1. Review Econ Test

2. 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

3. 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.

4. 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

5. 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.

6. 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.

7. 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

8. 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.

9. 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.

10. 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.

11. 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

12. 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

13. 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

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

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

16. 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.

17. 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.

18. 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

19. 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.