TEST #2 REVIEW SHEET CH 3 and 4 - II FORM

Test Review Sheet –Test #2 Chapters 3 and 4

Chapter3
What are the two sides to a countries economy?
Definition of Economic Development
EVERYTHING about Increasing Production
EVERYTHING Increasing Distribution
Equity - what is it, how do you increase it, why is it important?
Growth - what is it, how do you increase it, why is it important?
How does growth and equity work together?
***The cycle that we discussed on the first day. With the imaginary farm, increasing production, exporting excess, importing more, saving and investing, increasing production, etc.

Saving vs. Investing – benefits of and why it is challenging
Vicious cycle of poverty diagram
The 2 ways out of the cycle
Governments role in boosting economy
Economic Planning committee
How and Why does the Government and Private sector work in conjunction with each other?

Chapter 4

Activities that countries engage in to boost economic development

What is the importance of the activity?
Why they would want to engage in this particular activity?
How they would engage in this activity?

If you were able to answer questions like this for all 7 of the activities that we studied in chapter 4 – you would be well on your wa y to acing the test next week.
Example
Activity: Increasing Industrial Infrastructure
What? physical infrastructure is all of the things that help a country’s economy. Such as transportation systems, electric power supply, telecommunications structure and facilities for supplying water and removing waste

Why? It is important for physical capital to operate – a lot of private sector activites cannot take place if there is inadequate physical infrastructure

How? Build roads that link areas to ports, new railroads, more power lines, water pumping stations, telephone lines.