1. Development

2. Agglomeration economies
• The term economies of agglomeration is
used in urban economics to describe the
benefits that firms obtain when locating
near each other ('agglomerating'). This
concept relates to the idea of economies
of scale and network effects.

3. Human Development Index(HDI)
• An indicator of the level of development
for each country constructed by the united
nations, combining income, literacy,
education, and life expectancy.

4. Primary Sector
• The sector of an economy making direct
use of natural resources
• Sectors that produce or obtain raw
materials or natural products
• Industries engaged in extraction of
natural resources

5. Quaternary sector
• The portion of an economy that is based
of knowledge applicable to some business
activity that usually involves the provision
of services.

6. Neocolonialism
 The major world powers control the
economies of the poorer countries,
even though the poorer countries are
now politically independent states.

7. Productivity
• The value of a particular product
compared to the amount of labor needed
to make it.

8. Value Added
• Difference between the total sales
revenue of an industry and the total cost
of components, materials, and services.

9. HDI
• Human Development Index
• Created by the United Nations, and
recognizes that a country’s development
level is a function of all three factors
(economic, social, and demographic.)

10. MDC
• More developed country
• A country that has progressed relatively
far along a continuum of development

11. Trickle-down Theory
• An economic theory of monetary benefits
directed by the government to big
businesses that will in turn, pass down to
and profit, smaller businesses and the
general public.
• On a world scale, the same theory can be
applied from MDC to LDC. Technology,
jobs, medicines, are examples

12. Comparative Advantage
• The principle that an area produces the
items for which it has the greatest ratio of
disadvantage in comparison to other
areas, assuming free trade exists.

13. Tertiary Sector
• The portion of the economy concerned
with transportation, communication, and
utilities, sometimes extended to the
provision of all goods and services to
people in change for payment. I bet coach
Woerner can’t tell what color this is!!!
HAHAHA he is bald!!!!!

14. SUSTAINABLE
DEVELOPMENT
• The level of development that can be
maintained in a country without depleting
resources to the extent that future
generations will be unable to achieve a
comparable level of development.

15. Economic indicator
• Any economic statistic such as
unemployment rate GDP or the inflation
rate

16. Basic Industries
• Industries that sell their products or
services primarily to consumers outside
the settlement
• Ex. Agriculture, Chemicals, Steel, Metal,
Manufacturing, etc.

17. Non-Basic Industries
• Industries that sell their products primarily
to consumers in their community; small
businesses that sell to local customers
• Ex. Diners, service companies,
Convenience stores, drug dealers, etc.

18. Comparative Advantage
• Concept in economics that a country
should specialize in producing and
exporting only those goods and services
which it can produce more efficiently than
other goods and services

19. Gross National Product
• Total market value of all goods and
services produced by a nation during a
specific period.
• John Mark Friend

20. LDC
• Less Developed Country classified by per
capita income, literacy rates, T.V.s per
capita, and hospital beds per capita.
• Ex: Middle East, South Asia, East Asia,
Latin America, Southeast Asia, and
Central Asia.

21. Brandt Line
• Line that divides the MDCs and the LDCs

22. Economic Development
• Sustained, concentrated actions of policy
makers and communities that promote the
standard of living and economic health of
a specific area

23. Productivity
• The value of a particular product
compared to the amount of labor needed
to make it.

24. Market orientation
• Tendency of an economic activity to locate
close to its market; reflection of large and
variable distribution costs.

25. Raw Material Orientation
• The tendency of an economic activity to
locate near its raw material source.

26. Regional multiplier
• Economic growth caused by economic
growth.
• EX: The discovery o steel leads to a steel
manufacturing business.

27. Quaternary Sector
• Part of the economy. Consists of
intellectual activities like government,
culture, libraries, and scientific research.
• - Jordan

28. Primary Sector
• The portion of the economy concerned
with the direct extraction of materials from
Earth’s surface, generally through
agriculture, although sometimes through
mining, fishing, and forestry.

29. Subsistent Economy
An economy which refers simply to the
gathering or amassment of object value,
the increase in wealth, or creation of
wealth; focus on a ‘natural’ way of living.

30. Literacy Rate
• The percentage of a country’s people who
can read and write
• Literacy rate is usually higher in MDC’s
usually in 90%
• Affects the health, population, life
expectancy, infant mortality rate, natural
increase rate, and crude birth rate.
• All these affect the development

31. Import Substitution
A government strategy that replaces
some imports to encourage local
production of those products to
generate employment.

32. Secondary Sector
The portion of the economy
concerned with manufacturing
useful products through
processing, transforming, and
assembling raw materials.

33. Economic Indicators
• A piece of economic data of macroeconomic
scale, that is used by investors to interpret
current or future investments possibilities and
judge the overall health of an economy.
Economic indicators can potentially be anything
the investor chooses, but specific pieces of
data released by government and non-profit
organizations have become widely followed.
• Ex: unemployment, consumer price index,
bankruptcies, price of crude oil

34. Brandt Line
• A line depicting the North-South divide
between the developed countries and the
less developed countries. Created by
West Germany Chancellor Willy Brandt in
1980.

35. Market-Orientation
• The tendency of an economic activity to
locate close to its market; a reflection of
large and variable distribution costs

36. Neocolonialism
• A disparaging reference to economic and
political policies by which major developed
countries are seen to retain or extend
influence over the economies of LDC’s
and peoples
• Control by a powerful country of its former
colonies (or other LDC’s) by economic
pressures

37. Import Substitution
• The process by which domestic producers
provide goods or services that formerly
were bought from foreign producers.

38. Developing Country
• A country that has made some progress
and expects to continue improving the
material conditions of people, through
knowledge and technology

39. Literacy Rate
• The percentage of a country's people who
can read and write.
• Exceeds 98% in MDCs in contrast with
less than 60% in LDCs.

40. Less Developed Country
• A country relatively early stage in the
process of economic development.

41. DEPENDENCY THEORY
• 1. IS A BODY OF SOCIAL SCIENCE
THEORIES PREDICATED ON THE
NOTION THAT RESOURCES FLOW
FROM A “PERIPHARY” OF POOR AND
UNDERDEVELOPED STATES TO A
“CORE” OF WEALTHY STATES,
ENRICHING THE LATTER AT THE
EXPENSE OF THE FORMER.

42. Developing Country
• A more politically correct term used in
place of LDC or third world country.

43. Rostow’s Modernization Model
• A five stage model of development developed by W.W.
Rostow.
• Traditional society- Not yet started development
• The preconditions for take off- starts to invest in new
technologies.
• The take off- Rapid growth, and areas of the economy
start to be productive
• The drive to maturity- Workers become skilled and
specialized,