Macroeconomics Chapter 9

Front 1

barter

Back 1

exchange of goods, services, or assets directly for other goods, services, or assets without the use of money

Front 2

use right

Back 2

the right of an owner to use or control a designated property, but not necessarily the right to sell it or give it away

Front 3

comparative advantage

Back 3

the ability to product some good or service at a lower opportunity cost than other producers

Front 4

principle of comparative advantage

Back 4

gains from trade occur when producers specialize in making goods for which their opportunity costs are relatively low

Front 5

free trade

Back 5

exchange in international markers not regulated or restricted by governmental actions

Front 6

infant industry

Back 6

an industry that is relatively new to its region or country

Front 7

tariffs

Back 7

taxes put on imports

Front 8

quotas

Back 8

restrictions put on the quantity of goods that can be imported

Front 9

protectionist policies

Back 9

policies undertaken by governmental seeking to reduce reliances on imports and encourage domestic industry

Front 10

in-kind transfers

Back 10

transfers of goods or services

Front 11

dependency needs

Back 11

the needs to have others provide one with care, shelter, food, and the like when one is unable to provide these for oneself

Front 12

ability-to-pay principle

Back 12

the idea that the more resources you have, the more you should be required to contribute to public purposes

Front 13

moral hazard

Back 13

a situation that encourages actors to change their behaviors in undesirable ways in order to take advantage of a policy

Front 14

Lorenz curve

Back 14

a line used to portray an income distribution, drawn on a graph with percentiles of households on the horizontal axis and the cumulative percentage of income on the vertical axis

Front 15

Gini Ratio

Back 15

a measure of inequality, based on the Lorenz curve, that goes from 0 up to 1