Unit 7

Question 1

Industry

Answer 1

any economic activity using machinery on a large scale to process raw materials into products

Question 2

Raw Materials

Answer 2

any metals, wood or other plant products, animal products, or other substances that are used to make intermediate or finished goods

Question 3

Industrialization

Answer 3

the process in which the interaction of social and economic factors causes the development of industries on a wide scale

Question 4

Industrialization Revolution

Answer 4

the radical change in manufacturing methods that began in Great Britain in the mid-18th century and was marked by the shift from small-scale, hand-crafted, muscle-powered production to power-driven mass production

Question 5

Cottage Industries

Answer 5

preindustrial form of manufacture in which members of families spread out through rural areas worked in their homes to make goods

Question 6

Economic Sectors

Answer 6

collections of industries engaged in similar economic activities based on the creation of raw materials, the production of goods, the provision of services, or other activities

Question 7

Primary Sector

Answer 7

economic sector associated with removing or harvesting products from the earth; includes agriculture, fishing, forestry, mining or quarrying, and extracting liquids or gas

Question 8

Secondary Sector

Answer 8

economic sector associated with the production of goods from raw materials; includes manufacturing, processing, and construction

Question 9

Tertiary Sector

Answer 9

economic sector that includes a host of activities that involve the transport, storage, marketing, and selling of goods or services; also called the service sector

Question 10

Quaternary Sector

Answer 10

economic sector that is a subset of tertiary sector activities that require workers to process and handle information and environmental technology

Question 11

Quinary Sector

Answer 11

economic sector that is a subset of the quaternary sector; involves the top leaders in government, science, universities, nonprofits, health care, culture, and media

Question 12

Postindustrial Economy

Answer 12

an economic pattern marked by predominant tertiary sector employment-with a good share of quaternary and quinary jobs

Question 13

Gross Domestic Product(GDP)

Answer 13

the total value of all goods and services produced by a country’s economy in a year

Question 14

Dual Economies

Answer 14

economies with two distinct distributions of economic activity across the economic sectors

Question 15

Least-Cost Theory

Answer 15

industrial location theory proposed by Alfred Weber suggesting that businesses locate their facilities in a particular place because that location minimizes the costs of production

Question 16

Break of Bulk Points

Answer 16

location where it is more economical to break raw materials into smaller units before shipping them further

Question 17

Bulk Reducing Industries

Answer 17

industry in which the raw materials cost more to transport than the finished goods

Question 18

Bulk Gaining Industries

Answer 18

industry in which the finished goods cost more to transport than the raw materials

Question 19

Industrial Parks

Answer 19

a collection of manufacturing facilities in a particular area that is typically found in suburbs and is located close to highways to facilitate movement of raw materials and finished products

Question 20

Human Development Index (HDI)

Answer 20

a measure that determines the overall development of a country by incorporating three key dimensions of human development: life expectancy at birth, access to education measured in expected and mean years of schooling, and standard of living measured by GNI per capita

Question 21

Gender Development Index (GDI)

Answer 21

a measure that calculates gender disparity in the three basic dimensions of human development: health, knowledge, and standard of living

Question 22

Gender Inequality Index(GII)

Answer 22

a measure that calculates inequality based on three categories: reproductive health, empowerment, and labor-market participation

Question 23

Women’s Empowerment

Answer 23

women’s options and access to participate fully in the social and economic spheres of a society

Question 24

Labor Market Participation (LMP)

Answer 24

a rate that measures an economy’s active labor force, calculated by taking the sum of all employed workers and dividing that number by the working-age population; also known as labor-force participation (LFP) rate

Question 25

Microloans

Answer 25

a very small short-term loan with low interest intended to help people in need

Question 26

Stages of Economic Growth

Answer 26

a model that suggests that all countries can be categorized on a spectrum from traditional to modern and that to become modern, countries need to pass through distinct stages of economic growth in succession

Question 27

Dependency Theory

Answer 27

a theory that describes the development challenges and limitations faced by poorer countries and the political and economic relationships poorer countries have with richer countries

Question 28

Commodity Dependence

Answer 28

an aspect of dependency theory that occurs when more than 60 percent of a country’s exports and economic health are tied to one or two resources

Question 29

Comparative Advantage Complementarity

Answer 29

the mutual trade relationship that exists between two places based on the supply of raw material and the demand for finished products or services

Question 30

Neoliberalism

Answer 30

beliefs that favor free-market capitalism in which trade has no constraints from government

Question 31

Deindustrialization

Answer 31

process by which a country or area reduces industrial activity, particularly in heavy industry and manufacturing

Question 32

Growth Poles

Answer 32

a place of economic activity clustered around one or more high-growth industries that stimulate economic gain by capitalizing on some special asset

Question 33

Just in Time Delivery

Answer 33

a system in which goods are delivered as needed so that companies keep in inventory only what is needed for near-term production

Question 34

Fordism

Answer 34

a highly organized and specialized system for industrial production that focuses on efficiency and productivity in mass production; named after Henry Ford

Question 35

Post Fordism

Answer 35

system focused on small-scale batch production for a specialized market and flexibility that allows for a quick response to changes in the market

Question 36

Offshore Outsourcing

Answer 36

the process by which services or one or more aspects of production are moved to an organization in another country

Question 37

International Division of Labor

Answer 37

a pattern of production and labor in which different countries are engaged in distinct aspects of production

Question 38

Multiplier Effects

Answer 38

the economic effect in which a change creates a larger change, such as when a new manufacturing plant grows the economy by giving rise to more related jobs and services

Question 39

Special Economic Zones(SEZ)

Answer 39

an area within a country that offers more favorable economic regulations (such as tax benefits or no tariffs) to attract foreign businesses

Question 40

Export Processing Zones

Answer 40

an area within a country that is subject to more favorable regulations (usually including the elimination of tariffs) to encourage foreign investment and the manufacturing of goods for export

Question 41

Free Trade Zones(FTZ)

Answer 41

a relatively large geographic area within a country in which businesses pay few or no tariffs on goods to encourage or facilitate its role in international trade

Question 42

Ecotourism

Answer 42

a form of tourism based on the enjoyment of natural areas that minimizes the impact to the environment