final Flashcards
gross domestic product per capita
the value of output produced per inhabitant of a country during a given year
purchasing power parity (PPP)
purchasing power parity exchange rates are based on the prices of all goods and services, and are constructed such that the same basket of goods in one country has the same dollar value in all countries
secondary school enrollment rates
measured by dividing the number of pupils enrolled in secondary school, regardless of age, by the population in the theoretical age group for secondary education
quantile ratio
a ratio of the average income in the highest quantile over the average income in the lowest quantile
purchasing power parity exchange rates
calculated so that a typical basket of goods in two countries, including non-tradables, would have the same value
poverty line
the income required to purchase 2,000 calories of food, taking into account food habits and preferences
poverty gap
assesses the people below the poverty line according to their distance from the line
poverty headcount
the number of people in a given population who are below the poverty line
poverty headcount ratio
the proportion of that population that is below the poverty line, H = poverty headcount / the population of a country
gini coefficient:
a single number that enables us to compare inequality across countries, defined as twice the area between the egalitarian diagonal and the lorenz curve
lorenz curve
plots the cumulative income share of different quantiles for the whole range of income distribution
average productivity
how much, on average, one worker contributes to national output in a given year
capital intensity
how much capital there is per worker
constant returns to scale
if we multiply each factor by the same number, output is also multiplied by that number
diminishing marginal productivity
the more labor (or capital) added to the economy,the smaller the additional output that will be generated.
