CWC GRADE * FIST TEST

Study Guide: Key Terms and Definitions for Unit 2 Mid-Unit Summative Quiz

Economic and Political Terms

• Reciprocity – A mutual exchange of goods, services, or privileges, often through trade agreements between nations.

• Exclusive Economic Zone (EEZ) – A sea zone extending up to 200 nautical miles from a country’s coast, where it has special rights over marine resources.

• GDP (Gross Domestic Product) – The total value of goods and services produced within a country over a specific time period.

• Tariffs – Taxes imposed on imported goods to protect domestic industries and generate revenue.

• Free Trade – International trade without restrictions such as tariffs or quotas.

• Imports – Goods and services purchased from other countries.

• Exports – Goods and services sold to other countries.

• Multiplier Effect – When an economic activity, such as investment or job creation, leads to increased spending and further economic growth.

• Globalization – The process by which businesses and economies become interconnected and interdependent on a global scale.

• Sovereignty – A nation’s authority and right to govern itself without external interference.

• Crown Lands – Public lands owned by the government, often used for resource development or conservation.

• Transboundary Water Bodies – Rivers, lakes, and other water resources shared by multiple countries, requiring international agreements for management.

Resources and Industries

• Ecological Overshoot – When the consumption of natural resources exceeds the Earth’s ability to regenerate them.

• Human Resources – The labor, skills, and expertise of people used in economic production.

• Natural Resources – Materials and substances such as water, forests, and minerals found in nature and used for economic gain.

• Flow Resources – Natural resources that replenish continuously, such as sunlight, wind, and water currents.

• Renewable Resources – Resources that can be replenished naturally over time, like forests and fish stocks.

• Non-Renewable Resources – Resources that do not regenerate on a human timescale, such as fossil fuels and minerals.

• Sustainable Yield Management – Managing natural resources to ensure they are not depleted faster than they can regenerate (e.g., controlled logging or fishing quotas).

• Primary Resource / Primary Industry – Industries that extract raw materials directly from nature (e.g., farming, fishing, mining).

• Secondary Industry – Industries that process raw materials into finished goods (e.g., manufacturing, construction).

• Tertiary Industry – Industries that provide services rather than goods (e.g., healthcare, retail, tourism).

• Quaternary Industry – Industries focused on knowledge-based services such as research, technology, and education.

• Importance of Transportation and Distribution – The ability to move goods efficiently affects accessibility, economic feasibility, and global trade.

• Alternative Energy Source – Non-fossil fuel energy sources, including solar, wind, hydro, and geothermal power.

• Aquaculture – The farming of fish, shellfish, and aquatic plants in controlled environments to support food production and reduce pressure on wild fish populations.