Ch 9- Development

Question 0

LDC

Less developed country

Answer 0

A country that is at a relatively early stage in the process of economic development

Question 1

HDI

(human development index)

Answer 1

Indicator of level of development for each country, constructed by the UN combining income, literacy rate, education, and life expectancy

Question 2

Literacy Rate

Answer 2

The percentage of people in a country who can read and write

Question 3

MDC

More developed country

Answer 3

A country that has progressed relatively far along a continuum of development

Question 4

Primary sector

Answer 4

The portion if the economy concerned with the direct extraction of minerals from the earths surface,generally through agriculture,mining,fishing, and foresting.

Question 5

Prductivity

Answer 5

The value of a particular product compared to the amount of labor needed to make it

Question 6

Secondary sector

Answer 6

The portion of the economy concerned with manufacturing useful products through processing, transforming and assembling raw materials

Question 7

Tertiary sector

Answer 7

The portion of the economy concerned with transportation, communications, and utilities sometimes extended to the provision of all goods and services to people in exchange for money

Question 8

Value added

Answer 8

The gross value of the product minus the cost if raw materials and energy

Question 9

Agglomeration economics

Answer 9

Economy in which the like things are put together to benefit all businesses

Question 10

Basic (non-basic) economics

Answer 10

Industries that sell their products primarily to consumers outside the settlement (inside the community)

Question 11

Brandt line

Answer 11

A line which divides the developed north with the less developed south

Question 12

Comparative advantage

Answer 12

The ability to produce a good at a lower opportunity cost that other producer

Question 13

Dependency theory

Answer 13

As developing countries make economic advancement, they’re dependent on the core countries intertwined with the global economy; most will never achieve first world status. The MDCs exploit local workers to maximize profits and developing countries are serving as a cheap labor pool

Question 14

Economic indicators

Answer 14

A piece of economic data, usually of macroeconomic scale, that’s used by investors to interpret current or future investment possibilities and judge overall health of economy

Question 15

Gross national product

Answer 15

Total monetary value of all final goods and services produced in a country over the course of a year

Question 16

Import substitution

Answer 16

A government policy which uses trade restrictions and subsides to encourage domestic production of manufactured goods

Question 17

Market-orientation

Answer 17

Tendency of an economic activity to locate close to it’s market; a reflection of large and variable distribution cost

Question 18

Neo-colonialism

Answer 18

Control by a powerful country of it’s former colonies (pr other LDCs) by economic pressure

Question 19

Quaternary sector

Answer 19

The portion of the economy which includes jobs that focus on business services like trade, insurance, banking, advertising, and wholesaling

Question 20

Raw material orientation

Answer 20

Location of a manufacturing plant in relation to sources of raw material

Question 21

Regional multiplier

Answer 21

Stimulation of economic growth by growth itself. As secondary industries develop, they create a demand for raw material and goods. This machinery is made from steel and this stimulates steel manufacturing while development of Stella industry requires more machinery. More jobs arise in service industries.

Question 22

Rostow’s modernization model

Answer 22

Five stages of development in which LDCs usually move up the “ladder”

Question 23

Sustainable development

Answer 23

Level of development that can be maintained in a country with depleting resources to the extent that future generations will be unable to achieve a comparable level of development

Question 24

Subsistence economy

Answer 24

A type of economy in which human groups live off the land with little or no surplus

Question 25

Trickle- down effect

Answer 25

An economy theory which states that investing money in companies and giving them tax breaks is the best way to stimulate the economy