Chapter 4 Flashcards
What is the terms “markets”?
Interactions between the forces of supply and demand
What is the term “property”?
The ownership of goods and services exchanged through markets
What is the term “public goods”?
Goods provided or secured by the state that are available for society and individuals (no one private person or organization can own them).
What is the “central bank”?
An institution that controls how much money is flowing through the economy as well as how much it costs to borrow money in the economy
What are “tariffs”?
Taxes on imported goods
What are “quotas”?
A limit on the quantity of certain goods coming into the country
What is the term “comparative advantage”?
The ability to produce a particular good or service relatively more efficiently than other countries
What is a “political-economic system”?
The actual relationship between political and economic institutions in a particular country, as well as policies and outcomes they create
What is the “purchasing power parity (PPP)”?
A way to calculate gross domestic product (GDP) that takes the cost of living and buying power into account
What is the “Gini Index”?
Assesses inequality
What is the “Human Development Index (HDI)”?
Assesses health, education, and wealth of population
What is the term “economic liberalization”?
Changed consistent with liberalism that aim to limit the power of the state and increase the power of the market and private property in the economy
