Download Unit 13 Econ Review

Review Econ Test
1. What contributed to the ancient Nile river
valley high population? Explain why
• The high population of the Nile fresh
water system allowed for population
to increase near the river
2. What is subsistence agriculture? Explain
what it is and give 1 example
• Traditional Economy's are usually classified as
subsistence farming, it is where the land usually
produces only enough food or crops to feed the
farmers and their families.
• Ex would be farmers in Most African, Asian , and
Latin American countries.
3. Compare the difference between Free Market
System and Command, explain which is better
• Free market systems is an economic system in which people own their own
goods and property and encourage competition. They make profit for
themselves.
• Command economies are run primarily by the government, usually grow
food not just for themselves but in order to sell it to others for cash to meet
their quotas
• It depends on you… usually Free Markets are more stable and survive longer
4. What has reduced famine around the world
today? Explain why
• The introduction of Commercial Agriculture
and Commercial Industries has allowed for
more production of foods, which has allowed
for the problem with famine in the world to
reduce.
5. Define “Economic Tiger”
• A nickname given to the economies of
Southeast Asia. Some of the tigers are
Indonesia, Singapore, Malaysia, Thailand,
South Korea and China.
6. Define Capital
• The term for how much money a business or
countries has. generally refers to financial
wealth, especially that used to start or
maintain a business
7. What is the Human Development Index
(HDI) ? explain why it is useful
• Is a composite statistic of life expectancy,
education, and per capita income indicators,
which are used to rank countries into four
tiers of human development.
• It is useful to see how countries today are doing
overall.
8. Define Primary Economics, give an example
• The primary sector of the economy is
the sector of an economy making direct use
of natural resources. Extracting resources and
direct production of food.
9. Define Secondary Economics, give an
example
• The Manufacture and production of goods such as
making of textiles and furniture is considered the second
level of economic activities
• Ex – logs cut from wooden planks and then assembled into
furniture.
10. Define Tertiary Economics, give an
example
• Is the third level or economic activities, this deals
with services this sector is identified by a variety
of services performed by people
• Ex Host, Mechanic , teachers
11. Define what is More Developed countries,
give examples in what makes them “more
Developed”
• Countries with advanced economics are
known as More Developed nations
• For example the HDI is very high in these
countries
12. Define what is Less developed countries,
give examples in what makes them “less
developed”
• Countries with weak economic systems is
known as Lower Developed countries
• Ex – When the HDI of a country is low its
due to its economy
13. What is GDP?
• Gross Domestic Product – is the Total
value of all goods and services produced
by a nation in a year.
14. Define Services
• When you buy services from people you
are buying the skills they produce for you
• Ex Mechanic, Farmer, Dentist, doctor
15. Explain the importance of the Suez Canal
AND the Pannama Canal
• The Panamma Canal has allowed for the
flow of goods to increase around the
world due to cutting down the route of
ships going around the Americas.
16. What is a command Economy? Explain
how it works
• An Economy run primarily by the
government, government decides what
needs to be produced, how much and
what to sell.
• Ex – Soviet Russia.
17. What is a Mixed economy? Explain how it
works
Most countries has this economy system, this is
where we blend features from other economy
systems into one
ex – china has a mix of free market and
command
18. Define Outsourcing, give an example
• Outsourcing is a practice used by different
companies to reduce costs by transferring
portions of work to outside suppliers rather
than completing it internally.