The use of an uneconomical combination of resources to produce goods and
services that are not intensely desired
relative to their opportunity cost.
The number of children (under a specific age- 14, for example) and the
number of the elderly (age 65 and over) living in a country,
divided by the total population. An increasing ratio indicates
that a larger burden is being placed on the productive-age work
force.
Method that uses the foreign exchange rate value of a nation's currency
to convert that nation's GNP to another monetary unit, such as
the U.S. dollar.
An expansion in the total output of goods and services, regardless of
whether or not output per capita increases.
The provision of a legal, monetary, educational, transportation, and
communication structure necessary for the efficient operation of
an exchange economy.
The successful introduction and adoption or a new product or process; the
economic application of inventions.
The discovery of new product or process, often facilitated by the
knowledge of engineering and scientific relationships.
An increase in output per person. When intensive economic growth is
present, output is growing more rapidly than population.
Low income countries characterized by rapid population growth, an
agriculture-household sector that dominates the economy,
illiteracy, extreme poverty, and a high degree of inequality.
Method for determining the relative
purchasing power of different currencies by comparing the
amount of each currency required to purchase a typical bundle of
goods and services in domestic markets. This information is then
used to convert the GNP of each nation to a common monetary
unit.
The introduction of new techniques or methods of production that enable a
greater output per unit of input.
The theory that intensive economic growth will eventually lead to an improvement in the standard of living
of the entire society, even for persons at the bottom of the
economic spectrum.
A pattern of low income and low
economic growth, which tends to perpetuate itself. Since the
current consumption
demands of poor nations are large in " proportion to
available income, the savings and investment rates of these
nations are low. In turn, the low investment rate retards
future growth, causing poor nations to remain poor.
