Unit 7

Sectors

Different categories the economy can be divided into based on product types or stages in the production process.

Primary Production

Includes agriculture, mining, energy, forestry, and fisheries—focused on extracting raw materials.

Secondary Production

Processing of raw materials drawn from the primary sector; reflects all forms of manufacturing.

Tertiary Production

Includes transportation, wholesaling, and retailing of finished goods to consumers, along with various services.

Quaternary Production

Business services such as finance, banking, insurance, real estate, advertising, and marketing.

Quinary Production

Consumer services such as retailing, tourism, entertainment, and public services.

Agriculture

Measured by the cash value of produced goods, with subsistence farming commonly found in less-developed areas.

Commodity Chain

The network through which goods move from production to consumption, connecting local producers to global markets.

Natural Resources

Production divided into sectors based on renewability and economic volatility, including mining and energy extraction.

Renewability

Classifies products based on whether they can be replenished naturally; minerals and fossil fuels are nonrenewable.

Sustainability

Refers to practices that maintain resources such as fisheries and forestry without harming ecosystems.

Manufactured Goods

Products derived from raw materials through value-added processing, significantly enhancing economic development.

High-Benefit Services

Sectors with salaried employees that provide extensive benefits, contrasting with low-benefit services.

Deindustrialization

The shift away from manufacturing as the primary economic source, leading to job losses in industrial sectors.

Gross Domestic Product (GDP)

The total dollar value of all goods and services produced within a country in one year.

Gross National Income (GNI)

The total economic value including domestic production and net income from abroad—exports minus imports.

Per Capita

Meaning 'for every head'; used in economic measures to divide total income or production by population.

Human Development Index (HDI)

A composite score of a country's development based on GDP per capita, literacy rate, education level, and life expectancy.

Dependency Theory

Suggests that LDCs depend on MDCs for investment and technology, which can perpetuate economic challenges.

Free-Trade Agreements

Regional agreements that enhance trade between countries by removing tariffs and other barriers.

Wallerstein’s World Systems Theory

A perspective explaining the global economic system's unequal development through core, semi-periphery, and periphery nations.

Weight-Losing and Weight-Gaining Industries

Terms used in Industrial Location Theory to describe manufacturing processes that affect the spatial decisions of factories.

Agglomeration Economies

Advantages that firms gain by locating near each other, benefiting from shared resources and knowledge.

Economies of Scale

Cost advantages reaped by companies when production becomes efficient, typically as a result of increased output.