Final Exam Flashcards
Natural Resources
materials or substances such as minerals, forests, water, and fertile land that occur in nature and can be used for economic gain.
Renewable Resources
a resource which can be used repeatedly because it is replaced naturally
Nonrenewable Resources
a resource of economic value that cannot be readily replaced by natural means on a level equal to its consumption.
Fossil Fuel
natural fuel such as coal or gas, formed in the geological past from the remains of living organisms.
Uses for Oil
- Gasoline
- Distillate fuel oil
- Hydrocarbon gas liquids
- Asphalt and road oil
- Lubricants
- Kerosene
- Wax
Dutch Disease
the negative impact on an economy of anything that gives rise to a sharp inflow of foreign currency, such as the discovery of large oil reserves. The currency inflows lead to currency appreciation, making the country’s other products less price competitive on the export market
Iraq and Oil
- 1970s- 14% annual economic growth
- 1979- 2ndlargest oil producer in OPEC
- 1979- Oil represented 55% of Iraq’s GDP and 90% of government revenue
- Oil shocks in the late 70s and 80s
- War with Iran 1980-1988
- Invasion of Kuwait 1990
Import Substituting Industrialization (ISI)
A set of policies, pursued by most developing countries from the 1930s through the 1980s, to reduce imports and encourage domestic manufacturing, often through trade barriers, subsidies to manufacturing, and state ownership of basic industries.
Export-Oriented Industrialization (EOI)
A set of policies, originally pursued starting the late 1960s by several East Asian countries, to spur manufacturing for export, often through subsidies and incentives for export production.
Foreign Aid
money, food, or other resources given or lent by one country to another.
Patronage
The power to control appointments to office or the right to privileges.
Foreign Direct Investment (FDI)
Investments in a foreign country via the acquisition of a local facility or the establishment of a new facility. Direct investors maintain managerial control of the foreign operation.
Remittance
a sum of money sent, especially by mail, in payment for goods or services or as a gift.
Clientelism
A social order that depends upon relations of patronage; in particular, a political approach that emphasizes or exploits such relations
Pork Barrel
The use of government funds for projects designed to please voters or legislators and win votes.
Corruption
Dishonest or fraudulent conduct by those in power, typically involving bribery.
Top ten most corrupt countries
- Somalia (Corruption Perception Index Score: 9)
- South Sudan (Corruption Perception Index Score: 12)
- Syria (Corruption Perception Index Score: 14)
- Afghanistan (Corruption Perception Index Score: 15)
- Yemen (Corruption Perception Index Score: 16)
- Sudan (Corruption Perception Index Score: 16)
- Libya (Corruption Perception Index Score: 17)
- North Korea (Corruption Perception Index Score: 17)
- Venezuela (Corruption Perception Index Score: 18)
- Iraq (Corruption Perception Index Score: 18)
Externalities
Costs or benefits for stakeholders other than the actor undertaking an action. When an externality exists, the decision maker does not bear all the costs or recap all the gains from his or her action.
Nonexcludable
Characteristics of a public good: if the good is available to one actor to consume, then other actors cannot be prevented from consuming it as well.
Nonrival
Characteristic of a public good: one actor’s consumption of the good does not diminish the quantity available for others to consume as well
Common-pool resources
Goods that are available to everyone, such as open ocean fisheries; it is difficult to exclude anyone from using the common pool, but one user’s consumption reduces the amount available for others.
Overexploitation
Consumption of a good at a rate that is collectively undesirable, even if it is efficient from the view of any single actor.
Chlorofluorocarbons
Chemical compounds used in aerosols, insulation materials, refrigerator and air-conditioner coolants, and other products. CFCs are widely banned today due to their damaging effect on the ozone l a y e r.
Ozone layer
Parts of the lower stratosphere, approximately 6 to 30 miles above the earth, with relatively high concentrations of ozone, which blocks harmful UV radiation.
Global Climate Change
Human-induced change in the environment, especially from the emissions of greenhouse gases, leading to higher temperatures around the globe.
Kyoto Protocol
An amendment to the UN Framework Convention on Climate Change, adopted in 1997 and entered into force in 2005, that establishes specific targets for reducing emissions of carbon and five other greenhouse gases.
Cap-and-trade
cap-and-trade system sets limits on emissions, which are then lowered over time to reduce pollutants released into the atmosphere. Firms can sell “credits” when they emit less than their allocation or must buy from others when they emit more than their allocation.
Doha Amendment
The United Nations is encouraging governments to ratify as soon as they can the amendments relating to the second commitment period of the Kyoto Protocol, the international emissions reduction treaty. Ratification of the Doha Amendment to the Kyoto Protocol is a valuable part of the momentum for global climate action for the years leading up to 2020
Paris Agreement
The Paris Agreement builds upon the Convention andfor the first time brings all nations into a common cause to undertakeambitious efforts to combat climate change and adapt to its effects, with enhanced support to assist developing countries to do so.
Marxism
is a branch of socialism, a theory that holds that the more powerful classes oppress and exploit the less powerful by denying them their fair share of the surplus they create.
Socialism
a political and economic theory of social organization that advocates that the means of production, distribution, and exchange should be owned or regulated by the community as a whole.
Communism
a political theory derived from Karl Marx, advocating class war and leading to a society in which all property is publicly owned and each person works and is paid according to their abilities and needs.
Separatism
The desire to create an independent state on territory carved from an existing state.
Irredentism
The desire to detach a region from one country and attach it to another, usually because of shared ethnic or religious ties.
Feminism
The advocacy of women’s rights on the ground of the equality of the sexes.”
