test two Flashcards
what are the political attitudes?
radicals, liberals, conservatives, reactionaries
what are radicals?
they believe in large institutional change
what are liberals?
they prefer change within institutions
what are conservatives?
they are skeptical of change and favor the status quo
what are reactionaries?
they seek to restore political, economic, and social institutions (real or imaginary)
what are the political ideologies?
liberalism, communism, social democracy, fascism, and anarchism
liberalism works towards
individual freedom
communism works towards
economic and social equality
social democracy works towards
balance of freedom and equality
fascism works towards
advancement of a superior group or race
anarchism works toward
elimination of state power
what is the market?
interactions between the forces of supply and demand, and the allocation of resources through these interactions
what are characteristics of private goods?
- possible to exclude others from consuming
- consumption reduces availability
- markets are effective at providing private goods
what are characteristics of public goods?
- impossible to exclude others from consuming
- consumption does not reduce availability
- markets are considered bad at providing public goods
how do states interfere in the economy?
- public expenditures
- taxation
- creating and regulating money
- regulating domestic markets
- regulating international trade
what are public expenditures?
the state’s provision of public benefits, such as education, health care, security and transportation. commonly called welfare.
what are the advantages of public expenditures?
- provides care to those who need it most
- insurance against economic downturns
what are the disadvantages of public expenditures?
- may discourage people from seeking work
- costly for governments to maintain
what is inflation?
increase in prices
how do states try to control inflation?
increased interest rates
how do states regulate international trade?
- tariffs
- quotas
- non-tariff regulatory barriers
- capital controls
what are tariffs?
a tax on a foreign good that is not applied to an otherwise similar domestic good
what is a quota?
a limit on the number of certain foreign goods that can be purchased