Wealth Flashcards
1
Q
What is an economy
A
- Status of a country’s financial ($$$, pl, businesses, trades, taxes, exports, ressources)
=> set of connected production, consumption, distribution and trade
2
Q
Goal of economy
A
Allowing people access to basic needs: maximizing efficiency of natural, human and capital resources
3
Q
Factors that impact the economy
A
- Social Norms (cultural/religious and technological/inventions)
- Politics (Ideological Clashes and Corruption)
- Natural Events (Disease and Disasters)
- Conflict (Internal/Civil and External/International)
4
Q
Types of Economy (+ examples)
A
- Free Market (little gov intervention=No taxes: Singapore and Hong Kong)
- Command (gov owns everything=total control: North Korea and Cuba)
- Mixed (mix elements=funded aspects: US, Canada)
- Traditional (Depends on agriculture, fishing, etc: Native)
5
Q
Law of Supply and Demand
A
Demand exceeds supply, price rises
Supply exceeds demand, prise drops
= need to find balance (equilibrium price) avoid overstocks or shortages
6
Q
How can a country make money?
A
- exports
- tourism
- import fees
- taxes
- business profits
- public investments
7
Q
Business Productivity
A
The amount of ressources put into a business vs the output of the business
8
Q
Regulating the exploitation of resources
A
- Adoption of Resource Use
- Preservation and Restoration Policies (standards for replenish & not exploit)
- Imposition of Sanctions (tax/law on use of something, penalty)
9
Q
Factors that Limit Wealth Creation
A
- Resource Scarcity (Natural, Human - labour, Financial)
- Limited Infrastructure (Transportation & Communication)
- Inadequate Labour Force (Health, Education, Lack of Training)
- Limited Access (Energy sources not very accessible)
10
Q
Economic Disparity Measured
A
- GDP (Gross Domestic Product): total value of goods and services produced (per capita=person)
- Gini Coefficient: Income distribution (0-1) lower = more evenly distributed
- HDI (Human Development Index): Quality of life (social & economic)
11
Q
Causes of Economic Disparity
A
- Impact of Colonialism: wealth drained to colonial investments
- Lack of Investment & Foreign Debt: stops country from investing
- Population Growth: too many people to support, lower socio-ec class
- Disease: affect lower socio-ec class - health debt
- War: focuses on war investments (lose = money lost)
- Trade Inequities: trade benefits higher socio-ec class
- Lack of Local Control: bribery, police targeting specific, business controlling economy
- Leadership Issues: capitalism, priorities are different (corruption)
12
Q
Addressing problem of wealth disparity
A
- New Fiscal Policies: adjusting gov spending & taxing
- Regulating work conditions: higher min. wage, better working conditions & more employed
- Ending economic colonialism: remove dependence on colonial power and taking $ from “colony”
- Reducing population growth: too many people
- Effective treatments for diseases
- Canceling foreign debts: allowing in-debt countries to prosper
- Giving local governments a greater voice: less corruption in small gov., more voices
- Re-examining Leadership: problematic fiscal policies (abuse of power)
13
Q
Regional Org
A
- EU (European Union): 27 cntry, formed after WII; united front (currency & war)
- ASEAN (Asctn. South-East Asian Nations): 10 cntry, formed in 1967; collaboration, trade, support, stability
- USMCA (was NAFTA); free trade agreement
14
Q
Global Org.
A
- G7: WII cntry; annually to dine solution to world problems
- WTO (Wrld Trd Org): 165 members; meet to discuss rules of trade
- World Bank: reduce poverty by lending $ to dev. countries
- IMF (Intr Monetary Fund): keep monetary system stable
15
Q
Non-Gov Organizations (NGOs)
A
- OXFAM (21 NGOS within) in 1942
- Doctor without Borders: Humanitarian medical NGO
