Review Econ Test

1. What contributed to the ancient Nile river valley high population 1. What contributed to the ancient Nile river valley high population? Explain why The high population of the Nile fresh water system allowed for population to increase near the river

2. What is subsistence agriculture 2. What is subsistence agriculture? Explain what it is and give 1 example Traditional Economy's are usually classified as subsistence farming, it is where the land usually produces only enough food or crops to feed the farmers and their families. Ex would be farmers in Most African, Asian , and Latin American countries.

3. Compare the difference between Free Market System and Command, explain which is better Free market systems is an economic system in which people own their own goods and property and encourage competition. They make profit for themselves. Command economies are run primarily by the government, usually grow food not just for themselves but in order to sell it to others for cash to meet their quotas It depends on you… usually Free Markets are more stable and survive longer

4. What has reduced famine around the world today? Explain why The introduction of Commercial Agriculture and Commercial Industries has allowed for more production of foods, which has allowed for the problem with famine in the world to reduce.

5. Define “Economic Tiger” A nickname given to the economies of Southeast Asia. Some of the tigers are Indonesia, Singapore, Malaysia, Thailand, South Korea and China.

6. Define Capital The term for how much money a business or countries has.  generally refers to financial wealth, especially that used to start or maintain a business

7. What is the Human Development Index (HDI) ? explain why it is useful Is a composite statistic of life expectancy, education, and per capita income indicators, which are used to rank countries into four tiers of human development. It is useful to see how countries today are doing overall.

8. Define Primary Economics, give an example The primary sector of the economy is the sector of an economy making direct use of natural resources. Extracting resources and direct production of food.

9. Define Secondary Economics, give an example The Manufacture and production of goods such as making of textiles and furniture is considered the second level of economic activities Ex – logs cut from wooden planks and then assembled into furniture.

10. Define Tertiary Economics, give an example Is the third level or economic activities, this deals with services this sector is identified by a variety of services performed by people Ex Host, Mechanic , teachers

Countries with advanced economics are known as More Developed nations 11. Define what is More Developed countries, give examples in what makes them “more Developed” Countries with advanced economics are known as More Developed nations For example the HDI is very high in these countries

12. Define what is Less developed countries, give examples in what makes them “less developed” Countries with weak economic systems is known as Lower Developed countries Ex – When the HDI of a country is low its due to its economy

13. What is GDP? Gross Domestic Product – is the Total value of all goods and services produced by a nation in a year.

14. Define Services When you buy services from people you are buying the skills they produce for you Ex Mechanic, Farmer, Dentist, doctor

15. Explain the importance of the Suez Canal AND the Pannama Canal The Panamma Canal has allowed for the flow of goods to increase around the world due to cutting down the route of ships going around the Americas.

16. What is a command Economy? Explain how it works An Economy run primarily by the government, government decides what needs to be produced, how much and what to sell. Ex – Soviet Russia.

17. What is a Mixed economy? Explain how it works Most countries has this economy system, this is where we blend features from other economy systems into one ex – china has a mix of free market and command

18. Define Outsourcing, give an example Outsourcing is a practice used by different companies to reduce costs by transferring portions of work to outside suppliers rather than completing it internally.