Chapter 10 (1)
What are Incentives?
An incentive is something that motivates or encourages someone to take a particular course of action. It can be a reward or benefit that is offered to influence behavior and decision-making.
What is the Gold Standard?
The gold standard was a monetary system in which the value of a country's currency was directly tied to a specific quantity of gold.
What does the FTA stand for
Free Trade Agreement
What is the definition of an import and an export?
Import: is the act of bringing goods or services into a country from abroad
Export: is the process of sending goods or services from one country to another
What is inflation?
Inflation is the sustained increase in the general price level of goods and services in an economy
What was the Bretton Woods Agreement?
44 Democratic Allied countries met in the United States at Bretton Woods, New Hampshire, to discuss the postwar economic order.
This agreement established a system of rules, institutions, and procedures for the postwar global economy.
What is a floating exchange rate?
A floating exchange rate is a countries currency being determined by market forces, meaning it changed based on supply and demand
What is a tariff?
A tariff is a tax imposed by one country on the goods and services imported from another country
What are Fair Trade Products?
Products that you know are not exploiting workers. You directly supporting farmers or workers in other countries by ensuring they get a fair wage for their work.
What is a recession?
A recession is a period when the economy slows down, businesses may struggle, and many people might lose their jobs.
Scarcity
Scarcity refers to the basic economic condition where limited resources are insufficient to satisfy unlimited human wants and needs.
What is the difference between a free market and centrally planned economic system?
Free Market is an economic system based on supply and demand with little or no government control,
Centrally planned economic system is lots of government control of economics
What is more recent, NAFTA or USMCA?
USMCA
What is Deregulation?
is the process of removing or reducing state regulations, typically in the economics
What does it mean to Outsource a job?
When a company hires a third party to fulfill certain tasks or to provide their services.
What were the two organizations the Bretton Woods Agreement created?
IMF and World Bank
What does John Maynard Keynes believe in?
Governments should play an active role in their countries' economies, instead of just letting the free market reign.
What country was kicked out of the G8 in 2014?
Russia
What is a crown corporation?
An organization or business that is owned by the government. Typically, the government has shares in these firms, which it owns and operates.
What is Privatization?
is the sale of government-owned industries and services to private businesses.
What is the goal of the World Bank?
Its role is to reduce poverty by lending money to the governments of its poorer members to improve their economies and to improve the standard of living of their people.
He believed in classical liberalism and free-market capitalism.
He argued against central planning and in favor of individual freedom and spontaneous order in the market.
What is the World Trade Organization?
An organization that regulates and facilitates international trade. With effective cooperation in the United Nations System, governments use the organization to establish, revise, and enforce the rules that govern international trade.
What is a Trading Bloc? Give 1 example.
A trading bloc is an alliance of nations that works together to lower trade barriers and advance economic integration
Example: USMCA or the European Union
What was 1 of Fredrich Hayek's 5 key ideas?
He believed in spontaneous order
He believed in the Free market
He believed in Individual freedom
He believed in Limited Knowledge