Economic Disparity Flashcards
(20 cards)
What are the three economic sectors?
- Primary: collection/extraction of raw materials (e.g., farmer, fisher)
- Secondary: turning raw materials into products (e.g., paper, steel)
- Tertiary: services to improve quality of life (e.g., doctor, lawyer, hairdresser)
These sectors describe the different stages of economic activity.
What does economic structure describe?
A country’s economy in terms of how much wealth is generated by each sector
Economic structure is essential for understanding the distribution of resources within a country.
Define economic disparities.
Inequality in which some people or countries are much better off economically than others
Economic disparities can be exacerbated by globalization.
What is poverty?
Minimum level of income deemed adequate in a particular country
Poverty is a relative term that depends on the cost of living and wealth in the country being discussed.
What is GDP per capita?
Economic indicator that takes the total value of all goods and services produced by a country (GDP) and divides it by the population
GDP per capita is often used to assess the economic performance of a country on a per-person basis.
What does the Gini index measure?
How equally wealth is distributed within a country
A Gini index of 0 represents perfect equality, while an index of 100 indicates perfect inequality.
What is income disparity?
Differences in income that occur between groups in society
Income disparity can lead to various social issues and affects overall economic stability.
Fill in the blank: The primary economic sector involves _______.
[collection/extraction of raw materials]
This sector includes activities such as farming and fishing.
True or False: The tertiary economic sector is focused on manufacturing goods.
False
The tertiary sector is focused on providing services, not manufacturing.
What is social mobility?
The degree to which a person can move between socio-economic groups or is likely to have the same socio-economic status as their parents.
List some causes of income disparity.
- Impact of colonialism
- Lack of manufacturing industries
- Lack of investment
- Population growth
- Infectious diseases
- Foreign debt
- War
- Leadership issues
- Trade inequalities
- Lack of local control
What is extreme poverty?
When people have to live on less than 1 US$ a day.
Define wealth.
Money and possessions accumulated by a person in their lifetime.
What factors contribute to local disparity?
- Education
- Technology
- Gender gap
- Racial wage gap
- Ability
- Socio-economic status
True or False: Higher parental wealth can lead to better education.
True
Fill in the blank: People with ______ education tend to have higher incomes on average.
[secondary]
Fill in the blank: Women earn less than _____ on average.
[men]
What is the racial wage gap?
The phenomenon where people of visible minorities earn less on average.
How does ability relate to income?
Higher determination and hard work can lead to higher income, with no connection between IQ and income.
What impact does technology have on unskilled workers?
Unskilled workers can be replaced by technology.
