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Primary sector
extraction of raw materials and natural resources from the earth’s surface (mining, fishing, agriculture, etc.)
Secondary sector
processing and manufacturing raw materials into a finished product (factories and manufacturing)
Tertiary sector
involves jobs that provide services to people or businesses rather than gathering or making physical goods (retail, marketing, design, restaurants, shipping)
Quaternary sector
knowledge-based sector, focusing on research and information creation and transfer (investment, banking, real estate, college professors, education)
Quinary sector
highest level of decision-making, includes top officials in government and business (congress, CEOs, etc.)
GDP (Gross Domestic Product)
total value of officially recorded goods and services by the citizens and corporations within a country’s borders in a given year
goods + services = GDP
GNP (Gross National Product)
total value of goods and services by the citizens and corporations of a country as well as foreign investments in a given year
domestic + international goods + services = GNP
GNI (Gross National Income)
most accurate measure of wealth, because it accounts for the impacts of trade
GDP + (exports - imports) = GNI
Formal economic sector
regulated and/or taxed by the government, included in GDP and GNI, typical professions
Informal economic sector
mostly illegal products that are sold and/or NOT regulated by the government (drugs, black market goods, babysitting, “under the table” work like landscaping or house cleaning)
Gini Coefficient
measures the distribution of income within a population. Values between 0-1: The HIGHER the #, the HIGHER the income inequality
Fossil fuels
a non-renewable natural energy source made from the buried, decayed remains of ancient plants and animals that lived millions of years ago (coal, oil/petroleum, natural gas)
Renewable energy
energy sources that can be sustained if managed properly (e.g., solar, wind, tidal, geothermal; sometimes contrasted with fossil fuels)
Per capita
standard measurement used to divide a total amount by the number of people in a group (per capita = per person)
TFR (Total Fertility Rate)
calculation of the average number of children per woman
IMR (Infant Mortality Rate)
calculation of deaths of children under 1 year for every 1,000 live births in a given year
Life expectancy
average number of years a person is expected to live based on mortality rates when they were born
Literacy rate
the percentage of a given population at or above a specific age that can read and write a simple statement about everyday life
HDI (Human Development Index)
measures a country's overall social and economic well-being. Score between 0-1: LOWER the score, LESS developed, HIGHER the score, MORE developed
GII (Gender Inequality Index)
measures how much a country's potential is lost due to inequality between men and women. Score between 0-1: HIGH value, HIGH inequality, LOW value, LOW inequality
MDC
MORE Developed Country
LDC
LESS Developed Country
NIC
Newly Industrialized Country
Rostow’s stages of economic growth
modernization model proposing five stages from traditional primary economies to an age of mass consumption, emphasizing investment and industrial takeoff
Wallerstein’s World Systems
Wallerstein’s framework describing a hierarchical global economy of core, semi-periphery, and periphery roles shaped by unequal divisions of labor
Brandt Line
an imaginary, curved line drawn in the 1980s that separates the rich, developed countries of the Global North from the poorer, developing countries of the Global South