Chapter 11 Flashcards
What is the second stage of economic development? Explain.
Establishing conditions for takeoff. Surplus of wealth that is invested with developing nationalism and government.
What is the first stage of economic development? Explain.
Traditional society. Dictatorships and monarchies with an economy based on subsistence agriculture.
What is the 3rd stage of economic development? Explain.
Economic takeoff. Commercial agriculture with manufacturing. Expanding cities with an improving economy due to tech.
What’s the 4th stage of economic development? Explain.
Drive to maturity. Sustained growth with output growing quicker than population. Diversified economy.
What is the 5th economic development? Explain.
High mass consumption. More income that needed for survival. Increased consumption of goods and services. Society can fund social services.
What is colonialism?
The acquisition and settlement of a territory or country by another nation.
What is neo-colonialism?
Colonialism based on economic dominance. Believed to occur when poorer nations receive money to alleviate national debt.
What is a free market economy?
An economy in which prices of goods and services are determined by supply and demand.
What is a command economy?
An economy in which price and supply of goods and services are determined by the government.
What is a mixed economy?
An economic system combining elements of free enterprise and government intervention.
Why is economic liberalism?
An economic system developed by Adam smith as an alternative to mercantilism that functions without government intervention.
What is neo-liberalism?
A set of economic policies to reduce the cole of government because government control seems to impede economic growth.
What are Keynesian Economics?
Made by John Maynard Keynes saying that the government had a role to help prevent unemployment by increasing expenditures.
