Human Development Index (HDI)
A composite measure of three indicators of the quality of life in different countries: life expectancy at birth, educational attainment, and whether the average incomes are sufficient to meet the basic needs of life in that country.
Indicator of level of development for each country, constructed by United Nations, combining income, literacy, education, and life expectancy.
Levels of economic activity
Primary Activities - Involve gathering raw materials to use in the making of a final product; Ex: Timber
Secondary Activities - Involve adding value to materials by changing their form; Ex: Manufacturing automobiles
Tertiary Activities - Involve providing business or professional services; Ex: Salespeople & teachers
Quaternary Activities - Provide info, management and research services by highly-trained persons
the structure that underlies and makes possible all economic activity in a country (communications, roads, bridges, schools, etc...)
The percentage of a country's people who can read and write.
Infant Mortality rate
The total number of deaths in a year among infants under one year old for every 1,000 live births in a society.
(also called Rostow's Development Model):
Stage 1:Traditional Society - Agriculturally based
"Nonproductive" activities- Military, religion
Stage 2: Preconditions take off: Innovative economic activities
Invest in new tech. , increase productivity
Stage 3: Takeoff - Rapid growth in economic activities
Some regions are productive, some are dominated by traditional practices
Stage 4: Drive to Maturity - Modern tech. diffuses
Workers more skilled and specialized
Stage 5: Age of Mass Consumption - Production of Heavy industry->Consumer goods
Stage 1:Traditional Society
Rigid institutions, low productivity, little infrastructure, dependence on subsistence agriculture
subsistence is major. Trade by barter. Agriculture is the most important industry. Production is labor intensive and expensive.
Stage 2: Preconditions take off
-in process of transition
-adv of modern science beginning to be applied in agriculture and production
Stage 3: Takeoff
Rapid growth is experienced in few select businesses. These advances "fuel the fire" by providing capital for the other businesses to utilize.
Stage 4: Drive to Maturity
the economy is diversifying into new areas. New technology= new opportunities. The economy is producing a wide range of goods and services and there is less reliance on imports
Stage 5: Age of Mass Consumption
-leads to shifts in leading economic sectors towards durable consumer goods (service industry)
-large amount of discretionary income.
Less developed country
A country that is considered lacking in terms of its economy, infrastructure and industrial base. The population of a lesser-developed country often has a relatively low standard of living, due to low incomes and abundant poverty
More developed country
A highly industrialized country characterized by significant technological development, high per capita income, and low population growth rates.
Gross Domestic Product (GDP)
The total value of goods and services produced within the borders of a country during a specific time period, usually one year.