Economics 1.5 vocab - economic development

Purchasing power parity

an exchange rate based on the ratio of the price of a basket of a products in different countries

Human development index

Measure of living standards which takes into account income education and life expectancy

Absolute poverty

Condition where people’s income is too low to enable them to meet their basic needs

Relative poverty

condition where people are poor in comparison to others in the country. Their income is too low to enable them to enjoy the average standard of living in their country

Vicious circle of poverty

a situation where people become trapped in poverty

Emigration

the act of leaving the country to live in another country

Birth vs Death rate

Birth rate - number of births in a year per 1000 population in a year

Death rate- ‘‘ deaths ‘‘

Infant mortality rate

the number of deaths per 1000 live births in a year

Population pyramid

diagram showing the age and gender structure of a country’s population

Optimum population

size of population which maximizes the country’s output per head

Economic development

improvement in economic welfare