Econ 333 Comparative Development chp1 – Vocabulary Flashcards

Vocabulary flashcards covering key concepts from the Comparative Development lecture notes, including GDP, HDI, income categories, inequality, well-being, and related metrics.

Gross Domestic Product (GDP)

The market value of all final goods and services produced within a country in a given period.

GDP per capita

GDP divided by the population; the average income per person.

GDP (PPP) per capita

GDP per capita measured using Purchasing Power Parity (PPP) to account for cost of living differences, expressed in international dollars.

Income categories

Classifications of countries by income: Low income (≤ $1,025), Lower-middle ($1,026–$4,035), Upper-middle ($4,036–$12,475), High income (>$12,476).

Developing countries

Countries with low, lower-middle, or upper-middle income; located across Africa, the Middle East, Asia, Latin America, and parts of Europe.

Developed countries

Countries with high income; typically in Western Europe, North America, Japan, Australia, and New Zealand.

Gini coefficient

A measure of income inequality within a country; 0% means perfect equality and higher values indicate greater inequality.

Life expectancy index

HDI component calculated as (Life expectancy − 25) / (85 − 25); normalizes life expectancy for HDI.

Income index

HDI component based on the logarithm of per capita income between PPP$100 and PPP$40,000; used to compute the HDI.

Education index

HDI component combining adult literacy and gross enrollment; in the given method: Education index = (2/3)(adult literacy index) + (1/3)(gross enrollment index).

Human Development Index (HDI)

A composite index ranking countries by longevity, knowledge, and living standards; calculated as the cube root of the product of the three indices: (Income index × Life expectancy index × Education index)^(1/3).

Night Light

Satellite images of night-time lights used to indicate human presence and development levels; serves as a proxy for the human footprint.

Subjective Well-Being (SWB)

A global projection of happiness; often depicted as high SWB versus low SWB in global comparisons.

Happiness and Life Satisfaction

Measures of subjective well-being based on perceived happiness and satisfaction with life.

Doubling time

The time required for a variable to double in size; formula: Doubling Time = 70 ÷ Growth Rate (percent).

Real GDP growth rate

The rate at which a country’s real GDP grows, adjusted for inflation, used to compare economic growth across countries.

GDP per capita vs. income distribution

GDP per capita is an average and may hide income inequality; it does not reflect how income is distributed within a country.

Life satisfaction map legend

A visual scale showing levels of life satisfaction/happiness across populations, used to compare well-being globally.

World by Income

Classification of the world or countries by income levels (low, middle, high) to analyze development and living standards.

Per capita GNI

the Gross National Income (GNI) per person, representing the total income of a country's residents (including income from abroad) divided by its mid-year population

Income per capita, or per capita income,

a measure of average income derived by dividing a region's total income by its total population, including children and the elderly, to reflect the average income per person