11.4 Characteristics of countries at different levels of Economic Development Flashcards
Purchasing power parity (PPP)
a way of comparing international living standards by using an exchange rate based on the amount of each currency needed to purchase the same basket of goods and services.
National debt
the total amount of government debt
Multidimensional Poverty Index (MPI)
a composite measure of deprivation in terms of the proportion of households that lack the requirements for a reasonable standard of living.
Measurable Economic Welfare (MEW)
a composite measure of living standards that adjusts GDP for factors that reduce living standards and factors that improve living standards.
Human Development Index (HDI)
a composite measure of living standards that includes GNI per head, education and life expectancy
Kuznets curve
a curve that shows the relationship between economic growth and income inequality
Primary sector
industries involved in farming and extracting natural resources
Secondary sector
industries that manufacture products
Tertiary sector
industries that produce services
Quaternary sector
industries involved in providing knowledge- based services
Malthusian theory
the view that population grows in geometric progression whereas the quantity of food grows in arithmetic progression
Optimum population
the size of population that maximises GDP per head
Dependency ratio
the proportion of the economically inactive to the labour force
