Unit 7 Vocab Flashcards
Primary Sector
- Take resources from Earth
- Controlled economy until 1800s
- Required physical skill
- Not many high-paying jobs
Farming, Mining
Agglomeration Economies
grouping of multiple businesses in order to share
costs
Gini Index (Coefficient)
measures the extent to which the distribution of income or consumption among individuals or households within an economy deviates from a perfectly equal distribution
Quinary Sector
- High-level decisions that impact millions of people
- High income
Research, Government, Corporations
Rostow’s Stages of Economic Growth
the economies of all countries could be placed within one of five different stages of economic growth. The stages include traditional society, preconditions to takeoff, takeoff, drive to maturity, and age of high mass consumption
Human Development Index
an indicator of the level of development for each country counstructed by the UN that is based on income, literacy, education, and life expectancy
World System’s Theory Model
claims that rich core capitalist societies succeed by exploiting poorer peripheral ones
Gross National Income
The value of the output of goods and services produced in a country in a year including money that leaves and enters the country
Quaternary Sector
- Managing and processing information
- Higher education required
- Higher pay/wages
Data, Software, Finance
Secondary Sector
- Making goods and products with raw materials
- Large growth between 1840-1960
Manufacturing
Gross Domestic Product
The value of the total output of goods and services produced in a country in a time period
Gender inequality Index
a measure of the extent of each countries gender inequality
Industrial Revolution
Began in 18th Century (1700-1800), Development of machines that ran on steam or water that made products
faster
* Required:
o Larger investments
o Larger work space
o Larger scale of production
o Larger market (expanded to global)
Informal Sector
the part of any economy that is neither taxed nor monitored by any form of government
Complementarity
when a country has the income, goods or services that another country wants
Offshoring
the practice of basing some of a company’s processes or services overseas, so as to take advantage of lower costs.
Formal Sector
jobs that the government regulates and offers benefits such as social security, health insurance, and retirement plans
Dependency Model
the idea that resources flow from a “periphery” of poor and exploited states to a “core” of wealthy states
Comparative Advantage
the ability of an individual or group to carry out a particular economic activity more efficiently than another activity.
Purchasing Power Parity
compares prices of goods from different countries to measure economic stability
Transnational Corperation
a company that conducts research, operates factories, and sells products in many contries.
Outsourcing
a decision by a corperation to turn over much of the responsibility for production to independant suppliers
Gross National Product
the total value of goods produced and services provided by a country during one year, equal to the gross domestic product plus the net income from foreign investments.
Cottage Industries
home businesses that hand-crafted goods
Least Cost Theory Model
- Factory owners build factories where
they can keep total costs low through
these factors:
o Limit transportation costs
o Limit labor costs
o Use agglomeration economics
Tertiary Sector
- Provides services to consumers
- Most of today’s work force
- Wages vary
Retail, Medicine
Per Capita
Per Person
Multiplier effect
- Production of Jobs: New Workers=More money=Spend Money=Expansion of other businesses
- Reduction of Jobs:
Less workers=Decrease in income=Saving money=Other businesses lose customers
