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Quick Review

1 .       An MDC is also known as a relatively developed country. 

 
 


2 .       Your text has divided the world into nine major regions and two areas based on dominant languages, religions, and cultural and demographic characteristics. 

 
 


3 .       Anglo-America's relative homogeneity reduces the possibility that a large minority will be excluded from participating in the region's economy on the basis of cultural characteristics. 

 
 


4 .       Anglo-America produces more manufactured goods than services. 

 
 


5 .       The gross domestic product (GDP) is the value of the total output of goods and services produced in a country, normally during one year. 

 
 


6 .       Dividing the GDP by total population measures the contribution the average individual makes to generate a country's wealth in a year. 

 
 


7 .       Per capita GDP measures distribution of wealth. 

 
 


8 .       The primary sector of an economy involves the mining of the earth's resources, including food production (agriculture and fishing) and forestry. 

 
 


9 .       The secondary sector includes the transformation of raw materials into useful products. 

 
 


10 .       The tertiary sector involves services in exchange for payment. 

 
 


11 .       A high percentage of agricultural workers in a country indicate that most of its people are spending their days producing food for export. 

 
 


12 .       Productivity is the value of a particular product compared to the amount of raw materials needed to produce it. [Hint]

 
 


13 .       The value added in manufacturing is the gross value of the product minus the costs of raw materials and energy. 

 
 


14 .       As a result of greater exposure to cultural diversity, people in developed countries display different social characteristics from people in LDCs. 

 
 


15 .       Using this map, India has the same student-teacher ratio as does Sri Lanka. [Hint]

 
 


16 .       This map indicates that Ecuador has the same percent of labor force engaged in agricultural activities as does Turkey. 

 
 


17 .       Literacy rate is the percentage of a country's people who can read only. 

 
 


18 .       Under self-sufficiency, incomes in the countryside keep pace with those in the city, and reducing poverty takes precedence over encouraging a few people to become wealthy consumers. 

 
 


19 .       Two problems with the self-sufficiency alternative are inefficiency and lack of choice. [Hint]

 
 


20 .       According to Rostow, a traditional society defines a country that has started a process of development. 

 
 


21 .       Under Rostow's international trade model, the process of development begins when the country starts to invest in new technology and infrastructure. 

 
 


22 .       Most LDCs converted from self-sufficiency to the international trade model during the 1990s. 

 
 


23 .       Financing for LDCs primarily comes from two sources: loans from banks and international organizations, and direct investment from governments. 

 
 


24 .       Loans outstanding to LDCs (and provided by MDCs) was about $2.1 trillion in 1996, an increase of about $1 trillion in a decade. 

 
 


25 .       The World Bank has judged half of the projects it has funded in Africa to be failures. 

 
 


26 .       Transnational corporations (often referred to as multinational corporations), once popular only with the United States, are now found in other MDCs. 

 
 






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