Economic Systems
In this system, individuals and businesses, not the government, make most economic decisions.
What is a market economy
This Asian country began reforms toward a market economy in the late 1970s after the Cultural Revolution.
What is China
This Bretton Woods institution provides long-term development loans and advice to countries.
What is the world bank
The World Bank classifies countries by this main measure of income.
This type of risk refers to macroeconomic changes like inflation or unstable exchange rates that threaten foreign investments.
What is economic risk
This system features government ownership of resources and centralized planning of production
What is a command economy
The IMF lists four critical conditions for successful transition. Name them.
What are liberalization, macroeconomic stabilization, privatization, legal & institutional reforms?
This specialized UN agency focuses on international public health.
What is the World Health Organization
The IMF groups countries into three categories. Name them.
What are advanced economies, emerging markets, or developing economies?
Inflation is measured in the U.S. by this index.
What is Consumer Price Index (CPI)
Name one disadvantage of a market economy.
What are business cycles, inequality, or moral hazard?
Brazil and India’s transition focused on reducing this type of policy, which protected domestic industries.
What is import substitution
The UN was founded in this year after WWII.
What is 1945
GDP measures production within a country, while GNI also includes this.
What is income from abroad (factor income flows)
High levels of this often indicate government overspending and potential instability.
What is debt
This economic system is often found in democracies, while command economies are linked with this type of political system.
What is authoritarian/totalitarian rule?
A pro of privatization is profit incentives, but one con is this, where private firms can dominate the market and overcharge.
What is a monopoly
The UN’s HDI measures three things. Name them.
What are life expectancy, education, and income (GNI per capita)?
This index from the Heritage Foundation measures freedom in areas like trade, finance, and property rights.
What is economic freedom index
The “triple bottom line” measures success in these three areas.
What are economic growth, social equity, and environmental protection?