Economic Development and Growth Theories

A collection of vocabulary flashcards focusing on key terms related to economic development, growth theories, and central place theory.

Unfreedoms

Circumstances that limit individuals' choices and opportunities, such as poverty, lack of education, and poor health services.

Economic Development

A qualitative process involving structural change and improving the life conditions of individuals, often through policies that expand capabilities.

Economic Growth

A quantitative measure characterized by increases in GDP and overall economic size.

Supply-Oriented Growth Theory

An economic growth approach focusing on improving production capacity through investments in capital, labor, and technology.

Demand-Oriented Growth Theory

An economic growth approach that emphasizes boosting consumption and demand through government spending and exports.

Inequality in Economics

Inequality can cause socio-economic instability and weaken aggregate demand, thus harming economic growth.

Central Place Theory

A spatial theory in urban economics that explains the size and spacing of settlements based on the thresholds and ranges of goods and services.

Threshold (central place theory)

The minimum market size needed to support a business or service.

Range (central place theory)

The maximum distance consumers are willing to travel to purchase a good or service.

Order of Goods/Services

The hierarchy of goods based on necessity, with lower-order goods needed more frequently and located closer to consumers.

Input-Output Table

A matrix that represents the economic interactions between different sectors, showing how industries depend on one another.

Multiplier Effect

The phenomenon where an increase in economic activity in one area leads to increased activity in other areas due to inter-industry linkages.

Economic Base Model

A model used to analyze the economic activity of a region by distinguishing between basic (export) and local (non-basic) industries.

Fiscal Stimulus

Government measures, particularly spending and tax cuts, intended to encourage economic growth during downturns.