Political and Economic Test Review
1. Define unequal distribution of resources (p. 323). How does the world deal with unequal resources?
Regions and countries have different natural resources, human resources, capital resources, and entrepreneurship.
Countries specialize in producing those goods and services that they make the best, based on the available resources. To
obtain other products, countries exchange the goods they make with other countries through trade.
2. Define Standard of Living (Unit 6 voc list)
The level of wealth, comfort, material goods and luxuries available to a certain socioeconomic class in a certain
geographic area
3. Define free enterprise (also known as capitalism or the free market system) (p.288)
A system where the government has minimal ownership of enterprises in the market place and aims for limited
restrictions on trade and government intervention. Prices are set by supply and demand and people invest (risk) their
money in order to make a profit. People freely produce and buy what they want.
4. Define supply and demand (p.288)- Supply refers to how much of a good producers are willing to make and sell.
Demand refers to how much of a good consumers are willing to buy. When the demand for a good is high, the price goes
up. If the supply is high but demand is low, the price goes down.
5. Define Human Development Index or HDI p.293 - The United Nations developed an index to rank countries based on
their level of economic development.
a. Demographic indicators: 293 - a. Demographic data (size of population, birth rate, infant mortality rate)
b. Economic Indicators: 294 - Economic Data (GDP – total of goods and services made in a nation in one year and GDP
per capita – GDP per person)
c. Social Indicators: 294 - Social Data (Literacy rate)
d. Political Indicators: 295
*Freedoms people enjoy
*Degree of democracy and voting rights
*Level of human rights
*Degree of government oppression
*Tolerance for different points of view
A more developed nation has a/an: (boxes on pages 294-295)

Low birth rate

Low infant mortality rate

Low mortality rate

Long life expectancy

High G.D.P. per capita income

High literacy rate

Higher standard of living

Highly industrialized
A less developed nation has a/an: (boxes on pages 294-295)

High birth rate

High infant mortality rate

High mortality rate

Short life expectancy

Low G.D.P. per capita income

Agricultural activities instead of high tech activities

Lower literacy rates
A newly industrialized nation has a/an: (Teacher will help you with this)

Economy that falls between a less developed nation and a more developed nation

Economy that is moving away from an agriculture to manufacturing

A migration of workers from rural to urban areas
6. Study India's population pyramid. What factors have slowed India’s economic development? (Teacher will help)
1. Rapid growth of India’s youth, age 30 and below, due to low infant mortality rate
2. Not enough jobs for the youth groups, age 30 and below
3. High unemployment causes slow economic growth and economic development
7. Define Communist Economy (also known as command economy) p.282 - All major decisions on production,
distribution and the use of resources are made by government planners. Government owns all land, factories, farms and
major resources. Workers labor together and are supposed to share equally in the fruits of their labor. Private property
ownership is abolished (not allowed). The goal is to achieve a classless society (equality among all workers)
8. Define Capitalism (Free Enterprise, Market Economy)) p. 280
Economic system in which people own their own goods and property
9. Define Socialist economy (mixed economy) p.283- Government owns major industries. Private ownership of smaller
businesses is allowed. Government provides low-cost or free public services such as schools, health care, etc.
10. Define Traditional economy p.279- Economic decisions are made on the basis of customs and beliefs handed down
from one generation to another. Traditional economies are primarily agricultural. New ideas are discouraged. People
hunt for food or grow it themselves. (Subsistence farming)
11. Define subsistence farming p.279 – Farmers grow just enough food to feed their own families
12. Define cottage industries p.280 – Goods like textiles are produced in private homes by hand, usually by the entire
family
For questions 13-16, write the definition, provide jobs associated with each level and a connection with development
from pages 297-298
13. Primary economy– Involve the production of foods and the extraction of resources. The larger the portion of people
involved in primary activities, the greater the likelihood the country’s economy is LESS developed. EX: mining, fishing,
growing crops
14. Secondary economy – The manufacturing and production of goods. Secondary economic activities add value to raw
materials by processing them or changing their form. EX: logs are cut into planks and made into furniture
(manufacturing)
15. Tertiary economy – Deal with services performed by people and businesses. EX: teacher, nurse, accountant,
musician
16. Quaternary economy – Involving information processing and management. EX: computer programmer, manager of
a company.
The larger the portion of people involved in quaternary activities, the greater the likelihood the country’s economy is
MORE developed.
17. Define absolute monarchy p.229 - a ruler who governs alone and is not restrained by laws, a constitution, or
custom
18. Define dictatorship p.230-231- system of government in which one person or party has total power over
others
19. Define Theocracy p.232 - a system of government controlled by a religious leader
20. Define Democracy p.230 - a system of government in which the people decide who will govern. In direct
democracy citizens decide directly by voting. In representative democracy people elect representatives to
decide issues
21. Define Constitutional Monarchy p.229 - Power is shared with a legislature and monarch serves as a symbolic
head of state
22. Define Totalitarian Government p.231 - a dictatorship with complete control over all aspects of life
23. Define Culture p.123– refers to a people’s way of life, including language, religion, beliefs, customs, institutions and
technology
24. Define Cultural Divergence p.190– Happens when different parts of a cultural region are exposed to different
influences and become dissimilar and when different cultural influences cause an area to divide into separate parts
25. What are the major beliefs in Buddhism p.126 – Self denial and meditation. No god, no holy book.

4 noble truth’s – explain life’s meaning

Eightfold Path – give up selfish desires.
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Nirvana
26. What is Nirvana? (p.126) – In Buddhism a person can achieve final reincarnation and eternal bliss by following the
Eightfold Path
27. What are the major beliefs in Hinduism? (p.126)

Belief in many gods.

Reincarnation – Soul is reborn as another thing.

Karma and the Caste System – The better behavior you have in life, the higher Caste (level) you will have in
your next life.
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Ganges River and Cow’s are sacred. Hindu’s do not eat beef.
28. List the Five Pillars of Faith of Islam (p.128) – In Islam the basic religious duties that Muslims must fulfill are:

There is no other God but Allah

Pray five times a day facing Mecca

Must give money to the poor
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Fast during the holy month of Ramadan
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Must make pilgrimage (trip) to Mecca
29. What are the key features of Judaism? (p.127)

Monotheism – One god

Ten Commandments

Old Testament of the Bible
30. What are the major beliefs of Christianity? (p.128)

Jesus was the son of God. Sent to save humans.
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Faith in god and Jesus. Love and Respect for others.

The Bible – Old and New Testament.