Unit #3

Question 1

Facts about the primary industry

Answer 1

• also referred to as “extraction”
• extract or produce raw materials

Question 2

Examples of jobs in the primary industry:

Answer 2

Farmers, miners, fishermen

Question 3

Facts about the secondary industry

Answer 3

• manufacturing and processing
• process/manufacture raw materials into usable products
• increases value of products

Question 4

Examples of jobs in the secondary industry

Answer 4

Clothing shops, food processing factories, engineering

Question 5

Facts about the tertiary industry

Answer 5

• service industry
• provide service

Question 6

Examples of jobs in the tertiary industry

Answer 6

Doctors, nurses, delivery drivers, educators/teachers

Question 7

Facts about the quaternary industry

Answer 7

• creation and transfer or information
• occupations based on knowledge and skills

Question 8

Examples of jobs in the quaternary industry

Answer 8

• software developers, app creators

Question 9

Facts about the quinary industry

Answer 9

• Decision makers
• “big bosses”

Question 10

Examples of jobs in the quinary industry

Answer 10

Bureaucrats, government workers, CEOs of companies

Question 11

What are basic vs non basic industries

Answer 11

Basic industries: do not introduce new money into the area. Thus, money is recycled within the area

Non-basic industries: introduce money from different places of the world, supporting the local economy

Question 12

Examples of jobs in the basic industries

Answer 12

Doctors and nurses, school bus drivers, teachers

Question 13

Examples of jobs in the non-basic industries

Answer 13

Tour buses drivers, grocery stores, clothing stores

Question 14

How can we measure developed and underdeveloped countries?

Answer 14

• GDP per capita
• Standard of living
• Level of industrialization
• amount of technology

Question 15

What is the main idea of the dependency theory?

Answer 15

That the wealth of richer countries is at the expense of the poorer countries.
(wealthycountries depend on the poorer countries)

Question 16

What is the main idea of Rostow’s model of development?

Answer 16

Steps of a country from being underdeveloped to developed:

1. Undeveloped country
2. Projects are made to increase productivity
3. Growth is generated for the economy as there are more economic activities
4. Takeoff of technology and workers become more specialized
5. Developed country

Question 17

What is the main idea of the Lewis Structural Change Model

Answer 17

Development=increase in manufacturing and decrease in agriculture

Focused on moving away from the agricultural economy with surplus labor to an advanced industrial economy through shifting the suprlus labour to the modern sector.

Question 18

Why is specialization important in trade?

Answer 18

Trade between two countries thateach specialize in a certain product allows both countries to enjoy a higher total output and consumption than what would have been possible domestically. The product can also be made better as one country focuses on one product instead of many.

Question 19

What is comparative advantage?

Answer 19

A country with a comparative advantage is a situation in which a country or business can produce a good at a lower opportunity cost than another producer.

Determine the amount of labour one of the countries puts into creating a certain amount of a product compared to the other country.

Question 19

What are the terms of trade?
Think: the terms of the trade

Answer 19

The relative price of exports in terms of imports. Ratio of prices of exports to imports.

Question 19

What is the absolute advantage?

Answer 19

When a producer can provide a good or service in greater quantity for the same cost, or the same quantity at a lower cost, than its competitors.

Question 19

Negative effects of over-specialization:

Answer 19

• exploitation of workers
  By manufacturing with countries with less stringent labour laws, companies can benefit from child labour and coercive employment practices that are not legal in the company’s home countries.
• destruction and/or depletion of a country’s resources

Question 20

Free trade vs fair trade

Answer 20

Free trade entails agreements between countries that allow unrestricted import and export of goods.

Fair trade is a trading paternship whose aim is to seek greater equity in trade through the higher payment to exporters.

Question 21

What is the staple thesis?
Think: “staples”

Answer 21

A thesis supporting the staples in developing Canada’s economy.

Staples:
-cultivation and exportation of raw materials, which led to toher forms of economic development

Question 22

What does NAFTA stand for?

Answer 22

North American Free Trade Agreement

Question 23

What is NAFTA (North American Free Trade Agreement)?

Answer 23

It is what its name is! A free trade zone for Mexico, The United States, and Canada. It eliminates all trade barriers and quotas.

Question 24

What are trade gains?

Answer 24

Trade gains are the benefits to economic agents from being allowed an increase in trading with each other.