IB Economics 4.9 Barriers to Economic Growth and Economic Development Key Definitions

The large-scale and rapid movement of financial assets or capital from a country to foreign markets, often due to economic instability, political uncertainty, or fear of currency depreciation.

Structural challenges that prevent countries from achieving sustainable economic growth and development.

The market value of all final goods and services produced in an economy over a period of time (usually a year), regardless of who owns the factors of production.

Skills, abilities, good health, and knowledge utilized by people to increase their productivity.

Part of the economy that lies outside the formal economy, and involves economic activities that are unregistered and legally unregulated.

The formal and informal rules, laws, and systems that structure economic, political, and social interactions, influencing decision-making, resource allocation, and economic development.

A self-reinforcing cycle where low income leads to limited access to resources, which in turn prevents individuals or communities from improving their economic situation.

The sector of the economy that produces primary commodities, which are goods arising from the factor of production land.

Assigning available resources or factors of production to particular uses selected from various possible options.