Economics Vocabulary - Latin America

Unit 3: Latin America

economics vocabulary

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Economics Vocabulary

Use this to help answer questions on page 10 of your Unit 3 INB.

You'll need a pencil and your focus to complete this activity. Are you ready?

Economics Vocabulary

Economics

Webster’s Dictionary defines economics as “a social science concerned chiefly with description and analysis of the production, distribution, and consumption of goods and services.” Our definition? Economics is a system in which people produce, sell, and buy things.

Economics vocabulary

scarcity

Scarcity is a shortage of something. There is not enough to go around for all who want the item. Doesn’t it stink when there is only one piece of apple pie left and there are three of you trying to eat it? That is scarcity.

Economics Vocabulary

Human Development Index (HDI)

The term HDI or Human Development Index is the ranking of countries based on economic indicators like literacy rate, GDP per capita, and life expectancy. **It’s like golf. The closer your ranking is to “0,” the better your ranking.** U.S. HDI Ranking: 17 out of 193 Iceland HDI Ranking: 1 out of 193

Economics Vocabulary

Gross Domestic Product per Capita (GDP per capita)

The GDP per capita or Gross Domestic Product per capita is the total value of all goods and services produced within a country in a year divided by the total population. It’s measured in dollars. The words “per capita” mean per person.

Economic vocabulary

developed

A country with a high GDP, all major types of industry, and high literacy rate.

Economic vocabulary

developing

When we use the term developing, we refer to a country that has mostly agricultural industry, lower GDP per capita, and lower literacy rates. These countries are working towards a higher economic level.

Economic Vocabulary

life expectancy

Life expectancy is defined as the number of years a person is expected to live. **Life expectancy is one factor used to determine a country’s HDI.**

Economic Vocabulary

literacy (adult literacy or education)

The term literacy rate refers to the number of adults in a country who are able to read and write. **Literacy rate is one factor used to determine a country’s HDI. We can think of literacy as evidence of education.**

What do I do on this assignment, and why is this important?

Introduction

You will be writing the definitions of economic terms that are a part of our unit of study in Latin America. (Completing page 11 of your Unit 3 INB) The reason to do this is because we will focus on economic development in the region. It helps to have background knowledge before jumping into the deeper stuff. Let’s begin.

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economics vocabulary

agriculture

farming or ranching In a primary economy, most people are involved in agricultural work.

Economics Vocabulary

cash crops

farm crop grown for money People grow crops such as cotton, sugar cane, tobacco, and tea in a primary economy.

economics Vocabulary

Triangular trade

Trade between Africa, the Americas, and Europe It involved enslaved persons, manufactured goods, and raw materials traveling across the Atlantic Ocean.

Economic Vocabulary

manufacturing

Making and assembling a product in a factory Manufacturing jobs are the main source of employment in a secondary economy.

Economics vocabulary

mercantilism

Colonizing countries needed raw materials in indigenous people's land to make products to sell. It’s meant to maximize the exports (goods sold) and minimize the imports (goods bought) of a country.

economics vocabulary

trade-free zone

Trade laws that create a region where there are less taxes when trading between countries. An example of this is NAFTA, the North American Free Trade Agreement that exists between Canada, the United States, and Mexico. Another example is Mercosur, the Common Market in South America.

Module presentation

Mercantilism Video

Put your headphones on or use closed-captions to watch this video about mercantilism.

Check out this video about mercantilism!

Can you think of any other modern day examples?

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economics Indicators Research

HDI Country Insights

Check out this website for the HDI rankings!

Research resource

CIA World Factbook

This is the website we use to research economic information about various countries in World Cultures & Geography.

Click the visual to go to the website.

What cool facts can you discover?

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Well done

Lesson completed!

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What is economics, anyway?

Economics is a social science that helps us understand how people make choices. It looks at how we produce, share, and use goods and services. Think of it as studying how our world manages its resources.