7.3-7.6 AP HUG Vocab Quiz

Gross National Product (GNP)

Dollar amount of all goods and services produced within a country in one year

Gross National Income (GNI)

Dollar amount of an goods and services produced within a country in one year

Gross Domestic Product (GDP)

Dollar amount of all final goods and services produced within a country in one year

Remittances

Profits from the foreign company were leaving the country and going back to the home country

Per Capita

Each country’s total output can be divided by the country’s total population this produces a amount per person

Purchasing Power Parity (PPP)

Measure of what similar goods cost in different countries

Formal Sector

Portion of the economy that is monitored by the government so people will follow regulations and pay taxes

Informal Sector

Portion of the economy that is not monitored by government

Gini Coefficient

Measure of the distribution of income within a population

Life Expectancy

The number of years a person’s expected to live

Literacy Rate

Percentage of the population that can read and write

Gender Gap

Differences in the privileges afforded to males and females in a society

Gender Equality Index (GII)

Composite measured of several factors indicating gender disparity

Human Development Index (HDI)

Combines one economic measure with three social measures

Non-Governmental Organization (NGOs)

Programs enacted by governments and international non- profit agencies

Microcredit

Provide loans often to women to start or expand a business

Stages of Economic Growth Model

Focuses on the shift from traditional to modern forms of society

World Systems Theory/Core-Periphery Model

Divided countries into three types Core, Semi-periphery, and periphery

Dependency Model

Countries don’t exist in isolation but are part of an intertwined system in which countries are dependent on one another

Commodities

Raw Material

Commodity Dependence

When more than 60 percent of its exports are raw materials

Trade

Exchanging one item for another

Barter

System of exchange in which no money changes hand

Comparative Advantage

Ability to produce a good service at a lower cost than others

Complementarity

A country has income, goods, or services that another country desires

Free Trade

Laws or policies that reduced barriers to trade

Neoliberalism

A set of reforms that reduced governments regulations and taxation

Trading Blocs

Groups of countries that agree to a common set of trade rules

Mercosur

Southern common market

World trade Organization (WTO)

Monitor rules of international trade by providing a forum for negotiating trade deals, settling disputes between its members, supporting the needs of trade policies

International Monetary Fund (IMF)

Aid countries caught in need of financial assistance