Principles 8-10 Vocabulary Flashcards
Principle 8
Developed Nation
Wealthy country w/ advanced industries.
ex: USA, Japan
Principle 8
Developing Nation
Country improving economically.
ex: India, Brazil
Principle 8
Standard of living
Quality of life measurement.
ex: Access to education, healthcare
Principle 8
Quality of life
Overall well-being and satisfaction.
ex: Happiness, satisfaction
Principle 8
GDP (Gross Domestic Product)
Total economic output.
Total value of goods and services
Principle 8
Per capita
Per person measurement.
GDP divided by population
Principle 8
Productivity
Efficiency of production.
ex: Output per worker per hour
Principle 8
Paradox of Plenty
Rich in resources but poor.
Nigeria (rich in oil, but high poverty)
Principle 8
Poverty
Lack of basic necessities.
ex: Lack of food, shelter
Principle 8
Inequality
Economic gap between people.
Ex: Income gap between rich and poor
Principle 8
Social mobility
Ability to move up economically.
ex: Moving from lower to higher class
Principle 8
Vertical mobility
Changing social classes.
ex: A factory worker becoming a manager
Principle 8
Globalization
Worldwide integration (combing one thing w/ others)
ex: Trade between nations
Principle 8
Free trade
No restrictions on imports/exports.
Ex: Importing goods without tariffs
Principle 8
Outsourcing
Contracting work to external parties.
Ex: Hiring workers overseas (another country) for customer service
Principle 9/10
Inflation and Unemployment
Prices rise and job unavailability.
(e.g., 1970s oil crisis)
Principle 9/10
Fractional reserve banking
Banks keep fraction of deposits.
(e.g., U.S. banks)
Principle 9/10
Inflation
General increase in prices.
(e.g., rising gas prices)
Principle 9/10
Purchasing power
Ability to buy goods w/ inflation
(e.g., wage increase)
Principle 9/10
Money Supply
Total money available
Principle 9/10
Monetary policy
(what does it have to do with money supply?)
Control of money supply.
(e.g., interest rate changes)
Principle 9/10
Federal Reserve (The Fed.)
Central bank of USA
(e.g., Janet Yellen)
Principle 9/10
Interest rates
Cost of borrowing money
(e.g., mortgage rates)
Principle 9/10
Unemployment
People without jobs.
(e.g., recession layoffs)
