Chapter 4 Concepts Flashcards
A system of production based on private property and free trade
many western nations are this type of system.
Capitalism
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
Central Bank
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.
Comparative Advantage
A period of falling prices and values for goods, services, investments, and wages
Deflation
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
Economic Liberalization
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
Gini Index
The total market value of all goods and services produced by a country over a period of one year
GDP
( Gross Domestic Product )
A statistical tool that attempts to evaluate the overall wealth, health, and knowledge of a country’s people.
Human Development Index
(HDI )
Inflation of more than 50 percent a month for more than two months in a now
Hyperinflation
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
Inflation
The principle that the economy should be “allowed to do” what it wishes; a liberal system of minimal state interference in the economy
Laissez - faire
The interaction between the forces of supply and demand that allocates resources
Market
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
Mercantilism
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
Monopoly
Policies and regulations used to limit imports through methods other than taxation
Nontariff Regulatory Barriers
Industry partially owned by the state
think about it like federalism ( balance between the two )
Parastatal
The relationship between political and economic institutions in a particular country and the policies and outcomes they create
Political - Economic System
The study of the interactions between state and the market
Don’t overthink it please.
Political Economy
Goods or services that are owned by an individual or group, privately or publicly
Property
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…
Public goods/Property
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
Purchasing Power Parity (PPP)
A nontariff barrier that limits the quantity of a good that may be imported into a country
Quota
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
Regulation
State provisions of public benefits, such as education, health care, and transportation
Social Expenditures
A tax on Imported goods
there not sanctions but the U.S and other western countries put these on Russia when they invaded Ukraine.
Tariffs
