AMSCO AP Human Geography - Unit 7.3: Measures of Development

gross national product (GNP) / gross national income (GNI)

the dollar amount of all goods and services produced by a country’s citizens in one year. This counts for ALL citizens regardless of where the citizens are or live.

gross domestic product (GDP)

the dollar amount of all final goods and services produced within a country in one year. Money counts if it is generated WITHIN THE COUNTRY

remittance

the profits from a foreign-owned company; migrant workers sending earnings back to family members in their home country

per capita

how much money one person makes in a country on average; “per person”

purchasing power parity (PPP)

a measure of what similar goods cost in different countries

formal economic sector

the portion of the economy that is monitored by the government, so people in it follow regulations and pay taxes. This is the sector of economic activity measured by GDP, GNP, and GNI

informal economic sector

the portion of the economy not monitored by the government. It can be illegal, such as drug dealers, or legal, such as tips or shoveling a driveway for cash

Gini Coefficient / Gini Index

a measure for the distribution of income within a population between 0 and 1. The higher the number, the greater the income inequality, and the lower the number, the less the income inequality; similar incomes

life expectancy

the number a years a person is expected to live

literacy rate

the percentage of people of a population that can read and write

gender gap

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

Gender Inequality Index (GII)

a composite measure of several factors indicating gender gaps, such as reproductive health (maternal mortality rate and teen births), empowerment (the share of government seats held by each gender and the ratio of adult females and males with some secondary education), and labor market participation (the rate of female and male participation in the labor force 15 or older)

Human Development Index (HDI)

the more “overall development.” Combines one economic measure broken down by gender (GNI per capita) with three social factors applying to all people: life expectancy, expected years of schooling, and average years of schooling. Scores range from 0 to 1; the closer to 1 the better the overall development