Chapter_3_-_Google_Docs (copy)

What are the main economic models and theories to know for Unit 3 in AP Human Geography?

Brandt Line, Core-Periphery Concept, Dependency Theory, Rostow’s Modernization Model, World Systems Theory.

Fill in the blank: The key economic terms include __________, break-of-bulk, comparative advantage, and deindustrialization.

agglomeration industries

What is HDI in the context of economic development?

Human Development Index, a measure of a country's social and economic development.

Fill in the blank: The sectors of the economy are primary, secondary, __________, and quaternary.

tertiary

What does the Brandt Line illustrate?

A visualization dividing the world into the more developed 'Global North' and the less developed 'Global South'.

Fill in the blank: Weber’s Least-Cost Theory suggests that industries should locate to minimize _________, labor, and agglomeration costs.

transportation

What are some of the problems created by industrialization in developed countries?

Pollution, deindustrialization, and job insecurity due to shifts towards a service economy.

Fill in the blank: Theories such as _________ argue that economic relationships keep LDCs dependent on MDCs.

Dependency Theory

What is the significance of transnational corporations (TNCs)?

They operate in multiple countries, often locating production in LDCs to take advantage of lower costs.

Fill in the blank: The primary sector involves _______ resources, whereas the quaternary sector involves knowledge-based services.

extracting

What is the Core-Periphery Concept?

A model that describes how economic, political, and cultural power is distributed between dominant core regions and dependent peripheral areas.

What does Dependency Theory explain?

The theory that resources flow from poor and underdeveloped states to a wealthy state, enriching the latter at the expense of the former.

Define Rostow’s Modernization Model.

A five-stage theory of development that argues economies develop in a linear fashion from traditional society to the age of high mass consumption.

What does World Systems Theory emphasize?

A view that focuses on the global economic system, viewing the world as a complex system of interdependent nations, divided into core, semi-periphery, and periphery countries.

What is agglomeration in economic terms?

The clustering of industries and businesses in a specific area to achieve production efficiencies and cost reductions.

Describe deindustrialization.

A process whereby the industrial sectors of an economy decline, leading to job losses and a shift towards a service-based economy.

What is the significance of the Human Development Index (HDI)?

HDI measures average achievement in key dimensions of human development: health, education, and standard of living.

List the four sectors of the economy.

Primary, Secondary, Tertiary, and Quaternary sectors.

Explain the term 'break-of-bulk'.

A point where goods are transferred from one mode of transport to another, often leading to lower transportation costs.

What are transnational corporations (TNCs)?

Corporations that operate in more than one country and are often involved in global production and distribution.

What is the definition of economic development?

The process through which a nation improves the economic, political, and social well-being of its people.

What is the purpose of economic indicators?

To measure the economic performance and health of a country.

What are examples of economic indicators?

GDP, unemployment rate, inflation rate, and HDI.

What is GDP?

Gross Domestic Product, the total value of all goods and services produced within a country's borders in a specific time period.

What does the term ‘regional development’ refer to?

The efforts and policies directed towards improving the economic conditions of specific areas.

What are mixed economies?

Economic systems that combine elements of both capitalism and socialism.

What does urbanization mean?

The process by which an increasing percentage of a population lives in cities and suburbs.

What is the role of infrastructure in economic development?

Infrastructure supports economic activity by providing essential services like transportation, communication, and utilities.

What are microfinance institutions?

Organizations that provide financial services to low-income individuals or those lacking access to typical banking services.

Define sustainable development.

Economic development that is conducted without depletion of natural resources.

What is the role of foreign direct investment (FDI)?

Investment made by a company or individual in one country in business interests in another country.

What is the difference between relative poverty and absolute poverty?

Relative poverty is defined in relation to the economic status of other people in society, while absolute poverty refers to a set standard of income.

What does the term ‘population density’ refer to?

The number of people living per unit of area, typically expressed as people per square kilometer.

What is a demographic transition model?

A model that describes the transformation of countries from having high birth and death rates to lower birth and death rates.

Explain informal economy.

Economic activities that are not monitored or regulated by the government.

What is the primary goal of taxation?

To generate revenue for government expenditure and to redistribute resources within society.

What are export-led growth strategies?

Economic strategies that focus on increasing the production of goods and services intended for export.

What is industrialization?

The process of transforming an economy from primarily agrarian to one based on the manufacturing of goods.

What are the three main types of economies?

Traditional, command, and market economies.

What does the term ‘brain drain’ mean?

The emigration of highly trained or qualified people from a particular country.

What is urban sprawl?

The uncontrolled expansion of urban areas into surrounding rural land.

Define the term 'gentrification'.

The process of renovating and improving a district so that it conforms to middle-class taste.

What does 'localized economy' mean?

An economic system that prioritizes local resources, production, and consumption.

What are the primary components of a market economy?

Supply and demand, competition, and private property.

What is a planned economy?

An economic system where the government makes all economic decisions.

Explain the concept of 'value chain'.

The full range of activities that businesses engage in to bring a product to the market.

What is the role of government in a capitalist economy?

To regulate the economy, provide public goods, and ensure competition.

Define 'entrepreneurship'.

The process of starting and managing a new business venture.

What does the term 'subsidy' mean?

Financial assistance granted by the government to encourage the production of certain goods.

What is 'inflation'?

The rate at which the general level of prices for goods and services is rising.

What is the significance of 'consumer confidence'?

A measure of how optimistic consumers are regarding their expected financial situation.

Define 'monopoly'.

A market structure where a single seller controls the entire market for a product or service.

What are 'natural resources'?

Materials or substances that occur in nature and can be used for economic gain.

Explain the term 'fiscal policy'.

The use of government spending and taxation to influence the economy.

What is 'capital', in economic terms?

Financial assets or resources used to fund the production of goods and services.

Define 'tax base'.

The total value of assets or income that can be taxed by the government.

What are 'public goods'?

Goods that are non-excludable and non-rivalrous, meaning everyone can use them.

What is 'labor market'?

The market in which workers find paying work, employers find willing workers, and wage rates are established.

Define 'trade deficit'.

When a country's imports exceed its exports, leading to negative balance of trade.

What is the responsibility of a central bank?

To oversee the monetary system for a nation, manage interest rates, and control inflation.