Unit 1.5 Development (Unit 7) - Economic Sectors & Measures of Development

Practice flashcards covering economic sectors, development indicators, and major development theories drawn from the notes.

What are Primary Economic Activities?

Extraction of raw materials and natural resources from the earth’s surface (e.g., mining, fishing, agriculture, forestry).

What are Secondary Economic Activities?

Processing and manufacturing raw materials into finished products (e.g., factories, manufacturing).

What are Tertiary Economic Activities?

Service sector that moves, sells, and trades products in primary and secondary sectors (e.g., retail, marketing, design, restaurants, shipping).

What are Quaternary Economic Activities?

Knowledge-based sector focusing on research and information creation and transfer (e.g., investment banking, real estate, education, software developers).

What are Quinary Economic Activities?

Highest levels of decision making in government and business (e.g., Congress, CEOs; decisions impact millions).

What distinguishes the Formal Economy from the Informal Economy?

Formal economy is regulated by the government and included in GDP & GNI; informal economy is not regulated and often consists of under-the-table work and unregulated activities.

What does the Gini Coefficient measure?

Income distribution within a population; values range from 0 to 1; higher values indicate greater inequality; MDCs typically have lower Ginis.

What does HDI stand for and what does it measure?

Human Development Index; a score from 0 to 1 that combines health, education, and income indicators to measure development.

What indicators are included in the Gender Inequality Index (GII)?

Maternal mortality, adolescent fertility, parliamentary representation, educational attainment, and labour force participation.

What is the Infant Mortality Rate (IMR)?

The number of deaths of infants under one year old per 1,000 live births.

What does TFR stand for and what does it measure?

Total Fertility Rate; the average number of children a woman would have over her lifetime.

How is Life Expectancy defined?

The average number of years a newborn is expected to live given current mortality rates.

What does GDP stand for and what does it measure?

Gross Domestic Product; total value of officially recorded goods and services produced within a country’s borders in a given year.

What does GNP stand for and how is it different from GDP?

Gross National Product; total value of goods and services produced by a country’s residents and corporations, including abroad.

What is GNI and how is it calculated according to the notes?

Gross National Income; GDP plus (exports − imports) per the notes.

What do MDCs and LDCs stand for, and what is a general development trend related to the primary sector?

MDC = More Developed Country; LDC = Less Developed Country; as a country develops, the primary sector declines.

Rostow’s Stages of Economic Growth: name the five stages.

Traditional Society; Preconditions to Take Off; Take Off; Drive to Maturity; High Mass Consumption.

What is a common criticism of Rostow’s Modernization Model?

It is based on industrialized, Western economies and assumes linear progress; it does not account for uneven development, globalization, sustainability, or colonial legacies.

What is Wallerstein’s World System Theory about?

A world economic system with core and periphery regions; core countries are dominant and exploit peripheral regions; interconnected through trade and colonial history.

Describe the Core-Periphery Model.

Core: economically/politically dominant with advanced infrastructure and high-skill production; Periphery: less wealth, lower education, low-skill, weak institutions; Semi-periphery lies between.

What does Dependency Theory propose about development?

Resources flow from the periphery to the core; cheap labor and raw materials support core economies, while periphery experiences underdevelopment.

What is Brandt Line?

A North-South divide: MDCs in the northern hemisphere and LDCs in the southern hemisphere; less accurate today due to NICs in the south.

What does sectoral structure imply about income in developed countries?

Higher per capita income in developed countries because more people work in the higher-paying tertiary sector.

How does development typically affect the primary sector?

The primary sector tends to decline as a country becomes more developed.

What energy patterns are associated with MDCs?

Highest per capita energy consumption; greater use of fossil fuels; increasing use of nuclear energy and hydroelectric power in MDCs.