AP HUG Unit 6: Economic Development

Human Development Index (HDI)

An indicator of the level of development for each country. Determined by income, literacy, education, and life expectancy.

Gross Domestic Product (GDP)

Total value of officially recorded goods and services produced by citizens within a country per year.

Gross National Product (GNP)

Total value of goods and services by citizens and corporations of a country, including foreign investments.

Gross National Income (GNI)

The most accurate measure of wealth, accounting for the impact of trade; calculated as GDP plus exports minus imports.

Primary Economic Activities

Jobs involving the extraction of raw materials and natural resources from the Earth’s surface, such as mining, farming, and fishing.

Secondary Economic Activities

Jobs that involve processing and manufacturing raw materials into finished products.

Tertiary Economic Activities

Jobs in the service sector focusing on moving, selling, and trading products from primary and secondary sectors.

Quaternary Economic Activities

Knowledge-based sector focusing on research and information creation and transfer.

Quinary Economic Activities

The highest level of decision making, including top officials in government and business.

Gini Coefficient

A measure of income distribution within a population, where a lower value indicates less income inequality.

Total Fertility Rate (TFR)

The average number of children per woman, generally higher in less developed countries (LDCs).

Infant Mortality Rate (IMR)

The number of deaths of infants under one year old per 1,000 births, usually higher in LDCs.

Access to Healthcare

The availability of medical services, typically lower in LDCs.

Life Expectancy

The average number of years a person is expected to live based on mortality rates when they were born.

Literacy Rates

The percentage of literate individuals in a population, generally lower in LDCs.

Cottage Industry

Industry in which the production of goods and services is based in homes rather than factories. The start of Industry.

Site Factor

Physical features of a place related to the costs of business production, including land, labor, and capital.

Situation Factors

Features of a location's surrounding area related to transportation costs for raw materials and finished goods.

Outsourcing

The practice of transferring certain jobs to LDCs by transnational corporations.

Special Economic Zone (SEZ)

Specific area within a country with tax and investment incentives to attract foreign and domestic businesses.

Free Trade Zone

Tax-free area where goods can be landed and manufactured without customs intervention.

Growth Pole

A concentrated area experiencing strong economic growth due to the development of key industries.

Fordist

A form of mass production assigning each worker a specific task to perform repeatedly.

Post-Fordist

A flexible set of production practices where components are made in different places.

Renewable Energy

Sources produced in nature more rapidly than they are consumed, such as solar and wind power.

Non-Renewable Energy

Sources of energy produced in nature more slowly than they are consumed, like oil and coal.

The Paris Agreement

A commitment by nearly every country to lower greenhouse gas emissions to curb climate change.

Carbon Taxes

A financial charge intended to reduce emissions by taxing the largest greenhouse gas producers.

Cap and Trade

A system in which governments allocate or sell permits for emitting a specific amount of greenhouse gases.