Goods and services are traded without exchanging money (barter system).
What is a Command economy?
The production of goods and services is determined by a central government which owns the means of production. Production does not always reflect consumer demand and is most associated with a Communist government.
What is a Market economy?
The production of goods and services is determined by demand from consumers through the process of supply and demand. Also called free-enterprise, free market, or capitalism.
What is a Mixed economy?
A combination of command and market economies where the government divides goods and services so that all people will benefit. In reality, most economies are mixed economies with varying levels of government involvement. Mixed economies are sometimes referred to as socialist economies.
What is Socialism?
A belief that society should democratically distribute wealth evenly throughout a society. Usually, the government determines how the wealth is distributed.
What are the three terms used by Geographers to describe a nation's economic development?
Diversified economies, the most advanced technologies, the highest levels of productivity, the highest levels of economic development and are typically the wealthiest nations.
What characteristics describe a newly industrialized nation?
They describe nations which are in the beginning stages of industrialization with a large manufacturing (secondary) sector. Their economies are not as advanced or as diversified as developed nations, but they are not as poor as developing nations either.
What characteristics describe a developing nation?
These nations have very little industry or have not industrialized at all and are basically the opposite of the developed nations. These are typically the poorest nations.
What is the two biggest and most important statistics used by Geographers to determine a nation's economic development or social well-being?
1) GDP - Gross Domestic Product 2) Per Capita Income or Per Capita GDP
What is the name of the index created by the United Nations to measure a nation's overall economic development?
The Human Development Index - HDI
What is the definition of standard of living?
It measures the ability of a population to access the basic necessities of life: food, shelter, basic health care & clothing.
What is the relationship between a nation's standard of living and it's economic development?
The higher a nation's GDP (which leads to..) The higher the per capita income (which leads to..) The higher the disposable income (which leads to..) The higher the standard of living in that nation
Who do developing nations rely on to fill the labor needs of industry? Why?
Women; they will accept a lower wage to do the same job as a man.
What are three types of resources which impact a nation's economic growth?
1) Natural resources 2) Human resources 3) Capital resources
What is political stability?
The establishment of a stable government which follows the "rule of law" and promotes economic prosperity.
What is a landlocked nation?
A country surrounded by other countries and with no direct outlet to the sea or access to free trade.
What is scarcity?
The condition of something being scarce or deficient; not an inadequate amount of something.
What is sustainable economic development?
The ability to meet the needs and aspirations of the present without compromising the future by destroying the environment or consuming all non-renewable resources.
What is a "carbon footprint"?
The measure of human pressures on the environment from the consumption of renewable resources and the production of pollution.
What is infrastructure?
The basic support systems needed to keep an economy going including power, communication, transportation, water, sanitation, and education systems.
What is subsistence agriculture (farming)?
Most of the produce grown is consumed by the farmer and family and is more commonly found in developing (periphery) nations.
What is commercial agriculture (farming)?
The produce is meant for public sale and is more commonly found in developed (core) nations.
What is cottage industry?
Industry that can be carried on at home by family members using their own equipment.
What is commercial industry?
The mass production of goods through the process of manufacturing, typically driven by supply and demand.
What is a service industry?
Any economic activity that produces a service (doctor, lawyer, teacher, etc.) rather than a product.
What are the four levels of economic activity?
1) Primary 2) Secondary 3) Tertiary 4) Quaternary
What kinds of economic activities are involved in the Primary level?
The gathering and selling of raw materials; subsistence agriculture and cottage industry.
What kinds of economic activities are involved in the Secondary level?
Adding value to materials usually by changing their form through the process of manufacturing; commercial farming and commercial industry.
What kinds of economic activities are involved in the Tertiary level?
Providing business and professional services, such as teachers, salespeople, and doctors; service industry.
What kinds of economic activities are involved in the Quaternary level?
Providing information, management, and research services by highly trained persons, such as scientific research and information technology (IT).
What is the level of economic development of a nation which engages in large quantities of Primary economic activities?
A developing or poor nation.
What is the level of economic development of a nation which engages in large quantities of Secondary economic activities?
A newly industrialized nation.
What is the level of economic development of a nation which engages in large quantities of Tertiary and/or Quaternary economic activities?
A developed or wealthy nation.
What are the BRIC nations and what level of economic development have they reached?
Brazil, Russia, India and China; these nations are considered newly industrialized and are on the verge of becoming developed (core) nations in the future.
What is the of the name of the international trade agreement which promotes free trade and the elimination of trade barriers between Canada, the United States and Mexico?
NAFTA - North America Free Trade Agreement
What is the of the name of the international trade agreement which promotes free trade and the elimination of trade barriers between European member nations?
The EU - European Union
What is the relationship between a country's economic development and its infrastructure?
The larger or better the infrastructure, the higher the economic development of a nation.