CHAPTER 8 - Economy and need fulfilment in Denmark Flashcards
What are the human needs?
Human needs can be broken down into two categories: basic needs and needs for growth and self-actualization. Basic needs include necessities such as food, water, shelter, and safety, which are necessary for survival. Needs for growth and self-actualization include things like education, creativity, a sense of community, and spiritual fulfillment, which are necessary for personal development and fulfillment beyond mere survival. These needs are often linked to quality of life and overall well-being.
How does Denmark’s economy work?
Denmark’s economy works primarily as a mixed-market economy, with Denmark having a strong welfare state system and an open economy. The country’s economy is characterized by a high degree of flexibility and competitiveness, an excellent infrastructure, and a highly educated population. Denmark also has a well-functioning labor market and a highly developed welfare system, which is supported by a comprehensive tax system that provides a high level of social security to its citizens.
What is sound economy?
A sound economy is an economy that is stable and sustainable, with low levels of inflation, steady economic growth, low levels of unemployment, and a fair distribution of income and wealth. A sound economy is one that is able to weather economic shocks and maintain its stability over the long term.
What are economic mechanisms?
Economic mechanisms are the processes and tools used by governments to manage their economies and achieve their desired goals. These mechanisms include mechanisms like fiscal policy, which involves the government’s use of taxation and expenditure policies to influence economic activity, and monetary policy, which involves the use of interest rates and other monetary tools to manage the money supply and influence economic activity. Other economic mechanisms include market supply and demand, price elasticity, and various forms of regulation.
Balance of payments
This refers to the systematic record of all economic transactions made by a country’s individuals, firms and government agencies with the rest of the world, usually over a specific time period, such as a year.
Civil society
This a broad term that refers to the range of non-governmental and not-for-profit organizations that form a critical component of democratic societies around the world.
Competitiveness
This is a term used to describe the relative ability of a firm, industry or country to produce goods and services that are of comparable quality and price to those produced elsewhere.
Contractionary fiscal policy
This is a type of fiscal policy which involves reducing government spending or increasing taxes, with the aim of reducing the overall level of demand in the economy.
Cyclical fluctuations
These are the normal fluctuations that occur in an economy around the long-term trend of growth, typically due to variations in consumer demand for goods and changes in macroeconomic policies.
Deficiency needs
These are the basic physical, psychological, and social needs that humans require in order to sustain their life and well-being.
Demand
This refers to the quantity of goods and services that consumers are willing and able to buy at a given price level.
Economic circuit
This is a process by which money circulates through the economy from households to firms and back again, as goods and services are produced and exchanged.
Economic growth
This refers to the increase in the production, consumption, and distribution of goods and services over time.
Economic reforms
These are policy measures implemented by governments with the aim of improving the performance of their economies, usually aimed at deregulation, lower taxes, and privatization.
Expansionary fiscal policy
This is a type of fiscal policy which involves increasing government spending or lowering taxes, with the aim of increasing the overall level of demand in the economy.
Exports
These are goods and services produced domestically that are sold in foreign markets.
Financial crisis
This occurs when a major disruption in financial markets and institutions severely affects the economy, causing widespread economic distress.
Fiscal policy
This refers to the use of government spending and taxation to influence the economy.
Goods
This refers to tangible items that are manufactured or produced, which people consume or use to produce other goods.
Government budget balance
This refers to the difference between government spending and tax revenues in a particular period, usually a year.
Gross domestic product (GDP):
This is the total value of all goods and services produced within a country’s borders over a given time period, usually a year.
Growth needs
These refer to the higher-level needs that individuals require for personal development, including creativity, education, and spirituality.
Imports
These are goods and services that are produced in foreign markets and sold domestically.
Income groups
This refers to a categorization of the population based on their incomes, usually ranging from low to high.
Inflation
This refers to an overall increase in prices over time, leading to a reduction in the purchasing power of money.
Market
This refers to a place where buyers and sellers come together to exchange goods and services.
Market economy
This refers to an economic system in which individual consumers and producers utilize the market mechanism to exchange goods and services with one another.
Market mechanism
This refers to the use of market prices and the profit motive to coordinate economic decision-making and allocate resources.
Mixed economy
This refers to an economic system that combines elements of a market economy and a planned economy.
Monetary policy
This refers to the use of central bank policies, such as interest rates, to influence the overall level of economic activity and inflation.
Need hierarchy
This refers to the theory of human needs developed by Maslow, which posits that people have needs that are arranged hierarchically, with basic physiological needs being at the bottom, and more complex developmental needs being higher up.
Physiological needs
These refer to the basic physical needs of human beings such as food, water, shelter, and safety.
Planned economy
This refers to an economic system in which the government controls all aspects of economic activity, including the production and distribution of goods and services.
Price formation
This refers to the way prices are set in a particular market, usually due to supply and demand.
Productivity
This refers to the amount of output that can be produced with a given amount of inputs, such as labour, capital, and technology.
Prosperity
This refers to a state in which individuals and firms are experiencing high levels of economic well-being, usually measured by indicators such as high GDP, low unemployment, and high levels of consumption.
Recession
This refers to a temporary decline in economic activity, typically marked by a decline in GDP, increased unemployment, and lower consumer confidence.
Services
These are non-tangible items that are produced and sold, including things like healthcare, education, and entertainment.
Structural policy
This refers to government policies and programs aimed at enhancing the long-term economic performance of specific industries, regions or social groups.
Supply
This refers to the amount of goods and services that producers are willing and able to offer for sale at a given price point.
Sustainable economy
This refers to an economy that is able to meet the basic needs of its people in the present, without compromising the ability of future generations to meet their own needs.
