Category 1
Why do individuals and countries have to make choices about what to produce, how to produce, and who receives what is produced?
*Hint- Think about number of available resources*
All goods are scarce.
What is the relationship between energy consumption and the development of a country?
The more energy consumption, the more developed the country.
What are two factors that can hinder economic development?
What dos it mean to have an absolute advantage?
Being able to produce more of a good than the other party.
An agreement among countries in a specific area to exchange goods is called a
Trade Agreement
What are the three factors of prodcution?
Land, Labor, Capital
True or False?
True
What is the Human Development Index?
What does it mean to have a comparative advantage?
That a person has a lower opportunity cost of producing a good.
The organization that regulates and facilitates international trade.
World Trade Organization
The total amount of goods and services produced in a country during a given time period.
Gross domestic product
What are three characteristics of a more developed country?
What are two advantages of specialization?
Increased production, more money.
Kelly can produce 3 pairs of pants or 7 shirts per hour.
Who has the absolute advantage?
Jose- He is more efficient at producing all goods.
The rate at which currencies are exchanged.
Exchange rate.
The GDP when taking into account population.
What are three characteristics of a less developed country?
What are two disadvantages of specialization?
Interdependence, disputes over trade barriers/regulations.
A transitional economy means that a country is transitioning their economy to one controlled by the _______________ to one that is controlled by the _________________
government, people (private businesses)
International Monetary Fund.
Why is it that the U.S. GDP and China GDP are similar, but the per capita GDP is very different?
China has a significantly larger population than the U.S. does.
In a more developed country, you will see
________ literacy rates
__________ infant mortality rates
__________ life expectancy
Higher literacy rates
Lower infant mortality rates
Higher life expectancy
What is a multinational corporation?
A corporation that operates in multiple countries.
What are two ways the government can encourage or discourage trade between countries?
Tariffs, quotas, regulations, sanctions.
The global partnership organization that is a vital source of financial aid.
The World Bank.