AP Hug Unit 7 Vocab

Vocabulary flashcards based on lecture notes covering economic sectors, patterns, measures of development, and theories of development.

Primary Sector

The part of the economy that involves extracting raw materials directly from the earth or sea.

Secondary Sector

The part of the economy that involves manufacturing and processing raw materials into finished goods.

Tertiary Sector

The part of the economy that provides services to businesses and consumers.

Quaternary Sector

The part of the economy that involves information processing and advanced technology.

Quinary Sector

The part of the economy managed by top-level executives and government officials.

Least Cost Theory

A model developed by Alfred Weber according to which the location of manufacturing establishments is determined by the minimization of three critical expenses: labor, transportation, and agglomeration.

Core

Countries that have high levels of development, a capacity for innovation and a convergence of trade flows.

Semi-periphery

The industrializing, mostly capitalist countries which are positioned between the periphery and core countries.

Periphery

The less developed countries that receive a disproportionately small share of global wealth.

Gross Domestic Product (GDP)

The total value of goods produced and services provided in a country during one year.

Gross National Product (GNP)

The total value of goods and services produced by a country's citizens and companies, both domestically and internationally.

Gross National Income (GNI)

A measure of a country's income, including income earned abroad.

Formal Economy

The part of the economy that is officially recorded and taxed by the government.

Income Distribution

How a country's total GDP is distributed amongst its population.

Gender Inequality Index (GII)

A measure of gender inequality using reproductive health, empowerment, and labor market participation.

Human Development Index (HDI)

A composite index focusing on health, knowledge, and standard of living.

Rostow's Stages of Development

A model that conceptualizes five stages of economic growth from traditional society to high mass consumption.

Wallerstein's World System Theory

Theory describing the earth as one unified economic system, divided into core, semi-periphery, and periphery countries.

Dependency Theory

The idea that resources flow from poor and underdeveloped states (the periphery) to wealthy states (the core), enriching the latter at the expense of the former.

Commodity Dependence

When a country's economy relies heavily on the export of raw materials.