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25 Cards in this Set
- Front
- Back
political economy
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The study of how politics and economics are related and how their relationship shapes the balance of freedom and equality
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markets
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the interaction between the forces of supply and demand, and they allocate resources through the process of that interaction.
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property
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Refers to the ownership of goods and services
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property right
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The right to buy and sell property or the right not to have it taken away by the state or other citizens without a good reason (just cause) and compensation.
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public goods
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Goods that are provided or secured by the state, available for society and indivisible (no one private person or organization can own them)
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social expenditures (welfare)
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The state's provision of public benefits, such as education, health care, and transportation, or what is called "welfare" or the "welfare state"
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taxation
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The means by which the state collects the funds to pay for public goods and services--- which, in the end, benefit the public directly.
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central bank
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An institution that controls how much money is flowing through the economy, as well as how much it costs to borrow money in that economy.
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inflation
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When prices begin to rise and money loses its values.
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unemployment
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Having no jobs due to economic problems like inflation.
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regulation
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Rules or orders that set the boundaries of a given procedure.
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monopoly
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A single producer of a good or service that is able to dominate the market.
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trade
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The act or process of buying, selling, or exchanging commodities, at either wholesale or retail, within a country or between countries.
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tariffs
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Taxes on imported goods.
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quotas
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A nontariff that limits the quantity of a good that may be imported into a country
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comparative advantage
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The ability to produce a particular good or service more efficiently relative to other countries' efficiency in producing the same good or service.
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capitalism
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A system of production based on private ownership and free markets.
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laissez-faire
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Holds that the economy should be "allowed to do" what it wishes.
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parastatals
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Partial or full state ownership of specific industries.
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gross domestic product (GDP)
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Total market value of all goods and services produced within a country over a period of one year.
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gross national product (GNP)
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Both production and the flow of the wealth into and out of a country, with attention to national versus foreign ownership
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purchasing-power parity (PPP)
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Attempts to estimate the buying power of income in each country by comparing similar costs, such as food and housing, using prices in the United States as a benchmark.
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gini index
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A statistical formula that measures the amount of inequality in a society; its scale ranges from 0 to 100, where 0 corresponds to perfect equality and 100 to perfect inequality.
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human development index
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A statistical tool that attempts to evaluate the overall wealth, health, and knowledge of a country's people.
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economic liberalization
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Changes in the areas that limit the power of the state over that of private property and market forces.
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