Economic Concepts and Theories

A series of flashcards covering key economic concepts and theories from the Industrial Revolution to modern economic categorization.

Industrial Revolution

Started in 1793 in Pawtucket, Rhode Island; led to major social and economic changes.

Mechanization

The process of using machinery to perform tasks traditionally done by hand.

Urbanization

The migration of people from rural areas to major population centers or cities.

Bourgeoisie

The new class of wealthy businessmen and factory owners.

Communism

A political ideology created by Karl Marx and Friedrich Engels advocating for workers to rebel against the upper classes.

Mercantilism

An economic theory emphasizing that wealth comes from exporting more than it imports.

GDP (Gross Domestic Product)

Total value of goods and services produced within a country's borders.

GNP (Gross National Product)

Measures total value of goods and services produced by a country, regardless of location.

GNI (Gross National Income)

Measures total income of a country's residents and businesses, including income from abroad.

Income Distribution

The way income is shared among the population of a country.

Per Capita

Means 'per person'.

Primary Sector

Industries focused on extraction of natural resources, such as agriculture and mining.

Secondary Sector

Manufacturing industries that transform raw materials into finished goods.

Tertiary Sector

Industries that provide services rather than goods.

Quaternary Sector

Knowledge-based industries, focusing on processing and management of information.

Quinary Sector

Involves high-level decision making and innovation.

Least-Cost Theory

Economic principle explaining the optimal location for industry based on costs.

Bulk-Gaining Industries

Industries whose finished goods weigh more after assembly.

Bulk-Reducing Industries

Industries whose finished goods weigh less after assembly.

Labor-Oriented Industry

Industries that require a large amount of labor.

Commensal Industries

Industries that locate near each other to reduce costs and increase efficiency.

Footloose Industries

Industries not restricted by transportation costs and can be situated anywhere.

Pay Gap

Wage inequality where women are often not compensated equally for their work.

Power Gap

Political inequality where women lack equal representation in government.

Longevity Gap

The difference in life expectancy between genders, typically 5-6 years with women living longer.

Education Gap

The disparity in years of schooling, particularly in least developed countries for women.

Leadership Gap

The barriers preventing women from attaining leadership positions.

Chore Gap

The trend of women disproportionately bearing family and household responsibilities.

Microloans

Small financial loans offered to individuals in developing countries, typically ranging from $100 to $25,000.

Wallerstein's World System Theory

The theory that the global economy comprises rich core countries exploiting poorer peripheral countries.

Core Countries

Highly developed, wealthy nations with strong industrial and manufacturing bases.