Chapter 3 week 1 Flashcards
What is the Quinary economic activity level?
“Gold Collar” Jobs
highly paid professionals/CEOs
research scientists
high ranking government officials
What is the Quaternary economic activity level?
Information-Based Services
accountants/tax managers
software development
research and development
media
information/communication technology
What is the Tertiary economic activity level?
Services
trade, education, healthcare, transportation, personal banking
What is the Secondary economic activity level?
Production of Goods
construction, industry, manufacturing
What is the Primary economic activity level?
Basic Production
farming, ranching, fishing, mining, forestry
Describe factors of production: Land
Not just the “land”; includes all resources: water, minerals, plants, animal, etc.
Describe factors of production: Labor
Physical and mental abilities of workers
Describe factors of production: Capital
More than money; Anything used to create wealth: Ex. a computer used to create an app
Describe factors of production: Entrepreneurship
The ability of an individual to take a risk and begin a new business
What is Core?
Industrialized/capita list countries that the rest of the world depend upon; control and benefit from the global market
What is Periphery?
Depend on core nations for finished products/services
What is Fordism?
Mass production of a product @ a single site
assembly line
less skilled workers
What is Post Fordism?
Mass production of a product
outsourcing
flexibility in production and innovation
teams-based
production occurs world-wide
What is Free Market economic system?
Individuals freely produce and buy what they want
Prices set by supply and demand
Goal of business is to make a profit
Little government interference
What is Command economic system?
Government makes all economic decisions
No private property or enterprise
Profits/costs are intended to be shared equally
What is Socialist economic system?
Government owns some basic industries
Private owners of industries with heavy government regulation
Tax funded public services
What is Traditional economic system?
Work to meet your own basic needs
Substance agriculture - growing only enough to feed family
Cottage industries - goods produced on private property by hand
Gross Domestic Product advantages
Used by all countries
Easy to use/measure
Gross Domestic Product disadvantages
Doesn’t include all products
Fails to show actual distribution of wealth
Doesn’t show sustainability of economic situation
Doesn’t show human factors
Human Development Index advantages
Takes all aspects into account: economic and social
Indicator of quality of life for citizens with in a country
Human Development Index disadvantages
Not truely effective at showing wealth dictribution
Doesn’t consider poverty, rights, war, social conflict, or political issue
Only reflects long-term changes, not usually applicable to short-term issues/concerns
What is economic globalization?
refers to the strentching of economic connections across the globe
Gigantic flows of capital mediated by digital technology and standaedized means of transportation have stimulated trade in goods and services by leaps and bounds
What is global economies?
Have extended their reach to cyberspace and integrated local, national, and international economics
What is the Bretton woods regime?
1.the international monetary fund
2.the international bank for reconstruction and development
3.the general agreement on tariffs and trade
