Final Exam

Question 1

Natural Resources

Answer 1

materials or substances such as minerals, forests, water, and fertile land that occur in nature and can be used for economic gain.

Question 2

Renewable Resources

Answer 2

a resource which can be used repeatedly because it is replaced naturally

Question 3

Nonrenewable Resources

Answer 3

a resource of economic value that cannot be readily replaced by natural means on a level equal to its consumption.

Question 4

Fossil Fuel

Answer 4

natural fuel such as coal or gas, formed in the geological past from the remains of living organisms.

Question 5

Uses for Oil

Answer 5

• Gasoline
• Distillate fuel oil
• Hydrocarbon gas liquids
• Asphalt and road oil
• Lubricants
• Kerosene
• Wax

Question 6

Dutch Disease

Answer 6

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

Question 7

Iraq and Oil

Answer 7

• 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

Question 8

Import Substituting Industrialization (ISI)

Answer 8

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.

Question 9

Export-Oriented Industrialization (EOI)

Answer 9

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.

Question 10

Foreign Aid

Answer 10

money, food, or other resources given or lent by one country to another.

Question 11

Patronage

Answer 11

The power to control appointments to office or the right to privileges.

Question 12

Foreign Direct Investment (FDI)

Answer 12

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.

Question 13

Remittance

Answer 13

a sum of money sent, especially by mail, in payment for goods or services or as a gift.

Question 14

Clientelism

Answer 14

A social order that depends upon relations of patronage; in particular, a political approach that emphasizes or exploits such relations

Question 15

Pork Barrel

Answer 15

The use of government funds for projects designed to please voters or legislators and win votes.

Question 16

Corruption

Answer 16

Dishonest or fraudulent conduct by those in power, typically involving bribery.

Question 17

Top ten most corrupt countries

Answer 17

1. Somalia (Corruption Perception Index Score: 9)
2. South Sudan (Corruption Perception Index Score: 12)
3. Syria (Corruption Perception Index Score: 14)
4. Afghanistan (Corruption Perception Index Score: 15)
5. Yemen (Corruption Perception Index Score: 16)
6. Sudan (Corruption Perception Index Score: 16)
7. Libya (Corruption Perception Index Score: 17)
8. North Korea (Corruption Perception Index Score: 17)
9. Venezuela (Corruption Perception Index Score: 18)
10. Iraq (Corruption Perception Index Score: 18)

Question 18

Externalities

Answer 18

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.

Question 19

Nonexcludable

Answer 19

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.

Question 20

Nonrival

Answer 20

Characteristic of a public good: one actor’s consumption of the good does not diminish the quantity available for others to consume as well

Question 21

Common-pool resources

Answer 21

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.

Question 22

Overexploitation

Answer 22

Consumption of a good at a rate that is collectively undesirable, even if it is efficient from the view of any single actor.

Question 23

Chlorofluorocarbons

Answer 23

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.

Question 24

Ozone layer

Answer 24

Parts of the lower stratosphere, approximately 6 to 30 miles above the earth, with relatively high concentrations of ozone, which blocks harmful UV radiation.

Question 25

Global Climate Change

Answer 25

Human-induced change in the environment, especially from the emissions of greenhouse gases, leading to higher temperatures around the globe.

Question 26

Kyoto Protocol

Answer 26

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.

Question 27

Cap-and-trade

Answer 27

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.

Question 28

Doha Amendment

Answer 28

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

Question 29

Paris Agreement

Answer 29

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.

Question 30

Marxism

Answer 30

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.

Question 31

Socialism

Answer 31

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.

Question 32

Communism

Answer 32

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.

Question 33

Separatism

Answer 33

The desire to create an independent state on territory carved from an existing state.

Question 34

Irredentism

Answer 34

The desire to detach a region from one country and attach it to another, usually because of shared ethnic or religious ties.

Question 35

Feminism

Answer 35

The advocacy of women’s rights on the ground of the equality of the sexes.”