Unit 7 Terms

Question 1

Small Scale Finance

Answer 1

Finance that deals with small businesses and low income individuals who usually aren’t included in the traditional banking systems

Question 2

Industrialization

Answer 2

The process by which economies transform from primarily agrarian societies to ones based on the manufacturing of good and services

Question 3

Natural Resources

Answer 3

Materials and components that can be found within the environment, which are utilized by humans

Question 4

Class Structures

Answer 4

The hierarchical organization of society based on factors like wealth, power, and social status

Question 5

Raw Materials

Answer 5

Unprocessed substances that are extracted or harvested from the earth

Question 6

Colonialism

Answer 6

The practice where a country establishes control over foreign territories

Question 7

Economic Sectors

Answer 7

Distinct categories of economic activity that classify the various types of production and services in an economy

Question 8

Primary sector

Answer 8

Involves extracting and harvesting natural resources

Question 9

Tertiary sector

Answer 9

Provides services rather than goods

Question 10

Quaternary Sector

Answer 10

Involves knowledge based services (research)

Question 11

Quinary Sector

Answer 11

High level decision making and specialized services

Question 12

Break-of-Bulk Point

Answer 12

A location where goods are transferred from one mode of transportation to another

Question 13

Informal Economy

Answer 13

Economic activities that aren’t regulated by the government

Question 14

Least Cost Theory

Answer 14

An economic principle that explains the optimal location of manufacturing industries based on minimizing transportation, labor, and agglomeration costs

Question 15

Core

Answer 15

Regions/Countries that dominate trade, control, the most advanced tech, and have the highest productivity and wealth

Question 16

Semi-Periphery

Answer 16

Regions that aren’t as economically developed as core nations but are more developed than peripheral countries

Question 17

Periphery

Answer 17

Regions that are often economically and politically disadvantaged compared to the core

Question 18

Gross Domestic Product (GDP)

Answer 18

The total value of all goods and services produced by a country’s economy

Question 19

Gross National Product (GNP)

Answer 19

The total value of all goods and services produced by a country’s economy

Question 20

Gross National Income (GNI)

Answer 20

Total income earned by a nation’s residents and businesses, including any income earned abroad, over a specific period, usually a year

Question 21

Formal Economy

Answer 21

Legal and regulated parts of an economy with established rules, laws, and regulations

Question 22

Income Distribution

Answer 22

How income is divided among different groups or individuals

Question 23

Gender Inequality Index (GII)

Answer 23

A composite measure that reflects inequalities in gender based outcomes across 3 key dimensions: reproductive health, empowerment, and market participation

Question 24

Indices of Empowerment

Answer 24

Measures used to assess the ability of individuals (often women) to make choices and control their lives, particularly in economic and political spheres

Question 25

Labor-Market Participation

Answer 25

The percentage of the working age population that is either employed or actively seeking employment

Question 26

Human Development Index (HDI)

Answer 26

A composite statistic used to measure and rank countries based on their levels of human development

Question 27

Microleans

Answer 27

Small loans given to individuals, especially those in developing countries, who lack access to traditional banking systems

Question 28

Standard of Living

Answer 28

The level of wealth, comfort, material goods, and necessities available to a certain socioeconomic class or geographic area

Question 29

Rostow’s Stages of Economic Growth

Answer 29

1) Traditional Society 2) Preconditions to take off 3) Take off 4) Drive to maturity 5) Age of high mass consumption

Question 30

Wallerstein’s World Shstems Theory

Answer 30

A socioeconomic framework that categorizes countries into core, semi periphery, and periphery based on their economic activities and global power dynamics

Question 31

Dependency Theory

Answer 31

The political and economic relationships between countries and regions of the world control and limit the economic development possibilities of poorer areas

Question 32

Commodity Dependence

Answer 32

The economic condition where a country relies heavily on the export of one or a few primary commodities for its income

Question 33

Complementary Advantage

Answer 33

2 or more countries benefit from trade

Question 34

Comparative Advantage

Answer 34

How countries or individuals can benefit from specializing in the production of goods or services for which they have lower opportunity cost compared to others

Question 35

Free Trade

Answer 35

An economic policy that allows goods and services to be traded across borders with little to no government interference, such as tariffs or quotas

Question 36

World Trade Organization (WTO)

Answer 36

Facilitates international trade by providing a structured framework for negotiating trade agreements and reducing trade barriers

Question 37

Organization of the Petroleum Exporting Countries (OPEC)

Answer 37

An intergovernmental organization founded in 1960, consisting of major oil-exporting countries that coordinate and unify petroleum policies among member countries

Question 38

European Union (EU)

Answer 38

A political and economic union of 27 European countries that have chosen to cooperate closely in various areas, including trade, governance, and social policy

Question 39

Mercosur (Southern Common Market)

Answer 39

A group of South American countries that work together to trade more easily with each other.

Question 40

Tariffs

Answer 40

Taxes imposed by a government on imported goods, which raise the price of these goods in order to protect domestic industries and generate revenue

Question 41

International Monetary Fund (IMF)

Answer 41

A global organization that gives money to countries that are having money problems, to help their economies get better.

Question 42

Economies of Scale

Answer 42

The reduction in the per unit cost of production as the volume of production increases

Question 43

Agglomeration

Answer 43

The clustering of businesses or industries in a specific area, leading to benefits like shared infrastructure, labor pools, and cost reductions due to proximity

Question 44

Service Sectors (Tertiary Sector)

Answer 44

Encompass activities that provide service to people rather than producing goods

Question 45

Growth Poles

Answer 45

A specific area or sector that drives economic development in a region

Question 46

Natural Resource Depletion

Answer 46

The consumption of a resource faster than it can be replenished, leading to a reduction in its availability

Question 47

Mass Consumption

Answer 47

The widespread purchase and consumption of goods and services by a large population

Question 48

Ecotourism

Answer 48

A form of tourism focused on experiencing nature responsibly, aiming to conserve the environment, support local communities and educate visitors about conservation efforts

Question 49

Multiplier Effect

Answer 49

The multiplier effect is when one job or investment creates more jobs or economic activity in an area.

Question 50

Fordism

Answer 50

The industrial production system, pioneered by Henry Ford, characterized by mass production, assembly line, standardized parts, and a focus on efficiency and low costs

Question 51

Post-Fordist Methods of Production

Answer 51

A shift away form Fordism, characterized by mass production, toward more flexible, specialized, and often globalized production systems