Chapter 18 Reading Guide

Question 1

The 5 economic sectors

Answer 1

Primary (farming) secondary (Building) , Tertiary (services), quaternary (analyzing data), quinary (high end decisions)

Question 2

Multiplier effect

Answer 2

potential for a job to produce other jobs (or vice versa)

Question 3

Least cost theory

Answer 3

How companies choose to locate factories to minimize costs (close to transportation, grouping other companies to share costs, minimizing labor costs)

Question 4

bulk reducing industry

Answer 4

when a resource looses bulk after being processed

Question 5

Bulk gaining industry

Answer 5

when a resource gains bulk after being processed

Question 6

Bulk of break point

Answer 6

products need to be shipped by using multiple forms of transportation (higher costs)

Question 7

GNP

Answer 7

Gross National Product: The dollar amount of all goods and services produced by citizens of a country per year (production focused)

Question 8

GDP

Answer 8

Gross Domestic Product: The $ amount of all goods and services produced in a country in one year

Question 9

GNI

Answer 9

Gross National Income: The Dollar amount produced by a country’s citizens and businesses in a year (Income focused)

Question 10

Formal economy

Answer 10

economy that is moderated by the government

Question 11

Informal economy

Answer 11

economy that is not moderated by the government

Question 12

Income distribution

Answer 12

How a country’s total earnings are divided among the population

Question 13

GII

Answer 13

Gender Inequality Index: Measures the Inequality of Men vs women in a county

Question 14

HDI

Answer 14

Human Development Index: measures human development. Higher=more developed

Question 15

Microloans

Answer 15

Small loans provided to people to improve their standards of living