question

Economic

answer

Pertaining to the production, distribution, and use of income, wealth, and commodities.

question

Development

answer

the act or process of developing; growth; progress: child development; economic development

question

Gross National Product (GNP)

answer

Measure of the total value of the officially recorded goods and services produced by the citizens and corporations of a country in a given year. Includes things produced inside and outside a country's territory.

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Gross Domestic Product (GDP)

answer

Measure of the total value of the officially recorded goods and services produced by the citizens and corporations of a country in a given year.

question

Gross National Income (GNI)

answer

Measure of the monetary worth of what is produced within a country plus income received from investments outside the country. ** Most common measurement used today.

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Developed Countries-(DCs)

answer

have high levels of industrialization, urbanization ; standard of living

question

Underdeveloped (UDCs) or Developing Countries

answer

are moving toward developed status-not as highly industrialized or urbanized with a lower standard of living

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Primary Sector

answer

jobs that extract raw materials from the earth. ex. farming, mining, fishing, and forestry.

question

Secondary Sector-

answer

jobs that include manufacturers that process, transform, and assemble raw goods into useful products and then fabricate them into finished consumer goods.

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Tertiary Sector-

answer

basically salespeople; it involves the provision of goods and services in exchange for payment. ex. retailing, banking, law, education, and government.

question

Human Development Index

answer

is a composite statistic of life expectancy, education, and income indices to rank countries into four tiers of human development. It was created by economist Mahbub ul Haq, followed by economist Amartya Sen in 1990, and published by the United Nations Development Programe

question

Formal Economy

answer

the legal economy that governments tax and monitor.

question

Informal Economy

answer

the illegal or uncounted economy that governments do not tax or keep track of.

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Three Tier Structure

answer

Core Processes that incorporate higher levels of education, higher salaries, and more technology * Generate more wealth in the world economy Periphery Processes that incorporate lower levels of education, lower salaries, and less technology * Generate less wealth in the world economy Semi-periphery Places where core and periphery processes are both occurring. Places that are exploited by the core but then exploit the periphery. * Serves as a buffer between core and periphery

question

Global Economic Disparities

answer

Much of the disparity existed as Colonialism was established by European nations. The Industrial Revolution increased the need for raw materials and markets for finished goods. Neo-colonialism refers to the economic dominance of the core over the former colonial nations-economic rather than political control

question

Conditions That Hamper Development

answer

1. Political instability and corruption 2. Exploitation of natural resources and workers 3. Dependence of agricultural products or primary products 4. Misuse of foreign assistance 5. Misguided priorities 6. Cultural resistance to modernization

question

Costs of Economic Development

answer

Industrialization - Export Processing Zones (EPZs), maquiladoras, and special economic zones (SEZs). Agriculture - Subsistence and agricultural conglomerates - Desertification-especially in Africa - Soil erosion Tourism - may have serious negative consequences - Use of scarce commodities - Foreign investors make the profit

question

Tourism (Boom or Bust)

answer

- contributes little to a country's development - Hotels & other facilities are often owned by transnational corporations - jobs can be demeaning & dehumanizing or even insulting - jobs pay minimal wages for menial tasks

question

Tourism (Boom or Bust)

answer

- Profits are reinvested in airports, cruise ship ports & other infrastructure to serve tourists - Tourists use up valuable resources such as food & fresh water - Tourism can debase or change a local culture - An invasion by wealthy foreigners can breed hostility and resentment - Harsh contrast between gleaming modern tourist hotels and poor workers housing

question

Dependency Theory

answer

The political and economic relationships between countries and regions of the world control and limit the economic development possibilities of poorer areas. - Economic structures make poorer countries dependent on wealthier countries. - Little hope for economic prosperity in poorer countries.

question

The total value of the output of goods and services in a year in a country is its

answer

gross domestic product

question

Gross domestic product (GDP) is the

answer

total value of outputs of goods and services produced in a country during a year.

question

An example of a primary sector activity is

answer

mining.

question

Processing of computer information is an example of which sector of the economy?

answer

Tertiary

question

The secondary sector of the economy includes which of the following?

answer

A) data processing B) mining C) government D) construction

question

In MDCs, employment is increasing more rapidly in which of the following sectors?

answer

Tertiary

question

The primary sector of the economy includes which of the following?

answer

A) data processing B) beverage bottling C) government D) sheep herding E) banking

question

The value of a product minus the costs of raw materials and energy is

answer

Value added

question

________ is an example of a secondary sector activity.

answer

Manufacturing

question

In less developed countries, consumer goods such as telephones, televisions, and motor vehicles are

answer

familiar to many but owned by relatively few.

question

Examples of material conditions include

answer

drinking water and sewage systems.

question

A country that has a higher level of development exhibits a(n

answer

improvement in material conditions.

question

Per capita GDP is a poor indicator of which of the following?

answer

A) the approximate level of material well being in a country B) the number of countries below the poverty level C) the distribution of wealth within a country D) the spatial distribution of global wealth E) potential for providing all citizens with a comfortable life

question

Per capita GDP is a good indicator of which of the following?

answer

A) the approximate level of spiritual well being in a country B) the number of countries below sea level C) the distribution of wealth within a country D) the political dimensions of a population E) potential for providing all citizens with a comfortable life

question

The inequality-adjusted human development index of the United States is

answer

inferior to that of Canada and most Western European countries.

question

Compared to less developed countries, more developed countries have higher rates of

answer

Literacy

question

People are more productive in more developed countries because they

answer

have access to more technology.

question

If a country has a large number of publishers and globally esteemed universities, you might surmise that the country is most likely

answer

an MDC

question

Compared to less developed countries, more developed countries have lower

answer

percentages of GDP spent on education.

question

The difference in per capita GDP between the more developed and less developed regions is

answer

Widening.

question

The North American region has high rates of material development but troubling levels of

answer

inequality.

question

The Gender Inequality Index (GII)

answer

compares the levels of indicators for females to those of males within a country.

question

Severe gender inequality is a challenge to development because

answer

it severely limits the economic and social mobility of women, as well as families that are headed by women.

question

In terms of the GII, most African countries have

answer

rates far below the United States and Western Europe

question

Since 1990, most countries have seen a decline in previous patterns of

answer

gender inequality.

question

What is an indicator of global gender inequality?

answer

- Women on average have only two-thirds of the income of men in MDCs. - Women have much lower incomes than men in LDCs. - Female literacy is much lower than males in Sub- Saharan Africa. - Women hold less than one-fourth of managerial jobs in LDCs where data are available

question

Gender inequality is a challenge to development because

answer

it leads to larger family sizes.

question

Petroleum reserves in Southwest Asia and North Africa are

answer

clustered primarily in the Persian (Arabian) Gulf states

question

Saudi Arabia has successfully employed the international trade alternative primarily because of

answer

petroleum reserves.

question

The United States has

answer

more coal reserves than China or Russia.

question

The Chernobyl incident in 1986 involved

answer

a nuclear power accident.

question

The principal benefit of the self-sufficiency approach is to promote

answer

balanced growth of all economic sectors

question

In contrast to the international trade approach, the self-sufficiency approach to development

answer

attempts to spread investment through all sectors of the economy.

question

Traditional barriers to international trade have included

answer

requiring licenses for importers.

question

The biggest problem faced by less developed countries in financing development is

answer

inability to repay loans.

question

The major economic asset of the Russian region is

answer

oil reserves

question

Southwest Asia and North Africa may become more developed primarily because of what characteristic?

answer

abundant petroleum reserves

question

Population density was traditionally low in North Africa because of

answer

its dry climate

question

According to Rostow's development model, the process of development begins when

answer

an elite group initiates innovative activities.

question

If the per capita GDP in a given country is about $1,500, this indicates that it is a

answer

less developed country.

question

The highest levels of development within Latin America are generally found in

answer

southern South America.

question

Sub-Saharan Africa has seen some development because of

answer

investment in the infrastructure of port cities, despite ignoring infrastructure in many other areas.

question

The share of GDP in the secondary sector is now larger in LDCs than MDCs.

answer

True

question

Less developed countries can be distinguished from more developed countries according to social and demographic characteristics, as well as economic ones

answer

True

question

GDP per capita is a more meaningful measure of development than gross domestic product alone.

answer

True

question

The three large relatively developed regions in the world are North America, Western Europe, and Eastern Europe.

answer

True

question

Gender inequality exists in every country of the world

answer

True

question

Developing countries are increasingly pursuing the international trade approach to development.

answer

True

question

India and China are examples of countries which had pursued the self-sufficiency alternative to development.

answer

True

question

Southwest Asia ; North Africa and Latin America are the less developed regions with the most favorable balance between population and resources

answer

True

question

The availability of energy and other resources is linked to the level of development

answer

True

question

Market Based (Model of Development)

answer

- Importance of the existence of the free market - Government inefficiency restricts growth - Role of government to liberate markets and promote competition - Establishment of property rights - Problems: -Existence of market failure -Problems of lack of infrastructure -Problems of equity in allocation

question

How Government Policies Affect Development

answer

1. Governments get involved in world markets 2. Governments price commodities 3. Governments affect whether core processes produce wealth 4. Governments shape laws to affect production 5. Governments enter international organizations that affect trade 6. Governments focus foreign investment in certain places 7. Governments support large-scale projects

question

Islands of Development

answer

Places within a region or country where foreign investment, jobs, and infrastructure are concentrated

question

Low Levels of Social Welfare (Barriers to Economic Development)

answer

1. Lack of education, High illiteracy 2. Trafficking-bullied into poor working conditions 3. Lack of proper health care 4. Poor water supply ; sanitation 5. Widespread Disease vectored diseases-spread by a host. Malaria-kills 150,000 children each month

question

Political Instability (Barriers to Economic Development)

answer

military dictatorships, corruption, revolution

question

Foreign Debt (Barriers to Economic Development)

answer

- World Bank or International Monetary Fund - Structural adjustment loans-economic reform required

question

Gender Inequality

answer

Know It

question

Industrial Revolution:

answer

dramatic innovations in manufacturing, mining, transportation and communication that results in rapid changes in society and commerce

question

1st Industrial Revolution:

answer

1730s to 1860s First Phase of the Industrial Revolution. Textiles, Iron Production, Steam Power

question

2nd Industrial Revolution:

answer

1860s to 1914 Second Phase of the Industrial Revolution Steel, Chemicals, Railroads, Gasoline Engine, and mass production.

question

3rd Industrial Revolution:

answer

Post WWII Third Phase of the Industrial Revolution high technology-computerization, miniaturization and automation

question

5 things about the Chapter you should be familiar with........#1

answer

Industry is based on transportation and labor costs. Weber's least cost theory suggests that a production point must be located within a "triangle", with raw materials coming from at least two sources. Weight-reducing industries must have their production point closer to the market. Weight-reducing industries must have their production point closer to the source of raw materials.

question

5 things about the Chapter you should be familiar with........#2

answer

The five main means of industrial transportation are truck, train, airplane, pipeline, and ship. Each has advantages and disadvantages for hauling raw materials or finished products to production points and markets around the globe

question

5 things about the Chapter you should be familiar with........#3

answer

Basic industries are city-forming, whereas nonbasic industries are city-serving industries. Basic industries are the main business for which a city is known. Detroit/automobiles, Pittsburgh/steel, San Jose/ computer chips are just three examples of basic industries in major urban area in the United States

question

5 things about the Chapter you should be familiar with........#4

answer

The main factor in determining an area's development is Human Development index, which measures life expectancy, literacy , education, and overall standard of living for different countries around the world. It was developed by Pakistani economist Mahbub Haq in 1990, and has since been used by the United Nations as the primary indicator of countries levels of development

question

5 things about the Chapter you should be familiar with........#5

answer

The core-periphery model describes regions as core, semi-periphery, and periphery areas. It also describes four areas, the industrial core, upward transition, downward transition, and resource frontiers. The model can be used from a worldwide scale down to an urban scale to analyze city zones.

question

Agglomeration

answer

Grouping together of many firms from the same industry in a single area for collective or cooperative use of infrastructure and sharing of labor resources.

question

capitalism

answer

An economic system based on private property and free enterprise.

question

cumulative causation

answer

A process through which tendencies for economic growth are self-reinforcing; an expression of the multiplier effect, it tends to favor major cities and core regions over less-advantaged peripheral regions

question

Maquiladoras

answer

the term given to zones in Northern Mexico with factories supplying manufactured goods to the U.S. market. The low-wage workers in the primarily foreign-owned factories assemble imported components and/or raw materials and then export finished goods.

question

footloose industry

answer

descriptive term applied to manufacturing activities for which the cost of transporting material or product is not important in determining location of production; and industry or firm showing neither market nor material orientation

question

ubiquitous

answer

existing everywhere at the same time; constantly encountered; widespread (exp-McDonalds)

question

Special Economic Zones

answer

Region offering special tax breaks, eased environmental restrictions, and other incentives to attract foreign business and investment.

question

standard of living

answer

Quality of life based on ownership of necessities and luxuries that make life easier.

question

brain drain

answer

the loss of well-educated people such as doctors or engineers to another country

question

Brain gain

answer

an increase in the number of highly trained, foreign-born professionals entering a country to live and work where greater opportunities are offered

question

renewable resources

answer

Any natural resource that can replenish itself in a relatively short period of time, usually no longer than the length of a human life.

question

nonrenewable resources

answer

A natural resource that is not replaced in a useful time frame.

question

Fossil fuels

answer

Coal, oil, natural gas, and other fuels that are ancient remains of plants and animals.

question

OPEC

answer

An organization of countries formed in 1961 to agree on a common policy for the production and sale of petroleum.

question

What is the most important cost in Weber's least cost theory?

answer

Transportation Costs

question

Neocolonialism

answer

Also called economic imperialism, this is the domination of newly independent countries by foreign business interests that causes colonial-style economies to continue, which often caused monoculture (a country only producing one main export like sugar, oil, etc).

question

What factor would most likely increase the cost of transportation the most?

answer

weight

question

What is used to determine the Human Development Index for economic development?

answer

Literacy Rate

question

What region of the world has the lowest Gender Development Index?

answer

Sub-Saharan Africa

question

Special Economic Zones are most common in what country?

answer

China

question

Canada's northern region would be classified as what according to the core-periphery model?

answer

Resource Frontier

question

The Country with the largest oil reserves in the world is ?

answer

Saudi Arabia

question

The country with the largest coal reserves in the world is?

answer

United States

question

What country possesses the greatest natural gas reserves?

answer

Russia

question

This cartel, established in 1960, is the primary group in the world setting oil prices?

answer

Organization of Petroleum Exporting Countries

question

In the 1700s, water pollution increased significantly when the chemical industry began to contribute to the textile industry through methods of

answer

bleaching and dyeing.

question

Given the earlier history of the chemical industry, we can hypothesize that its 20th-century contributions to the textile industry began to include

answer

the creation of synthetic fabrics.

question

The Industrial Revolution began in

answer

Great Britian

question

The Industrial Revolution began in

answer

in the late 1700's

question

Prior to the Industrial Revolution, industry was geographically

answer

dispersed

question

The most important transportation improvement in the eighteenth century was the

answer

canal

question

Approximately three-fourths of the world's industrial production is concentrated in three regions, including which of the following?

answer

eastern North America and northwestern Europe

question

Outside of the three world regions where industry is concentrated, the next two largest industrial producing countries are

answer

Brazil and India

question

The main source of power for steam engines and blast ovens is produced from

answer

coal

question

What mining region has the most varied mineral deposits of the world, with over 1,000 minerals?

answer

The Ural Mountains

question

The world's chief source for copper is

answer

Chile

question

bulk-reducing industry

answer

An industry in which the final product weighs less or comprises a lower volume than the inputs.

question

Metal fabrication plants are an example of a bulk-gaining industry because

answer

separate parts are combined to make more complex and massive products

question

Situation Costs

answer

minimize transport costs

question

The Chicago area became a significant asset for the Western Great Lakes region owing to its steel industries and its

answer

access to the nation's transportation network.

question

The shift in steel production locations in the United States from the mid-nineteenth century until the mid-twentieth century can best be described as

answer

starting in the Pittsburgh area and then migrating towards the Midwest before ending up on the East and West coasts, as well as the Chicago area.

question

Because the motor vehicle assembly industry is typically described as a bulk-gaining industry as well as a just-in-time delivery system, the most important factor when selecting a location for a new Toyota or Honda assembly plant in the United States was

answer

minimizing the cost of shipping finished vehicles to its customers.

question

Although transportation costs rise because breaks in transportation, we can surmise that over very long distances the lowest-cost form of transporting goods is by

answer

ship

question

Although many factory laborers in MDCs are paid $________ per hour, factory laborers in LDCs may be paid less than $________ per hour.

answer

35;1

question

The Tennessee Valley Authority brought

answer

electricity to much of the rural South in the 1930s.

question

Mexico's maquiladora plants

answer

have an advantage of proximity to U.S. markets.

question

Prior to the Industrial Revolution, cottage industries were most common

answer

True

question

The dominant industrial power in the nineteenth century was Great Britain.

answer

True

question

The invention of the steam engine in 1769 by James Watt is considered the most important invention for the development of factories at the beginning of the Industrial Revolution.

answer

True

question

About three-fourths of world industrial production is clustered in three regions

answer

True

question

The Rhine-Ruhr River valley in Europe is near large deposits of coal

answer

True

question

The optimal location for a factory manufacturing a bulk-gaining product is likely to be one that minimizes the cost of transporting the product to the market.

answer

True

question

Communications-oriented industries, like newspapers, tend to locate near their markets

answer

True

question

China has the largest labor force employed in manufacturing

answer

True

question

Newly constructed factories in more developed countries are more likely to be in suburban or rural areas than in urban centers.

answer

True

question

The site factor most affecting the relocation of industry in the twenty-first century is labor

answer

True

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