Terms

Question 1

Formal employment sector

Answer 1

Sector which encompasses all jobs with normal hours and regular wages.

Question 2

Informal employment sector

Answer 2

The part of economy that is neither taxed nor monitored by the government. The opposite of the formal employment sector.

Question 3

Subsistence farming

Answer 3

When farmers focus on growing enough food to feed themselves and their families.

Question 4

Extensive farming

Answer 4

Is an agricultural production system that uses small inputs of labour, fertilisers and capital, relative to the and area being farmed.

Question 5

Optimum location

Answer 5

The most desirable location.

Question 6

Back offices

Answer 6

Administration and support personnel in a financial service company. They carry out functions like settlements and clearance.

Question 7

Human development index (HDI)

Answer 7

A2 developed by the United Nations to measure and rank countries levels of social and economic development based on four criteria: life expectancy at birth mean years of schooling, expected years of schooling and gross national income per capita

Question 8

LEDC

Answer 8

Less economically developed country

Question 9

MEDC

Answer 9

More economically developed country

Question 10

GNI or GNP

Answer 10

Gross National Income or Gross National Product

Question 11

Imports

Answer 11

Goods brought from abroad

Question 12

Exports

Answer 12

Goods sold abroad

Question 13

Industrialisation

Answer 13

The process in which a society or country transforms itself form a primarily agricultural society into one based on the manufactory of goods and services.

Question 14

Adult literacy

Answer 14

The number of adults who are literate,able to read and write.

Question 15

Infant mortality

Answer 15

The death of a child Less than one years of age.

Question 16

Trade

Answer 16

The action of buying or selling goods and services.

Question 17

Aid

Answer 17

Help or support in achievement of sanctuary

Question 18

Trade surplus

Answer 18

A trade surplus means that the value of exports is greater than imports

Question 19

Trade deflict

Answer 19

When there are more imports than exports

Question 20

Primary industry

Answer 20

And industry involved in the extraction and collection of natural resources such as copper and timber. This includes activities such as farming and fishing. A company in a primary industry can also be involved in turning natural resources into products

Question 21

Secondary industry

Answer 21

The industrial sector of an economy that is dominated by the manufacture of finished products. A secondary industry makes products that are more likely to be consumed by individuals.

Question 22

Quaternary industry

Answer 22

Consists of those industries providing information services such as computering, ICT( information and communication technologies) consulting and R&D

Question 23

Inputs

Answer 23

Raw materials go in

Question 24

Processes

Answer 24

The materials are worked upon and changed

Question 25

Outputs

Answer 25

Manufactured goods come out

Question 26

Multiplier effect

Answer 26

If more jobs are created people who take them have money to spend in the shops. This means that more shopworkers are needed. The shopworkers pay their taxes and spend manufacturing money creating yet more jobs in industries such as drivers, transport and education.

Question 27

Trans national companies (TNCs) also see MNCs

Answer 27

Large companies which have branch plants throughout the world their headquarters are often found in MEDCs

Question 28

Newly industrialised countries (NICs)

Answer 28

LEDC which are developing manufacturing industry is usually with the help of transnational companies attracted by cheap labour and Government incentives e.g. South Korea and Hong Kong

Question 29

Raw materials

Answer 29

Basic substances in its natural model of modified or semiprocessed state used as an input to the production process for subsequent modification or transformation into a finished good

Question 30

Sustainable industries

Answer 30

A sustainable industry is one which can last over time by anticipating economic,social and environmental changes or trends

Question 31

Multi national companies (MNCs)

Answer 31

A company which has headquarters in one country that has manufacturing factories in another

Question 32

Globalisation

Answer 32

The process by which businesses or other organisations develop international me they develop international influence or start operating on an international scale.

Question 33

Quality of life

Answer 33

Standard of health, comfort and happiness of person

Question 34

Sustainable development

Answer 34

Development that meets the needs that are present without compromising development and future

Question 35

Purchasing power parity (PPP)

Answer 35

And economic Theory that estimates the amount of adjustment needed on the exchange rate between countries in order for the exchange to be equivalent to each currency in purchasing power.

Question 36

Appropriate technology

Answer 36

Small scale technology

Question 37

GDP

Answer 37

Gross domestic product | The total value of goods and services a country produces in a year. Often given in dollars

Question 38

GDP per capita

Answer 38

GDP dived by the total population

Question 39

PQLI (physical quality of life index)

Answer 39

This is a number that's calculated using the life expectancy, literacy rate and infant mortality rate.

Question 40

How is the HDI (human development index) calculated?

Answer 40

A number that's calculated using life expectancy, literacy rate, education level (e.g degree) and income per capita

Question 41

What are the disadvantages of economic development indicators?

Answer 41

Can be: Inaccurate for countries Witt informal trade (no tax) Also affected by exchange rate changes (often given in $)

Question 42

What are the disadvantages and advantages of social development indicators?

Answer 42

Can be: Difficult to measure but give better indication of quality of life. No indicators for social factors such as human rights! Measures can be misleading because they are averages don't show the variations in the country. Using more than measure or HDI or PDLI which combine many measure and avoids this problem.