7.3 : Measures of Development (Pgs. 462-470) Flashcards
Gross National Product (GNP)
The dollar amount of all goods and services produced by a country’s citizens in one year. GDP + net property income from abroad. This net income from abroad includes dividends, interest and profit.
Gross National Income (GNI)
The dollar amount of all goods and services produced by a country’s citizens in one year. (similar to GNP) includes the value of all goods and services produced by nationals – whether in the country or not.
Gross Domestic Product (GDP)
The dollar amount of all final goods and services produced within a country in one year.
Remittances
The profits from a foreign-owned company were leaving the country and going back to the home country.
Per Capita
The amount per person.
Purchasing Power Parity (PPP)
A measure of what similar goods cost in different countries.
^ Comparing Terms for Level of Development (Chart)
Economic Level (based on GDP/capita): Low End = Low income, Middle Range = Middle income, High end = High income
Economic Development (based on overall economic characteristics) Low End = developing economies, Middle Range = Emerging economies, High End = Advanced economies
Level of Industrialization (based on amount of industry): Low End = Nonindustrialized, Middle Range = Newly industrialized economies (NIC), High End = Postindustrial economy
Human Development Index (based on economic and social factors): Low End = Low HDI, Middle Range = Medium HDI, High End = High and very high HDI
World Systems Theory (based on the role in the world economy): Low End = Periphery country, Middle Range = Semiperiphery country, High End = Core country
Stages of Economic Growth (based on types of economic activity): Low End = stage 1; traditional society & stage 2; precondition for take-off, Middle Range = stage 3; take-off, High End = stage 4; drive to maturity & stage 5; high mass consumption
Income Classification (world bank designation): Low income -> Lower-middle income -> Higher-middle income -> High income
Formal Economic Sector
The portion of the economy that is monitored by the government, so people in it follow regulations and pay taxes.
Informal Economic Sector
The portion of the economy that is not monitored by the government.
^ Global energy consumption trends
The U.S. includes about 5 percent of the world’s population but consumes about 20 percent of all resources. More than 250 million BTUs in the U.S., Canada, and Australia. 150 to 249 million BTUs In Russia. 75 to 149 million BTUs near the south of South America and East Asia. Under 74 million BTUs near India, and most of Africa, and north of South America.
Gini Coefficient
One measure of the distribution of income within a population.
^ Regional patterns of economic development
Africa and South America: Africa has growing economies, but average incomes remain low compared with more-developed countries. South America has both middle- and low-income countries.
Asia: Has had the largest income gains in the past five decades. Countries have adopted policies of strong government support for education and business. China and India have shown impressive economic developments.
North America and Europe: Relatively prosperous over the past century. 16 percent of world pop. they produce 55 percent of global GDP.
Social measures of development
- TFR
- Infant Mortality Rate
- Life expectancy
- Literacy Rate
Life Expectancy
The number of years a person is expected to live.
Literacy Rate
The percentage of the population that can read and write (usually at an 8th-grade level or higher).
