Unit 7 Vocab

Question 1

Primary Sector

Answer 1

• Take resources from Earth
• Controlled economy until 1800s
• Required physical skill
• Not many high-paying jobs
  Farming, Mining

Question 2

Agglomeration Economies

Answer 2

grouping of multiple businesses in order to share
costs

Question 3

Gini Index (Coefficient)

Answer 3

measures the extent to which the distribution of income or consumption among individuals or households within an economy deviates from a perfectly equal distribution

Question 4

Quinary Sector

Answer 4

• High-level decisions that impact millions of people
• High income
  Research, Government, Corporations

Question 5

Rostow’s Stages of Economic Growth

Answer 5

the economies of all countries could be placed within one of five different stages of economic growth. The stages include traditional society, preconditions to takeoff, takeoff, drive to maturity, and age of high mass consumption

Question 6

Human Development Index

Answer 6

an indicator of the level of development for each country counstructed by the UN that is based on income, literacy, education, and life expectancy

Question 7

World System’s Theory Model

Answer 7

claims that rich core capitalist societies succeed by exploiting poorer peripheral ones

Question 8

Gross National Income

Answer 8

The value of the output of goods and services produced in a country in a year including money that leaves and enters the country

Question 9

Quaternary Sector

Answer 9

• Managing and processing information
• Higher education required
• Higher pay/wages
  Data, Software, Finance

Question 10

Secondary Sector

Answer 10

• Making goods and products with raw materials
• Large growth between 1840-1960
  Manufacturing

Question 11

Gross Domestic Product

Answer 11

The value of the total output of goods and services produced in a country in a time period

Question 12

Gender inequality Index

Answer 12

a measure of the extent of each countries gender inequality

Question 13

Industrial Revolution

Answer 13

Began in 18th Century (1700-1800), Development of machines that ran on steam or water that made products
faster
* Required:
o Larger investments
o Larger work space
o Larger scale of production
o Larger market (expanded to global)

Question 14

Informal Sector

Answer 14

the part of any economy that is neither taxed nor monitored by any form of government

Question 15

Complementarity

Answer 15

when a country has the income, goods or services that another country wants

Question 16

Offshoring

Answer 16

the practice of basing some of a company’s processes or services overseas, so as to take advantage of lower costs.

Question 17

Formal Sector

Answer 17

jobs that the government regulates and offers benefits such as social security, health insurance, and retirement plans

Question 18

Dependency Model

Answer 18

the idea that resources flow from a “periphery” of poor and exploited states to a “core” of wealthy states

Question 19

Comparative Advantage

Answer 19

the ability of an individual or group to carry out a particular economic activity more efficiently than another activity.

Question 20

Purchasing Power Parity

Answer 20

compares prices of goods from different countries to measure economic stability

Question 21

Transnational Corperation

Answer 21

a company that conducts research, operates factories, and sells products in many contries.

Question 22

Outsourcing

Answer 22

a decision by a corperation to turn over much of the responsibility for production to independant suppliers

Question 23

Gross National Product

Answer 23

the total value of goods produced and services provided by a country during one year, equal to the gross domestic product plus the net income from foreign investments.

Question 24

Cottage Industries

Answer 24

home businesses that hand-crafted goods

Question 25

Least Cost Theory Model

Answer 25

• Factory owners build factories where
  they can keep total costs low through
  these factors:
  o Limit transportation costs
  o Limit labor costs
  o Use agglomeration economics

Question 26

Tertiary Sector

Answer 26

• Provides services to consumers
• Most of today’s work force
• Wages vary
  Retail, Medicine

Question 27

Per Capita

Answer 27

Per Person

Question 28

Multiplier effect

Answer 28

• Production of Jobs: New Workers=More money=Spend Money=Expansion of other businesses
• Reduction of Jobs:
  Less workers=Decrease in income=Saving money=Other businesses lose customers