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GDP growth

The percentage increase in the gross domestic product, which measures the economic performance of a country.

Gross National Income per capita

The total income of a country divided by its population, expressed in US dollars.

Poverty

The percentage of the population living on less than $1.90 a day.

Gini coefficient

A measure of income inequality within a population.

Hockey-stick growth

A term referring to a growth pattern that starts slowly and then rapidly increases.

Malthusian trap

A situation where population growth outpaces agricultural production, leading to scarcity.

Economic rent

The difference between what a resource earns and what it would earn in its next best alternative use.

Absolute advantage

The ability of an entity to produce more of a good or service than another entity using the same amount of resources.

Comparative advantage

The ability of an entity to produce a good or service at a lower opportunity cost than another entity.

Marginal rate of substitution (MRS)

The rate at which a consumer can give up one good in exchange for another good while maintaining the same level of utility.

Marginal rate of transformation (MRTS)

The rate at which one good can be transformed into another good in production.

Indifference curve

A graph showing a combination of goods that give a consumer equal satisfaction and utility.

Feasible set

The set of all possible alternatives that are attainable given the available resources.

Isoquant

A curve that represents all the combinations of inputs that yield the same level of output.

Isocost

A line that represents all combinations of inputs that cost the same total amount.

Constrained decision making

Making decisions based on limited resources and the need to prioritize.

Opportunity cost

The value of the next best alternative forgone when making a decision.