APHG Unit 7 vocab 1-34

Industrial rev

The rapid transformation of the new economy through the introduction of machines, new power sources, and new chemical processes in Europe and the US between 1760 and 1830

Labor Productivity

The average amount of goods or services produced per worker per unit of time

Commercial farmers

Farmers who raise crops and live-stock to sell in the market at a profit rather than raising them for their own consumption

Wage labor

A socioeconomic relationship in which an employer pays a worker to complete a task, sometimes by the day or by the hour

Working class

the people in an industrial economy who depend on wage labor to obtain the necessities of life

Capitalist class

People who own the means of production and pay the wages of workers

Middle class

people who are either salaried professionals (lawyers, educators, and physicians) or office wage workers (bank tellers and store clerks)

Labor union

associations of workers in particular industries established to collectively bargain with capitalists

Mass consumption

The purchase of large amounts of mass-produced goods by large numbers of people

International division of labor

the situation in which the labor forces of different countries and world regions play complementary roles in an interdependent global economy

Economic sectors

groupings of industries based on what is produced and the activities of the workforce

Primary sector

Industries that extract natural resources from the environment

Secondary sector

industries that process the raw materials extracted by primary industries, transforming them into finished, usable forms

Tertiary sector

industries that provide services to businesses and consumers, including all the different types of work necessary to transport and deliver goods and resources

Quaternary sector

the portion of the economy dedicated to intellectual and informational services, such as scientific and development

Quinary sector

The portion of the economy where the highest-level management decisions are made in the areas of business, government, education, and science

Base industry

An industry of disproportionate economic importance and on whose existence other industries and employment sectors depend

Semi-periphery

Countries or regions whose economies have elements of both the core and the periphery

Break of bulk point

a location where cargo is transferred from one mode of transportation to another

Containerization

The system of intermodal freight transport using shipping containers

Weber’s least cost theory

transportation costs and labor costs play a strong role in determining the location of manufacturing facilities

World system theory

Wallerstein’s theory of economic development that regards world history moving through a series of socioeconomic systems, culmination in the modern world system by about year 1900

Dependency Theory

the theory that the periphery is poor because it was economically dependent on the core in a disadvantageous relationship originally established under colonialism and imperialism

Commodity dependence

Occurs when commodities account for more than 60 percent of the value of a country’s total exports

Gross National Product (GNP)

the total value of all the goods and services made by a country’s residents and businesses in a specific time period, regardless of the county or location in which they were made

Gross Domestic Product (GDP)

The total value of all goods and services produced within a country over a specific period, regardless of the producer’s national origin

Gross national income (GNI)

the total income of a country’s residents and businesses, including investment income, regardless of where it was earned, as well as money received from abroad such as foreign investments and development aid

Per Capita

a country’s GDP divided by its total population

Purchasing power parity

Measures how much a common “basket of goods” cost locally in the currency of each country being compared

Gender inequality index

A statistical measure of gender inequality that combines data on reproductive health, empowerment, and labor-market participation

Human development index

A statistical measure of human achievement that combines data on life expectancy at birth, education levels, and GNI per capita population

formal sector

The part of the economy that is officially recorded with the government

Informal sector

The part of any economy that is not officially recorded, monitored, or taxed by the government

Income distribution (Gini coefficient)

How a country’s total GDP is distributed among the individuals in its population