Key terms

Question 1

Define development.

Answer 1

• A complex series of inter-related processes which lead to a higher standard of living and quality of life.
• it can be measured in terms of economic, social, political and environmental development as is done by the Cable Model

Question 2

Define economic development.

Answer 2

• The growth of a country’s economy leading to a rise in the general level of prosperity.
• It is only one aspect of development, but often triggers the improvement of other aspects of the development continuum.
• ‘Human development is the end - economic growth is the means’

Question 3

Define inequality.

Answer 3

Unevenness or difference between people or places.

Question 4

Define GDP (gross domestic product)

Answer 4

• The total value of goods and services produced by a country over a specified period, normally one year.
• GDP is expressed in per capita (head of population) terms.

Question 5

Define GNI (gross national income)

Answer 5

• The GDP of a country plus all the income earned from investments abroad, but minus all income earned in the country by foreigners.
• GNI is expressed in per capita (head of population) terms.

Question 6

Define real economic growth

Answer 6

the economic growth rate adjusted for inflation

Question 7

Define Quality of life

Answer 7

The social and psychological condition of people in their everyday lives.

Sometimes expressed using HDI.

Question 8

Define informal sector

Answer 8

• made up of activities that are not officially recognised in the economy
• e.g selling on the street

Question 9

What is the Gini coefficient?

Answer 9

• statistical measure of the degree of inequalities

- ranges from 0 to 100, the higher the value, the more uneven the distribution

Question 10

Define standard of living.

Answer 10

The degree of wealth and material comfort available to a person or community.

Question 11

Define globalisation

Answer 11

the increasing interconnection and interdependence of the world’s economic, cultural and political systems.

Question 12

What is the corruption index?

Answer 12

• An index measuring how corrupt the public services are perceived to be in that country.
• Ranges from 1-10, 10 being totally clean.

Question 13

Define the global shift

Answer 13

the large-scale fliter-down of economic activity from MEDCs to NICs and LEDCs.

Question 14

Define Foreign Direct Investment

Answer 14

overseas investments in physical capital by transnational corporations

Question 15

Internationalism

Answer 15

the extension of economic activities across national boundaries.