History Chapter 26

Front 1

The Basic problem in Economics

Back 1

Scarcity

Front 2

Exported

Back 2

Sold to other countris

Front 3

Imported

Back 3

Purchased from abroad

Front 4

Why Nations Trade

Back 4

To obtain goods they cannot produce, To reflect comparative advantage , and to create jobs

Front 5

Comparative Advantage

Back 5

The ability of a country to produce a good at a lower cost than another country can.

Front 6

EX of comparative Advantage

Back 6

TVS cheaper to make in china then USA so we buy most of our tvs from china therefore to have comparative advantage

Front 7

Comparative advantage allows nations to :

Back 7

Speacialize

Front 8

Specialization

Back 8

Something a country can make better than other countries

Front 9

Specialization can sometimes lead to

Back 9

Overproduction

Front 10

Tariff

Back 10

Customs duty , a tax on imported goods

Front 11

Customs duty

Back 11

tariff

Front 12

Quotas

Back 12

limits on the amount foreign goods imported

Front 13

Free Trade

Back 13

Policy of reduced trade barriers

Front 14

EU

Back 14

The European Union

Front 15

An organization of independent European Nations

Back 15

European Union

Front 16

Their Combined GDP is almost as large as the United Stattes

Back 16

The European Union

Front 17

Combined GDp

Back 17

Total dolar value of all final goods and services produced

Front 18

No trade barriers where?

Back 18

In european union

Front 19

All countries in the European use what?

Back 19

The euro

Front 20

All countries in the european use the euro except for?

Back 20

The UK, Denmark, and Swedeen

Front 21

NAFTA

Back 21

THE North American Free Trade agreement

Front 22

Who is apart of NAFTA

Back 22

Canada, Mexico and the united states

Front 23

WTO

Back 23

World Trade Organization

Front 24

WTO does what

Back 24

Oversees trade among nations. Organizes negotiations about trade rules and provides help to countries trying to devlelop their economy.

Front 25

Uses the peso

Back 25

Mexico

Front 26

Japan money

Back 26

Yen

Front 27

Exchange rate

Back 27

what the price of your nations currency is in terms of another nations currency

Front 28

The BALANce of trade

Back 28

is the difference bbetween the value of a nations exports and its imports

Front 29

If a nations currency depreciates or becomes "weak" the nation will most likely

Back 29

export more goods because its producst will become cheaper for other nations to buy and vise versa

Front 30

Trade Deficit

Back 30

value of the products imported by a country exceeds the value of its exports

Front 31

Trade Surplus

Back 31

the value of the products exported by a country exceeds the value of its imports

Front 32

What is the UNITED States economic system based off

Back 32

Market system

Front 33

All Socities face the basic questions of :

Back 33

What to produce , how to produce it and for whom to produce it for.

Front 34

Another name for Capitalism

Back 34

a market economy

Front 35

Market Economy

Back 35

System in which individuals own the factors of production and make economic decsions through free interaction

Front 36

the whom , what , how are decided in a free market based on the interaction of supply and demand

Back 36

in a Market Economy

Front 37

One of the chief characterisics of a market economy is `that :

Back 37

Private citizens not the gov own the factors of production

Front 38

Is a market economy decentrailized-decisions are made by all the people in an economy not a few

Back 38

YEs

Front 39

The Are no what kind of economys in the world?

Back 39

Pure market economys

Front 40

externalities

Back 40

Unintended side effects that have an influence on third parties

Front 41

ex of negative externalities

Back 41

Second hand smoking , drunk driving

Front 42

The majority of the largest economies in the world today are

Back 42

Market economies

Front 43

per capita GDP

Back 43

Gross Domestic Product per pseron

Front 44

Per Capita divides:

Back 44

Total GDP by the countries populatio

Front 45

Most countries that have the highest gdps have BLANK economies

Back 45

Market

Front 46

Opposite of the market economy

Back 46

the command economy

Front 47

In this type of economy the individual has little if any influence over how the basic economy functions

Back 47

Pure command economy

Front 48

Under this system the mjr economic decisions are made by the central gov. The gov. tells producers what to do and commands the actions they should take.

Back 48

command economy

Front 49

This system is also called a controlled economy

Back 49

command economy

Front 50

the term communism applies to what kind of economies?

Back 50

Command economies

Front 51

The belief that the means of production should be owned and controlled by society, either directly or through the government. People who liked this system felt the wealth should be spread equally

Back 51

Socialism

Front 52

A socialist who advocated violent revolution, THis person believed that eventaully socialism would evolve to full comunism he called his ides the "scientific socialism"

Back 52

Karl Marx

Front 53

A german thinker

Back 53

Karl Marx

Front 54

Under BLANK one class would evolve , property would all be held in common , and there would be no need for gov.

Back 54

Communism

Front 55

In a BLANK economy most productive rescoureces especially land and capital are owned by gov.

Back 55

Command

Front 56

The command economy has BLANK basic allocation decisions to answer

Back 56

3

Front 57

The command economy had 3 basic allocation decisions to answer theyare:

Back 57

what to produce , how goods will be produced, For whom they will be produced

Front 58

Two examples of command economies

Back 58

Cuba and North Korea

Front 59

command economies generally have Blank GDPS

Back 59

low

Front 60

BLANK combines basic elements of a pure market economy and a command economy.

Back 60

A mixed economy

Front 61

Most countries with mixed economies combine:

Back 61

Private ownership of property , and individual decision making combined with government intervention and regulations

Front 62

Main reason for a transition from one economy to another:

Back 62

the remarkable success of the major market economies of the world. Market economies have prospered , other countries want that success

Front 63

The Soviet union collapsed in
and why

Back 63

1991

Communist leaders could no longer keep the economy going

Front 64

Main economic decision in russia during soviet times were made by a planning body called the

Back 64

Gosplan

Front 65

countries whose average per capita income is only a fraction of that of most industrialized countries

Back 65

Developing countries

Front 66

Most countris trying to make transitions have economies

Back 66

traditional economies

Front 67

Things are done ,"The way the have always been done"

Back 67

Traditional economies

Front 68

Economic decisions are based on custom or habit

Back 68

Traditional economies

Front 69

Problems developing countries face:

Back 69

-High rate of population growth
-Geography<- No access to trade routes and natural resources <- might lack
-Problems left over from wars <- destroyed buildings, reconstruction
-Severe debt <- might have borrowed large sums of money to spur economic growth
-Corruption<- gov officials

Front 70

Organizations that exist to help countries develope and overcome obstacles: *************

Back 70

The Internationsl Monetary Fund (IMF)
International bank for reconstruction and development (WORLD BANK)