Economic Activity And Energy

Question 1

What does cycle of poverty mean

Answer 1

A self-perpetuating pattern of poverty and deprivation that passes from one generation to the next; it’s perpetuated by poor educational opportunities and low income

Question 2

What is de-industrialisation

Answer 2

The process whereby the importance of manufacturing in the economy declines

Question 3

What is disposable income

Answer 3

Income that is left after taxes and social security charges have been deducted; income that can be spent or saved as a household or person wishes

Question 4

What is an economic sector

Answer 4

A major division of the economy based on the type of economic activity - the economies of all countries are made up of three sectors; most HICs have a fourth sector

Question 5

What is globalisation

Answer 5

A primarily economic process, increasing the integration of national markets for goods and services into a single global economy or market

Question 6

What is global shift

Answer 6

The movement of manufacturing from HICs to cheaper production locations in LICs

Question 7

What is the high-tech industry

Answer 7

Economic activities that rely on advanced scientific research and produce new, innovative and technologically advanced products, such as microchips, new medical drugs and new materials

Question 8

What is industrialisation

Answer 8

The process by which an economy is changed from a primarily agricultural one to one based on the manufacturing of goods

Question 9

What is informal employment

Answer 9

Types of work that are not officially recognised and are taken up by people working for themselves on the streets of LIC cities e.g. shoe shining, selling stuff on the street

Question 10

What is outsourcing

Answer 10

A practice used by some companies to obtain goods or services by contract from an outside supplier, rather than providing those goods or services themselves

Question 11

What is overpopulation

Answer 11

When the population of an area cannot be adequately supported by available resources

Question 12

What is the primary sector

Answer 12

Economic activities concerned with the working of natural resources - agriculture, fishing, mining and quarrying

Question 13

What is a production chain

Answer 13

A sequence of stages in which companies exploit resources, transform them into goods and distribute them to consumers; it’s a pathway along which goods travel from producers to consumers

Question 14

What is the quaternary sector

Answer 14

Economic activities that provide highly skilled services such as collecting and processing information, research and development

Question 15

What is the secondary sector

Answer 15

Economic activities concerned with making things such as cars, buildings and electricity

Question 16

What is a sector shift

Answer 16

A change in the relative importance of an economy’s sectors

Question 17

What is a tertiary sector

Answer 17

Activities that provide a wide range of services and enable goods to be traded

Question 18

What is a Transnational Company (TNC)

Answer 18

A large company operating in several countries and often involved in a variety of economic activities

Question 19

What is underemployment

Answer 19

A situation in which a person seeking full-time employment can only find part-time jobs

Question 20

What is the classification of employment of the primary economic sector

Answer 20

Working with natural resources; for example, agriculture, fishing, mining and quarrying

Question 21

What is the classification of employment of the secondary economic sector

Answer 21

Processing things such as food or minerals, making things by manufacturing, assembling or building

Question 22

What is the classification of employment of the tertiary economic sector

Answer 22

Providing services; this includes services that are commercial, professional, social, entertainment and personal; public and private transport is also included in this sector

Question 23

What is the classification of employment of the quaternary economic sector

Answer 23

Concerned with information and communications (ICTs) and research and development (R&D); universities are an important part of this sector

Question 24

What are the two ways of measuring the importance of each sector for an economy

Answer 24

1. Percentage of total workforce employed in the sector
2. Contribution to overall economic output - percentage of GDP or GNI

Question 25

How are product chains connected to different economic sectors

Answer 25

- The creation of most products has multiple steps which will require input from all of the key sectors - The steps can include extraction, processing, manufacturing, distribution/transportation, packaging, sales until the endpoint when it’s with the consumer

Question 26

How does the primary sector change over time in the Clark-Fisher model

Answer 26

- Pre-industrial = labour intensive sector - Mechanisation in the industrial period reduced the need for labour (especially on farms) - The decline in primary sector has continued post-industrialisation, especially with increasing food imports and further advancements in technology

Question 28

How does the secondary sector change over time in the Clark-Fisher model

Answer 28

- People forced out of the primary sector found jobs in the increasing secondary sector - The peak was during the industrial period where manufacturing was at its height - Steady decline of people working in manufacturing during post-industrial period due to technological improvements - Many secondary jobs are moving abroad due to cheaper labour

Question 29

How does the tertiary sector change over time in the Clark-Fisher model

Answer 29

- Steadily increasing since the pre-industrial period - More and more people required to sell the increasing number of goods produced by the secondary sector - Recent fluctuations due to technological improvements but also customer care is desired

Question 30

How does the quaternary sector change over time in the Clark-Fisher model

Answer 30

- Growth only begins to occur in the post-industrial societies - High levels of technology and skill involved which require significant investment (public and private funding) - Growth in this sector can further decline the employment in other sectors due to rapid technological improvements - E.g. Cambridge Science and Research Park UK

Question 31

What is the Urban-Fringe

Answer 31

A popular destination for several different industries from the secondary, tertiary and quaternary sectors (edge of cities) - Cheaper land - Room for expansion - Attractive environment, little pollution, good accessibility - Workers and work close by - Plenty of car-parking space

Question 32

Factors affecting the location of economic activity in each sector and the changes over time

Answer 32

- Access to raw materials - Availability of cheap land - Where your customers are/proximity to market - Good transport links - Climate - Energy - Infrastructure - Workforce - Soil fertility - Water supply e.t.c - The appeal of the urban-fringe

Question 33

Importance of different economic sectors and economic activities in LICs

Answer 33

- Many people are subsistence farmers (primary sector) - could get stuck in a cycle of poverty - LICs are reliant on the primary sector - normally just a few different goods - There is much underemployment (=too many people for the available jobs) - Jobs in the secondary and tertiary industries are higher paid but there are fewer of them due to a small number of skilled workers - Many countries are primary-product dependent and therefore not market resilient

Question 34

Importance of different economic sectors and economic activities in NICs

Answer 34

- Rapid increase in manufacturing due to foreign direct investment (FDI) from TNCs taking advantage of large populations, low wages and government incentives - Declining employment in the primary sector due to mechanisation - When NICs become advanced enough, a quaternary sector will begin to emerge

Question 35

Importance of different economic sectors and economic activities in HICs

Answer 35

- The majority of people work in the tertiary sector - due to increased incomes - A growing quaternary sector - due to investment and skills being boosted - Declining manufacturing due to: *MNCs (multi-national corporations) manufacturing abroad (offshoring) for cheap labour e.t.c. *Technological improvements reduce the need for workers

Question 36

What are the numbers of people involved in each economic sector influenced by

Answer 36

- Availability of raw materials - Globalisation - Mechanisation - Demographic changes - Government policies

Question 37

How has new technology caused several shifts in economy structure

Answer 37

- Mechanisation of agriculture - Advancements in industrial machinery - Transport reducing the “friction of distance” including horse and cart, train, car, plane, shipping and containerisation - Better communications e.g. phone, text, internet, Zoom, Teams, smartphones e.t.c - New high-tech industries created e.g. biotech, robotics, coding, aerospace, telecommunication, software programmers

Question 38

How does the multiplier effect grow the tertiary sector as a country becomes more developed

Answer 38

- As people earn more money and are paid better, they have more money to spend on basic requirements - After they’ve bought the basics, people have money left to spend on non-essentials (disposable income), including services e.g. entertainment, holidays, eating out e.t.c - This increase in demand means the tertiary sector grows - This means more jobs and better pay, which then means more people have higher incomes and the cycle continues

Question 39

What is the global shift of industry

Answer 39

The movement of industry from one country to another

Question 40

What is the trend for global shift of industry

Answer 40

- Predominantly secondary sectors from HICs to NICs and LICs - For various reasons, e.g cheaper labour, less government restriction e.t.c FINISH THHIS ONE

Question 41

What is the secondary sector