Economic Terms and Definitions

A comprehensive set of vocabulary flashcards covering key economic terms and definitions.

Industrialization

The process by which a society transforms from an agrarian economy to one based on the manufacturing of goods.

Deindustrialization

The decline of manufacturing in a region or economy, transitioning to service-based industries.

Free Trade Zone

An area where goods can be imported, manufactured, and exported without customs duties.

GDP (Gross Domestic Product)

The total value of all goods and services produced within a country in a specific time period.

GNP (Gross National Product)

The total value of all goods and services produced by the residents of a country, including abroad, in a specific time period.

GNI (Gross National Income)

The total income received by a country's residents, including wages, profits, rents, and taxes.

Break of Bulk Point

A location where goods are transferred from one mode of transport to another.

Microloan

A small loan that is typically given to individuals who do not have access to traditional banking services.

Comparative Advantage

The ability of a country to produce a good at a lower opportunity cost than another country.

Agglomeration

The clustering of businesses and industries in a particular area to benefit from proximity.

Growth Poles

Areas where economic development is concentrated and which can promote growth in surrounding areas.

Outsourcing

The practice of obtaining goods or services from an outside supplier instead of producing them internally.

UN SDGs (United Nations Sustainable Development Goals)

A set of 17 global goals designed to be a 'blueprint to achieve a better and more sustainable future for all'.

Human Development Index (HDI)

A composite statistic of life expectancy, education, and per capita income indicators used to rank countries.

Gender Inequality Index

A composite measure reflecting disparity between the genders in terms of reproductive health, empowerment, and labor market.

Ecotourism

Responsible travel to natural areas that conservation and improves the well-being of local people.

Primary Economic Sector

The sector of the economy that extracts raw materials from the earth.

Secondary Economic Sector

The sector of the economy that manufactures and processes raw materials into goods.

Tertiary Economic Sector

The sector of the economy that provides services rather than goods.

Quaternary Economic Sector

The sector of the economy that involves knowledge-based activities, including education and research.

Quinary Economic Sector

The sector of the economy that focuses on high-level decision making and services such as education, healthcare, and scientific research.

Core Country

A country that is highly developed with a strong economy and advanced technology.

Semi-Periphery Country

A developing country that is in the process of industrialization and has characteristics of both core and periphery nations.

Periphery Country

A country that is less developed with a weak economy, often reliant on exporting raw materials.

Postindustrial Economy

An economy that has transitioned from manufacturing to a service-oriented base.

Dependency Theory

A theory that suggests that resources flow from the periphery (poor states) to the core (wealthy states), causing a dependency.