Chapter 4 Concepts

Question 1

A system of production based on private property and free trade

many western nations are this type of system.

Answer 1

Capitalism

Question 2

The state institution that controls how much money is flowing through the economy as well as how much it costs to borrow money in that economy

Answer 2

Central Bank

Question 3

The ability of one country to produce a particular good or service more efficiently relative to to other countries’ efficiency in producing the same goods or services.

Answer 3

Comparative Advantage

Question 4

A period of falling prices and values for goods, services, investments, and wages

Answer 4

Deflation

Question 5

Changes consistent with liberalism that aim to limit the power of the state and increase the power of the market and private property in an economy

Answer 5

Economic Liberalization

Question 6

A statistical formula the measures the amount of inequality in a society; its scale ranges from zero to 100, where zero corresponds to perfect equality and 100 to perfect inequality

Answer 6

Gini Index

Question 7

The total market value of all goods and services produced by a country over a period of one year

Answer 7

GDP
( Gross Domestic Product )

Question 8

A statistical tool that attempts to evaluate the overall wealth, health, and knowledge of a country’s people.

Answer 8

Human Development Index
(HDI )

Question 9

Inflation of more than 50 percent a month for more than two months in a now

Answer 9

Hyperinflation

Question 10

An outstripping of supply by demand, resulting in an increase in the general price level of goods and services and a consequent loss of value in a country’s currency

the economy may also become more difficult to participate in

Answer 10

Inflation

Question 11

The principle that the economy should be “allowed to do” what it wishes; a liberal system of minimal state interference in the economy

Answer 11

Laissez - faire

Question 12

The interaction between the forces of supply and demand that allocates resources

Answer 12

Market

Question 13

A political - economic system in which national economic power is paramount and the domestic economy is viewed as an instrument that exists primarily to serve the needs of the state

Answer 13

Mercantilism

Question 14

A single producer that is able to dominate the market for a good or service without effective competition

Its also a famous board game that you’ve probably tried to cheat at before

Answer 14

Monopoly

Question 15

Policies and regulations used to limit imports through methods other than taxation

Answer 15

Nontariff Regulatory Barriers

Question 16

Industry partially owned by the state

think about it like federalism ( balance between the two )

Answer 16

Parastatal

Question 17

The relationship between political and economic institutions in a particular country and the policies and outcomes they create

Answer 17

Political - Economic System

Question 18

The study of the interactions between state and the market

Don’t overthink it please.

Answer 18

Political Economy

Question 19

Goods or services that are owned by an individual or group, privately or publicly

Answer 19

Property

Question 20

Goods, provided or secured by the state, available to society, and which no private person or organization can own

A common ideal or goal also within Communism…

Answer 20

Public goods/Property

Question 21

A statistical tool that attempts to estimate the buying power of income across different countries by using prices in the United States as a benchmark

Answer 21

Purchasing Power Parity (PPP)

Question 22

A nontariff barrier that limits the quantity of a good that may be imported into a country

Answer 22

Quota

Question 23

A rule or an order that sets the boundaries of a given procedure

Yall its literally another word for a rule don’t over think this one

Answer 23

Regulation

Question 24

State provisions of public benefits, such as education, health care, and transportation

Answer 24

Social Expenditures

Question 25

A tax on Imported goods

there not sanctions but the U.S and other western countries put these on Russia when they invaded Ukraine.

Answer 25

Tariffs