The Political Economy Flashcards
economic activity that occurs illegally in spite of regulations and controls imposed by the state
Black Market
the property-owning middle class that came to wealth and political power during the Industrial Revolution
Bourgeoisie
a state institution charged with managing the country’s money supply, usually in order to prevent inflation and promote employment
Central Bank
a political ideology asserting that liberty and equality can be achieved only through fundamental economic equality of all people via state ownership of private property
Communism
Vladimir Lenin’s model of making political decisions centrally within the inner party elite, though ostensibly for the benefit of the majority of people
Democratic centralism
a theory asserting that former colonies were made to be dependent on their colonial masters and that economic development of the former colonies would require self-sufficiency in a manufacturing and industry through a public-policy program of trade restrictions
Dependency theory
sovereign states with a high standard of living and advanced technological structure
Developed countries
sovereign states in various states of achieving economic advancement that have lower standards of living than developed countries
Developing countries or Less Developed Countries (LDCs)
providing all citizens with basic equal minimums in their standard of living through welfare-state policies
Economic equality
allowing citizens and private institutions to freely choose what to do with their private property and income without state interference
Economic freedom
a measure of how many people live below a certain income level for whom day-today life and survival are thus difficult and tenuous
Economic poverty
international trade left to its natural course on the basis of market forces without state barriers, such as tariffs, quotas, and other restrictions
Free trade
Gross Domestic Product expressed on a per person basis; used as a typical standard of living
GDP per capita
a measure of economic inequality
Gini Index
the total dollar value of all goods and services produced within a country’s borders
Gross Domestic Product (GDP)
in international trade, a limitation on the amount of a particular product that may be imported
Import quota
a general rise in the levels of prices in an economy
Inflation
an economic ideology and policies that seek control or restrain market forces for the purpose of providing more economic equality and economic security
Left
a political ideology that prioritizes liberty and equal protection of all individuals under the law as its central goals
Liberalism
the part of economics concerned with large-scale or general economic factors, such as interest rates and national productivity
Macroeconomics
any setting in which supply and demand interact with one another to determine prices and distribution of goods or services
Market
an economic policy designed to maximize the state’s profit from trade
Mercantilism
the part of economics concerned with single factors and the effects of individual economic decisions
Microeconomics
an item or record used for payment of goods and services and for storing and measuring value
Money
