U1 MGI Flashcards
What is Economics?
The study of how goods and services are produced, distributed and consumed.
What is Communism?
Radical form of socialism where all forms of production are owned and organized by the state in hopes of creating a classless society. Major flaws include corruption, particularly among ruling powers.
What is Socialism?
Major forms of production owned by government (education, health, some manufacturing), while most private ownership still exists.
What is a Free Market (Laissez-Faire)?
Little to no government interference in the economy. Good business succeeds, bad business fails. Prices and wages are set by markets based on supply and demand.
What is a Market Economy?
Goal of making a profit. Decisions on prices and production are made based on supply and demand from markets.
What are Mixed Economies?
Blend of free market and planned economy. Most industries are privately owned, but public utilities, infrastructure, and major industries (such as education or health care) may be operated by the state.
What are Planned Economies?
Decisions regarding production are made by the government. Production for use has replaced production for profit.
What is Regulated Capitalism?
Government sets safety standards, minimum wage, protections for workers, etc.
What is a Developing Country?
Less developed industry, lower GDP per capita, risks include unclean water, pollution, less education, and poor infrastructure.
Examples: Afghanistan, nations in Central Africa.
What is an Industrial Country?
Nation with developed industry and technological infrastructure. Industrial output remains fairly consistent.
Examples: China, Brazil, Russia.
What is a Post-Industrial Country?
Nation with a developed industry and technological infrastructure.
Examples: China, Brazil, Russia.
What is the European Union?
Economic and political alliance for free movement in Europe.
What is G7?
Wealthiest nations discussing global economic policy.
What does the IMF do?
Helps nations pay debts during financial crises.
What is NAFTA?
Trade agreement replaced by USMCA in 2018.
What is USMCA?
Revises trade agreement replacing NAFTA in 2018.
What is NATO?
Military alliance for mutual defense against Soviet aggression.
What is OPEC?
Intergovernmental organization formed to coordinate and unify petroleum policies.
