B
  • C
  • D
  • 参考答案:D
  • 系统解析:
    由题干中的Jones-Klenow method和题文同序原则定位到倒数第二段第一句。推理判断题。本题考查琼斯和克列诺的方法有什么优点。由定位句可知,他们的方法还能用来评估一个国家不同时期的经济表现。所以,D“它可以比较一个国家不同时期的经济状况”为答案。
5
What can we infer from the passage about American people's economic well-being?
A.It is much better than that of their European counterparts.
B.It has been on the decline ever since the turn of the century.
C.It has not improved as much as reported by the Census Bureau.
D.It has not been accurately assessed and reported since mid-2000s.
本题答案:
  • A
  • B
  • C
  • D
  • 参考答案:C
  • 系统解析:
    由题干中的American和四个选项的内容定位到原文倒数第二段最后两句。推理判断题。定位句指出,自2007年以来,美国的经济福利持续改善。不过,改善的速度明显放缓。C“它不像人口普查局报告的那么好”符合此意,故为答案。
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