1.5 AP HUGE Vocab

Gender Inequality Index (GII): a statistic created by the United Nations to measure how much development is lost because of inequalities between men and women

Human Development Index (HDI): a statistic created by the United Nations to try to measure how economically developed a country is - seen as more complete picture than just GDP PPP per capita

Informal economy: the part of an economy that is neither taxed, nor monitored by any form of government including illegal activities

Literacy Rate: the percentage of people in an area that can read and write

Industrialization: the process by which an economy is transformed from primarily agricultural to one based on the manufacturing of good

Standard of living: level of wealth available to a person or community

Least cost theory: Alfred Weber's theory that tries to explain and predict the locational pattern of industry

Core: in World's Systems Analysis, the core are the powerful, wealthy countries that have great influence on the world economy

Periphery: in World's Systems Analysis, the periphery are the least economically developed countries that have little influence over the world's economy

Semi-periphery: in World's Systems Analysis, the semi-periphery is the more-wealthy LDCs that have some influence on world economies

Sectors of the economy: separating jobs into segments of the economy based on the purpose of their job (primary, secondary, tertiary, quaternary, quinary)

Formal economy: economic activities that take place inside the official, legal framework, pay taxes and are monitored by the government

Dependency theory: a model of economic and social development that explains global inequality in terms of the historical exploitation of poor nations by rich ones

Microloans: a small sum of money lent at low interest to a new business

Mass consumption: the purchase of standardized products or services by large numbers of customers

Wallerstein's World Systems Theory: The world economy has one market and a global division of labor, Although the world has multiple states, almost everything takes place within the context of the world economy, The world economy has a three-tier structure. (Peripheral, Semi-peripheral, Core)

Rostow's Stages of Development: traditional society Stage 1, preconditions for take-off Stage 2, take-off Stage 3, drive to maturity Stage 4, high mass consumption Stage 5

commodity dependence: economic dependence on exports of agricultural and mineral raw materials

Industrial Revolution: A series of improvements in industrial technology that transformed the process of manufacturing goods.

Economic Sectors: "sections" of an economy. The three sectors are the primary, secondary, and tertiary sectors.

Gender Empowerment Measure (GEM): a statistic created by the United Nations to measure the inequalites between men and women in countries

Gender-related Development Index (GDI): a statistic that is an offshoot of the HDI that measures gender gaps in life expectancy, education, and incomes

Gross Domestic Product (GDP): a monetary measurement of all the goods and services produced in a year in a country

Gross National Product (GNP): a monetary measurement of all the goods and services produced by residents of a country (NOT citizens in other countries)

Gross National Income (GNI): a monetary measurement of all the goods and services produced by citizens (including citizens overseas) in a year in a country but NOT non-citizen residents

substitution principle: In industry, the tendency to substitute one factor of production for another in order to achieve optimum plant location.