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Midterm 2 study guide

Midterm 2 study guide - Section#1 Potential multiple choice...

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Section #1 - Potential multiple choice and/or true-false questions Differentiate between economic growth and economic development. economic growth - numerical increase in the production of goods and services economic development - increase in goods and services that improve the quality of life Identify the factors affecting development. Technology, Productivity, Infrastructure, Resources, Physical Environment, Culture Differentiate between Gross Domestic Product (GDP) and Gross National Product (GNP) and understand how each is derived. GDP – all production w/in a country, regardless of company’s origin; e.g. Honda plant in OH GNP – all production by a country, regardless of location; e.g. Exxon refinery in Indonesia Identify the problems associated with calculating GNP and GDP. doesn’t account for barter deal or black market currency exchange rates can change several times a year Identify two ways that GNP/GDP are normally reported and understand the characteristics of each. per capita - purchasing power parity – relative buying power in a country, esp. in poor nations Understand the characteristics of labor force profile. Understand the relationship between the percentage of the labor force engaged in primary economic activity and overall economic development. As development increases, ppl shift from primary to tertiary activities. Understand what a dual economy is and differentiate between a formal economy and an informal economy. Formal – tracked by gov’t Informal – subsistence, illegal, cash, or barter Understand the features of a quintile ratio and how it is calculated. Income % earned by top 1/5 of the population ÷ Income %earned by bottom 1/5 of the population If ratio is high, indicates huge wealth disparity. Understand the aspects of the Two-World approach to country classification. Nations are developed or undeveloped. What is the Brandt line and to what does it refer? Divides developed nations in N. Hemisphere from undeveloped nations in S. Hemisphere.
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Understand some of the relative characteristics of development between less developed (underdeveloped) and developed countries. Economic development, quality of life Understand the features of the Core-Periphery approach to country classification. Highest developed nations: core Semi-periphery least developed: periphery Understand the features of the Three-World approach to country classification. 1 st world: democratic 2 nd world: communist and command economy; tends to have high quality of life 3 rd world: unstable gov’t; lowest quality of life Identify the G-7 countries. 7 Largest economies: US, Canada, United Kingdom, France, Japan, Germany, and Italy. Identify examples of NIC's and OEC's, respectively. Newly industrialized country: Singapore, S. Korea, Taiwan, Mexico, and Brazil.
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