Ch. 23

• What is development in economic terms?

  A process increasing real per capita incomes
• How does development benefit the inhabitants of a country?

  It improves living conditions and reduces poverty
• What does the primary sector involve?

  Production using natural resources
• What activities are included in the primary sector?

  Extraction of raw materials and growing crops
• What is the secondary sector focused on?

  Production of manufactured goods
• What does the tertiary sector involve?

  Production of services
• What is the quaternary sector based on?

  Information technology and information products
• What does the Human Development Index (HDI) measure?

  Level of a country’s development
• What is the range of the Human Development Index (HDI)?

  Between 0 and 1
• How is sustainable development defined?

  Meets present needs without compromising future needs
• What is absolute poverty?

  Insufficient income for minimum survival needs
• What does absolute poverty indicate about a household's income?

  It is insufficient to purchase essential goods