Unit 7: Economics

Question 1

Development

Answer 1

the changes that occur as a country transitions from an agricultural economy to industry-based economy with rising living standards

Question 2

Industrialization

Answer 2

the process by which an economy is transformed from primarily agricultural to one based on the manufacturing of good

Question 3

Standard of living

Answer 3

level of wealth available to a person or community
Also their access to healthcare, education, work, leisure time

Question 4

break-of-bulk point

Answer 4

a place where cargo is unloaded from one form of transportation and pieces of it are sent out in different directions to other forms

Question 5

bulk-gaining industry

Answer 5

Industry that makes something that gains volume or weight during production
ex. water bottles

Question 6

bulk-reducing industry

Answer 6

industry that makes something that loses volume or weight during production
ex. meat

Question 7

Labor union

Answer 7

an organization of workers that aims to protect their rights and further their interests
Many places in the periphery do not have labor unions, making them more attractive to multinational corporations

Question 8

Least cost theory

Answer 8

Alfred Weber’s theory that tries to explain and predict the locational pattern of industry
States that factory locations will be where transportation costs the least based on transportation costs, labor, and agglomeration

Question 9

Primary Sector

Answer 9

activities that are extractive // taking something from the earth
ex. agriculture, fishing

Question 10

Secondary Sector

Answer 10

process the item or manufacture something from it
ex. automobiles

Question 11

Tertiary Sector

Answer 11

revolves around the idea of providing a service
ex. retail, restaurants

Question 12

Quaternary Sector

Answer 12

activities involve processing information
ex. finance, libraries, data tech

Question 13

Quinary Sector

Answer 13

characterized by decision makers
ex. executives, president

Question 14

core

Answer 14

in World’s Systems Analysis, the core are the powerful, wealthy countries that have great influence on the world economy

Question 15

Periphery

Answer 15

in World’s Systems Analysis, the periphy are the least economically developed countries that have little influence over the world’s economy

Question 16

Semiperiphery

Answer 16

in World’s Systems Analysis, the semi-periphery is the more-wealthy LDCs that have some influence on world economies

Question 17

Formal economy

Answer 17

economic activities that take place inside the official, legal framework, pay taxes and are monitored by the government

Question 18

Gender Inequality Index (GII)

Answer 18

a statistic created by the United Nations to measure how much development is lost because of inequalities between men and women

Question 19

Gross Domestic Product (GDP)

Answer 19

a monetary measurement of all the goods and services produced in a year inside of a country

Question 20

Gross National Income (GNI)

Answer 20

a monetary measurement of all the goods and services produced by citizens (including citizens overseas) in a year in a country but NOT non-citizen residents

Question 21

Gross National Product (GNP)

Answer 21

a monetary measurement of all the goods and services produced by residents of a country (NOT citizens in other countries)

Question 22

Human Development Index (HDI)

Answer 22

a statistic created by the United Nations to try to measure how economically developed a country is - seen as more complete picture than just GDP PPP per capita
Access to education, IMR, TFR, standard of living, life expectancy

Question 23

Informal economy

Answer 23

economic activities that are neither taxed, nor monitored by any form of government including illegal activities

Question 24

Microloans

Answer 24

a small sum of money lent at low interest to a new business
Used mostly for businesses owned by women to give them greater opportunities and increase development

Question 25

Rostow's Stages of Economic Growth

Answer 25

Traditional Society, Preconditions for Takeoff, Takeoff, Drive to Maturity, High Mass Consumption Describes the transition of a country from pre-industrial to post-industrial A country must go through all of the stages

Question 26

Wallerstein World Systems Theory

Answer 26

based on the belief that the world's countries are interdependent Core countries exploit the periphery

Question 27

Dependency theory

Answer 27

the idea that the core has become wealthy at the expense of the periphery Core exploits periphery for natural resources, making periphery dependent on the core for aid and trade

Question 28

Commodity dependence

Answer 28

when a country's economy is reliant on a single product

Question 29

Deindustrialization

Answer 29

decline in industrial activity in a region or economy often due to lower labor costs elsewhere The deindustrialized nation moves to the tertiary sector

Question 30

Comparative advantage

Answer 30

the ability of a group to carry out an economic activity more effieciently than another economic activity

Question 31

Complementarity

Answer 31

when two regions, through trade, can specifically satisfy each other's demands

Question 32

Free trade agreement

Answer 32

a treaty between countries that eliminates tarriffs on goods sent between the countries

Question 33

International Monetary Fund (IMF)

Answer 33

an supranational organization that aims to promote global economic stability and helping the periphery grow

Question 34

Neoliberal policies

Answer 34

when countries institute economic rules that promote sustained economic growth as the means to achieve human progress and confidence in free markets

Question 35

Tariff

Answer 35

a tax a country puts on goods that were created in an outside country encouraging people to buy locally produced goods

Question 36

World Trade Organization (WTO)

Answer 36

an economic supranational organization that deals with trade rules between countries and settling trade disputes

Question 37

Agglomeration

Answer 37

the benefits that companies experience due to being clumped closely together

Question 38

Export processing zone

Answer 38

regions in LDCs that offer tax breaks to attract export-driven production processes like factories producing goods for foreign markets

Question 39

Foreign direct investment (FDI)

Answer 39

a company or individual from one country spending money in business interests in another country, in the form of either establishing business operations or acquiring assets

Question 40

Fordist production

Answer 40

form of mass production in which each worker is assigned one specific task to perform repeatedly.

Question 41

Free trade zone

Answer 41

regions in LDCs where tariffs are waived by governments wanting to encourage MNCs to invest in their countries

Question 42

Growth Pole

Answer 42

an innovative, high-tech industry that stimulates economic growth in linked businesses ex. Silicon Valley

Question 43

International division of labor

Answer 43

a shift in manufacturing away from the advanced economies where most multi-national corporations are owned to developing countries as different parts of items are made all over the world

Question 44

Just-in-time delivery

Answer 44

a strategy for maintaining just the right amount of inventory so as to not have to pay for storage

Question 45

Multiplier Effects

Answer 45

an increase in spending produces an increase in national income and consumption greater than the initial amount spent ex. a corporation deciding to establish in a new location will create other economic benefits --> coffee shops and lunch places may begin to open to accommodate the new business

Question 46

outsourcing

Answer 46

transferring part of a company's operations to an outside company or in another place

Question 47

Post-Fordist production

Answer 47

Adoption by companies of flexible work rules, such as the allocation of workers to teams that perform a variety of tasks Also implementation of technology to automate production

Question 48

Special economic zone

Answer 48

an area that has different laws governing trade and business than the rest of the country and aim to attract FDI

Question 49

Ecotourism

Answer 49

tourism directed toward natural environments (often threatened) intended to support conservation efforts

Question 50

Sustainable development

Answer 50

economic development that is conducted without depletion of natural resources at rapid rates