Vocabs 5.1 Flashcards
Industrial Revolution
when manufacturing shifted from hand production to machines, leading to significant economic, social, and technological changes
industrialization
the shift from farming to manufacturing goods in factories
manufacturing
process of turning raw material into a good
cottage industry
the people who worked at home before the Industrial Revolution
factory system
The people who worked in the factories during Industrial Revolution
Least Cost Theory
Used to locate a factory, focus on cost of transportation, cost of labor, and agglomeration
weight-losing industry
if the raw material is heavier than the good
weight-gaining industry
if the raw material is lighter than the good
break-of-bulk point
a place where many differnet forms of transportation meets one another
agglomeration
Factories are often next to one another so they can share labor, and transportation
Gross Domestic Product (GDP)
measures the service produced in a country, can be expressed in whole number or per capita
consumption + investment + government spending + (exports-imports)
per capita
whole number/amount of population
Gross National Income (GNI)
measures the amount of income and wealth, can be expressed in whole number or per capita
Gross National Product (GNP)
Very close to GNI, but doesn’t include foreigner, and includes income from abroad, also counts the income from informal sectors
two exceptions
- excludes foreigners living in country
- includes all income earned abroad
purchasing power parity (PPP)
economic theory that compares different countries’ currencies
informal sector
sectors that are part of economy not taxed nor monitored by government
Gini coefficient
Measures the amount of income or wealth inequality in a country
gap between the richest and poorest residents in a country
expressed in a decimal from 0 to 1
- closer to 1 = more unequal
- closer to 0 = more equal
Human Development Index (HDI)
- Life expectancy
- Education (mean years of schooling)
- Income (uses GNI per capita)
Expressed form 0 to 1
closer to 1 → higher human development
closer to 0 → lower human development
Gender Inequality Index (GII)
Measures gender disparity between men and women
1. reproductive health
2. Empowerment
3. Labor market participation
4. Gender Parity
Expressed from 0 to 1
closer to 1 → more unequal
closer to 0 → more equal
microloans
small loans that can be used to start own business
