All
Section
Appendix
6.4

The Economic Engine

While economic growth has improved human wellbeing, there are cases where these come apart. AI systems guided by economic incentives can drive competition, efficiency, and growth, but might also undermine wellbeing in some ways, for example by increasing inequality.

No items found.

Review Questions

What are some key ways that AIs are likely to impact the economy if deployed by businesses?

Answer:

AIs can transform industries through automation, enable new business models, and drive economic growth, but may also exacerbate inequality and market failures.

View Answer
Hide Answer

What are diminishing marginal returns and how might this lead a utilitarian AI to promote equality?

Answer:

Diminishing returns means added resources benefit people less the more they already have. A utilitarian AI recognizing this would favor more equitable distribution.

View Answer
Hide Answer

What are some notable limitations of common economic measures like GDP in capturing societal wellbeing?

Answer:

GDP overlooks unpaid work, overvalues harmful production, and equates ability to pay with social value. It is not a complete measure of prosperity.

View Answer
Hide Answer