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The economic problem · 17 of 19

The doughnut model

Name the doughnut's two boundaries and say where an economy falls short or overshoots

Key terms
Doughnut model
The doughnut model pictures an economy's goal as meeting everyone's basic needs without pushing the natural systems that people depend on past safe limits.
Economic growth
Economic growth is an increase over time in the real output of goods and services that an economy produces.

The doughnut has two boundaries, and an economy can fall outside it two ways

Can you name the doughnut's two boundaries, and the two ways of falling outside the space between them?

Each boundary is made of several dimensions, and each is judged separately.