Term
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Definition
| Tradition, Market, Command, Mixed |
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Term
| Karl Marx & Communist Manifesto |
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Definition
Wrote it; Outlined the theories of Communism
(Economic Factors) |
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Term
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Definition
* Lenin Made Russia first communist nation, established war communism
* Stalin succeeded Lenin and severly punished workers for not following Five Year Plan |
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Term
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Definition
| Gorbachev: Introduced reform policies (perestroika) to move towards a market economy |
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Term
| Mao, Great Leap, Cultural Revolution |
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Definition
| Brought Communism to China in 1949 / focused on steel and heavy industries / violent movement established after failure of Great Leap Forward |
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Term
| Xiaoping & Four Modernizations |
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Definition
(1976)
1. Agriculture
2. Industry
3. Science & Technology
4. Defense |
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Term
| Xiaoping & Special Economic Zones |
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Definition
| Created regions that have economic laws that are different from a country's usual economic laws to increase foreign investment. |
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Term
| Tiananmen Square Massacre |
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Definition
| Attack on protestors in the Square in 1989, Killing hundreds |
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Term
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Definition
| 15% of world (U.S., Canada, western Europe, Japan, South Korea, Australia, New Zealand) |
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Term
| Characteristics of developed nations |
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Definition
*High Level of Industry
*High Level of Technical Expertise
*Variety of Economic Institutions
*High Energy Use
*High Per Capita GDP |
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Term
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Definition
85% of World /
*Limited Resources/Arable Land (productive Land)
*Rapid Pop. Growth rate
*Predominantly an Agricultural - Subsistance (just enough to survive)
*Low Human Capital, "Brain Drain" (Knowledge Leaves Country)
*Low Per Person GDP |
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Term
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Definition
| Nations that have moved or are moving from a command to market or mixed. (China, Russia...etc.) |
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Term
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Definition
| Average Annual Income of individuals in a given country |
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Term
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Definition
| The percentage of a nations population that can read and write in their native language |
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Term
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Definition
| The number of deaths from birth of infants per year for every certain amount of people. |
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Term
| Reasons for giving foreign aid |
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Definition
| Humanitarianism, Economics, Political, Military |
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Term
| International Aid Organizations (3) |
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Definition
World Band: Largest, Loans and Contributions
UNDP:Grants, eliminate poverty
IMF: Debt rescheduling & stabalization program |
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Term
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Definition
| Countries produce certain goods (determined by resources) |
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Term
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Definition
| Developed the theories of absolute & Comparative advantage |
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Term
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Definition
| When a nation can produce more than a trading partner |
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Term
| Law of Comparative Advantage |
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Definition
| The ability to produce at a lower opportunity cost |
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Term
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Definition
| Exports: sold to other countries/ Imports: Bought from other countries |
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Term
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Definition
| Laws passed to limit free trade among nations |
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Term
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Definition
Quotas: limit to the number of goods brought in
Tariff: Tax on an import
Embargo: Complete ban on trade, usually political reasons |
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Term
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Definition
| Succession of increasing trade barriers between nations |
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Term
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Definition
| the use of trade barriers between nations to protect domestic industries |
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Term
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Definition
| new industries that are often unable to compete against larger, more established competitors |
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Term
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Definition
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Term
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Definition
| they import more than they export |
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Term
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Definition
| They import more than they import |
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Term
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Definition
| EU : Most advanced trade agreement, has own bank, flag, and currency |
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Term
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Definition
| North American Free Trade Association: U.S., Canada, Mexico, largest free trade zone in the world |
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Term
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Definition
| a group that adhere to the policies of the General Agreement on Tariffs and Trade |
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Term
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Definition
| Large corporations that manufacture & Sell throughout the world |
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Term
| Positive statements/Economics |
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Definition
| A way of describing and explaining economics as it is |
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Term
| Normative Statements/Economics |
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Definition
| A way of describing and explaining what economics behavior ought to be, not what it actually is. |
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Term
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Definition
| a situation that exists when there are not enough resources to meet human wants. |
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Term
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Definition
| the value of something that is given up by choosing one alternative over another |
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Term
| Production Possibilities Curve |
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Definition
| a graph used to illustrate the impact of scarcity on an economy |
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Term
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Definition
- When price rises, quantity demanded falls
• Ceteris Paribus
- When price Falls, Quantity demanded rises. |
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Term
| Related goods demand determinant (subs & comps) |
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Definition
PB & J:
If Price of one rises, demand for the other decreases
If price of one falls, the demand for the other increases
Coke and Pepsi:
If price of one rises, demand for other increases.
If price of on falls, demand for other decreases. |
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Term
| Elasticity of demand (definition & formulas) |
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Definition
a. Responsiveness by consumers
b. It measures the % change in quantity demanded that results from a % change in price |
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Term
| Price Floor (def, graph, examples) |
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Definition
| Minimum legal, price helps producers…ex. Agriculture) |
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Term
| Price ceiling (def, graph, examples) |
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Definition
| Max Legal Price, helps consumer… ex. Rent controls, WWII) |
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Term
| Perfect Competition (characteristics) |
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Definition
i. Many buyers & Sellers
ii. Identical product (perfect Substitutes)
iii. Perfectly informed buyers/sellers
iv. Free entry & exit
v. Independent buyers & sellers, no control over price |
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Term
| Pure Monopoly (characteristics) |
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Definition
i. Single seller
ii. Unique product, no close substitutes
iii. Barriers to entry (restricted/regulated)
iv. Complete control over price |
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Term
| Oligopoly (characteristics) |
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Definition
i. Few Sellers
1. (2-4 largest control over 70%)
ii. Standardized or differentiated
iii. Barriers to entry
1. Cost
iv. Some price control |
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Term
| Monopolistic competition (characteristics) |
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Definition
i. Many firms
ii. Differentiated product
iii. Few Barriers
iv. Slight price control |
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Term
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Definition
| the joining of companies that offer the same or similar products or services |
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Term
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Definition
| the combining of companies involved in different steps of production or marketing of a product or service |
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Term
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Definition
| Something worth and used to pay |
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Term
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Definition
| • Has value based on what it is made of |
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Term
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Definition
| • Money that can be exchanged for something else of value |
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Term
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Definition
| • Has value only because the government has issued a Fiat, or order, saying this. |
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Term
| Fractional Reserve Banking |
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Definition
• A system of banking that requires banks to hold a fraction of a deposit; the bank may loan out the rest.
• The fraction that must be held is called the Required Reserve Ratio (RRR) |
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Term
| GDP (def. with 3 requirements) |
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Definition
| • Total market ($) value of all final goods and services produced within a nation’s borders in a given time period. |
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Term
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Definition
| • Changes in a market's economic system |
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Term
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Definition
a. Temporary, people changing jobs
b. Normal process of jobs being created and destroyed |
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Term
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Definition
| a. Linked to seasonal work |
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Term
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Definition
a. Jobs do not match up well with the skills of those looking for work
b. Usually due to technology |
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Term
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Definition
a. Caused by a part of the business cycle
b. Follows economy |
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Term
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Definition
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Term
| Fiscal Policy and two tools |
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Definition
- When the federal government changes taxes and government spending to affect the economy.
- Expansionary & Contractionary Fiscal Policy's |
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Term
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Definition
When the Fed changes the Money Supply to influence the economy
Tools:
1. Buying and selling bonds
2. Reserve Requirement (RRR)
3. Interest Rates |
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