Preparation for Final Exam Part 1 Flashcards
malum per se
an act that is “wrong in itself”; illegal because it violates the natural, moral or public principles of a civilized society. (Murder, rape, robbery)
malum prohibitum
“wrong due to being prohibited.” Crimes based on English Common Law which includes White Collar Crimes.
Scope of Authority
Power delegated to an agent under an agency agreement for carrying out the principal’s business or instructions
Arbitrary and Capricious
When a judge makes a decision without reasonable grounds or adequate consideration of the circumstances
Future Shock
A state of distress or disorientation due to rapid social or technological change.
Culture Shock
The feeling of disorientation experienced by someone who is suddenly subjected to an unfamiliar culture, way of life, or set of attitudes.
Maslow’s Hierarchy of Needs
Suggests five interdependent levels of basic human needs that must be satisfied.
The Five Levels of Maslow’s Hierarchy of Needs
1) Physiological Needs (to stay alive and reproduce)
2) Security (to feel safe)
3) Social Needs (For love and belonging)
4) Self-esteem (To feel worthy)
5) Self-actualization (Self-fulfillment)
Pump-Priming
The stimulation of economic activity by investment
Free Market
Economic System where prices are determined by unrestricted competition between privately owned businesses.
Absolute Advantage
The ability of an individual or group to carry out a particular economic activity more efficiently than another individual or group.
Comparative Advantage
The ability to carry out a particular economic activity more efficiently than another activity
Digital Divide
The gulf between those who have ready access to computers and the Internet, and those who do not.
Relative Poverty
In terms of the society in which an individual lives and which therefore differs between countries and over time. Living on less than X% of average US income.
Capital Goods
Goods that are used in producing other goods, rather than being bought by consumers.
Economy of Scale
A proportionate saving in costs gained by an increased level of production.
Zero-Sum Game
One person’s gain is equal to another’s loss.
Purchase Power Parity
(PPP) Estimates the amount of adjustment needed on the exchange rate between countries in order for the exchange to be equivalent to each currency’s purchasing power.
Opportunity Costs
The loss of potential gain from other alternatives when one alternative is chosen.
Trade Balance
The difference between a country’s imports and its exports. Largest component of a country’s balance of payments.
Gross Domestic Product
Total value of goods produced and services provided in a country during one year.
Per Capita GDP
Measure of GDP divided by the number of people in the Country
Desertification
The process by which fertile land becomes desert, typically as a result of drought, deforestation, or inappropriate agriculture.
Externalities
A consequence of an economic activity that is experienced by unrelated third parties. Can be positive or negative.
