Vocabulary
The IMF gives long or short-term loans?
Short-term
Who came up with the idea of Marxism? FULL name.
Karl Marx
A system where private owners control production and trade for profit.
Capitalism
Market Failure is...
When the free market does not allocate resources efficiently on its own.
What is fiscal policy?
The use of taxes and government spending to influence the economy.
The value of one currency compared with another is...
Exchange Rate
Who came up with the idea of the 'invisible hand'?
Adam Smith
A system where the government or community owns the means of production.
Socialism
Give an example of market failure.
A factory polluting a river.
Why would someone support deregulation? Give two reasons.
Lower prices, increased competition, encouragement for new businesses to enter the market.
The definition of infrastructure with at least two examples.
Physical systems such as roads, electricity, and water networks.
Who believed government intervention leads to a destabalized economy?
Milton Friedman
A system that combines market activity and government action.
Mixed Economy
A transaction that affects other people who were not part of the decision is called...
Externality
What increases demand for a currency?
Foreign buyers using a country's currency to pay for goods.
What is the name for when exports are greater than imports, and for when imports are greater than exports.
Trade Surplus / Trade Deficit
Who believed governments should spend during crisis/recession, and save during booms.
John Keynes
A reward that encourages people to behave in a certain way.
Incentive
Give an example of a positive externality.
Education
Why is a deficit not always bad?
If consumers have enough income to buy many goods from abroad/currency is strong, money spent on imports may return as foreign investment into businesses, stocks, or real estate.
Cap and trade is...
A policy system that limits total emissions and allows permits to be bought and sold.
Who implemented an economic theory called 'Corporatism'?
Benito Mussolini
"from each according to his ability and to each according to his need" - said by what philosopher? What economic system?
Marx - Socialism
When inflation is too high, what can governments do to try to fix it?
Reduce spending, increase taxes.
Give two examples of climate policies hurting society.
Higher gas/electric prices hurt low-income households, workers in fossil fuel industries may lose jobs.