Understanding Economic Sectors and Disparities

Economy

The system of how money, goods, and services are produced, distributed, and used in a society.

Economic Sectors

The different areas of the economy where goods and services are produced, divided by types of activities.

Primary Sector

The part of the economy focused on natural resources, like farming, fishing, and mining.

Secondary Sector

The part of the economy that turns raw materials into products, like factories and construction.

Tertiary Sector

The part of the economy that provides services, like healthcare, education, and retail.

Quaternary Sector

The part of the economy involved in knowledge-based activities, like research, technology, and information services.

Quinary Sector

The highest level of economic decision-making, including top executives and government leaders.

Economic Disparity

The difference in wealth, income, and living standards between individuals or groups.

Poverty

The condition of not having enough money or resources to meet basic needs, like food, shelter, and healthcare.

Stages of Economic Development

The steps a country goes through as it grows economically, from low-income to high-income status.

Gini Index

A measure of income inequality within a population, ranging from 0 (equal) to 1 (high inequality).

Extreme Poverty

Living on less than a very low amount per day (often set at $1.90 by the World Bank), making it hard to survive.

Causes of Economic Disparity

Reasons for economic inequality, such as colonialism, lack of investment, population growth, disease, debt, war, corruption, trade issues, and lack of local control.

Colonialism

When one country takes control of another, often to exploit its resources and labor.

Neocolonialism

A modern form of colonialism, where powerful countries indirectly control other countries economically or politically.

Transnational Corporations

Large companies that operate in multiple countries, often impacting local economies and jobs.

GDP (Gross Domestic Product)

The total value of goods and services produced within a country in a given period.

Local-Level Economic Disparity

Income and wealth differences within a small area, like a city or community, often due to education, pay policies, or technology changes.

Education/Training (for disparity)

The availability of skills training and education affects people's job opportunities and income.

Discriminatory Pay Policies

When pay differences exist due to gender, race, or other biases, increasing economic disparity.

Technology/Automation

The use of machines and technology that can reduce jobs and income for certain workers.

National-Level Economic Disparity

Economic inequality within a country, often between different regions or social groups.

International-Level Economic Disparity

The wealth gap between countries, with rich nations having more resources than poorer ones.

Quality of Life

The general well-being of people, including factors like health, education, income, and environment.