4: Economics & Emerging Markets Flashcards
How do collectivists and individualists view rewards?
Individualistic cultures provide incentives to those individuals who seek it.
Collectivist cultures avoid uncertainties. Thus, they provide welfare for their members.
What do centrally planned economies lack, that lead to their decline?
- Quality products
- Incentives
- Customer satisfaction
- Growth
What does Guanxi mean?
Personal relationships
What are the challenges of China?
- Political and social
- Unemployment and migration
- Reunification with Taiwan
Which parts of the economic sector do mixed economies control?
- National-security
- Long term stability
What are the goals of mixed economies?
- Low unemployment and poverty
- Steady economic growth
- Equitable distribution of wealth
What are the shortcomings of a mixed economy?
- Less competition
- High tax and prices
What are the benefits of privatization?
- Increased economic efficiency
- Productivity
- Raised living standards
What are the features of a market economy?
- Free choice
- Free enterprise
- Price flexibility
What are government roles in a market economy?
- Enforce antitrust laws
- Preserve property rights
- Provide fiscal and monetary stability
- Preserve political stability
Which government body seeks to ensure competition and efficient functioning of the nation’s market?
Federal Trade Commission
What are the features of a stable economy?
Low inflation and unemployment
What are the differences between fiscal and monetary policies?
Fiscal: tax and government spending
Monetary: Control money supply and interest rates
What are metrics of economic development?
- Outputs
- Infrastructure
- People’s well-being
What is productivity?
Ratio of outputs to inputs
