Topic 3 Flashcards
What was the main focus of topic three
Sustainable prosperity
What was les a fair
It was an economic policy telling the government to take its hands off of the economy.
What is protectionism
It is when the government tries to decrease the purchase of imported goods by placing tariffs on those items or taking other measures
What is communism
It is when resources are shared equally
what is inflation
Inflation is what occurs when more money is printed it is when the value of your money goes down.
What is free trade
it is when there are no barriers in place on imports or exports in countries put simply it allows countries to import and export to each other without extra cost
Who does and doesn’t benefit from free trade
Developed countries benefit and developing countries don’t`
What happened to the economy that caused les a fair to be ineffective
The economy spiked to much and then crashed bringing everyone to debt as no one had money to spend shops went out of business making those business owners bankrupt.
How did they fix the economic recession
The government got involved and created jobs for people to get money flowing again.
What is the world bank
International organization made after the second world war with the purpose of financing long term loans and addressing poverty through economic development
What is the IMF
The International Monetary Fund is an international organization made after the second world war with the purpose of financing short term loans and currency stability
What are structural adjustments
Adjustments required by IMF to pay off debts
What are Keynesian economics
It is when governments stabilize the booms and recessions by increasing taxes during booms and using the tax money during recessions as well as lowering taxes
What is mercantilism
It is the economic system used in the 16-18th centuries
What is a Maquiladora
A subsidiary factory in mexico
