F1

Question 1

90/10 ratio

Answer 1

economic difference in country

Wage earned by individuals in 90th percentile compared to in 10th percentile

Question 2

disposable income

Answer 2

all economical input to individual - all output
measure living standard
max amount person can but without lending

Question 3

What does disposable income exclude?

Answer 3

social and physical environment
free time
goods and services don’t need to pay for

Question 4

nominal GDP

Answer 4

gross domestic product

sum of all goods and services (price*quantity)

Question 5

real GDP

Answer 5

nominal GDP/base year

to compare

Question 6

PPP

purchasing power parity

Answer 6

GDP per capita in common set of prices

Question 7

characteristics of international economic orders (flows)

Answer 7

goods
financial
people
knowledge
microbes

Question 8

aspects to interpret economic flows

Answer 8

economic relationship and dependence between regions and countries
institutional framework
patterns of growth and stagnation
income gaps

Question 9

before 1800

Answer 9

good potential for China and Europe but Europa developed better because of:
Europe needed extension and therefore had contact with other countries
Europe had animal power
Politically Europe was fighting within more and developed science more

Question 10

1500-1820

growing network

Answer 10

plundering or trade
colonies
England in good position because of connections and good domestic economy, industralization and importation of cotton
Slave trade and slaves

Question 11

1820-1870

pax britannia

Answer 11

England dominating through surface, military and financially
railways
migration who became “workers”
bigger cities or farming

Question 12

1870-1913 free trade imperialism

Answer 12

South Africa important economical and political
native population from holland was fought and Britain won
later gave independency but rasism was the consequence

Question 13

1913-1950

war and crisis

Answer 13

revolution in military weapon
low connection between countries
reduced trade
no financial system
limited migration
fast technological development

Question 14

1950-1973

Answer 14

global economical growth and international trade
power is moved and divided (decolonization, asian growth)
catch up effect
flow of knowledge
limited financial flows

Question 15

1973->

Answer 15

OPEC
growing income gaps
trade and global production chain
brands
consumption pattern

Question 16

capitalism

Answer 16

economic system
combination of institutions
way of organizing production and distribution of goods and services in entire economy

Question 17

essentials in capitalism

Answer 17

private property
(enjoy, exclude, dispose, own)
Markets (connecting people with mutual benefit)
firms (capital goods, wage, direction, sell and profit)