Econ Terms #1
When a state becomes more market oriented
What is economic liberalization
When a government spends more than its revenues
What is deficit spending
Term for an economic downturn
What is a recession
State that provides a safety net for its citizens
What is a welfare state
When government, using an elaborate bureaucracy, controls the allocation of goods and services
What is a command economy
Goal of having economic growth without long-term damage to the environment
What is sustainable development
Measures the well-being of citizens in a state
What is HDI (Human Development Index)
1 is good, zero is bad
Case involving disputed judge positions which established the precedent of judicial review in the US
What is Marbury v. Madison (1803)
Argues that a large federal republic will be dangerous to liberty
What is Brutus No. 1
When markets and cultures of states become more integrated
What is globalization
Another name for an SOE
What is a parastatal (State-owned enterprise)
When states join together and give up a little sovereignty in order to gain a benefit
What is a supranational organization
Privately funded organization that does work typically done by governments (e.g., Doctors without Borders)
What is an NGO (nongovernmental organization)
When a state gets 50+% of its revenue from the sale of a natural resource like oil
What is a rentier state
Measure of the sum of goods and services per person of a state
Measure of inequality in a state
What is the Gini Index
0= everyone has exactly the same
1= Jeff Bezos has it all
Case involving a gun-free school zone, which put the brakes on the federal government's stretching of the commerce clause
What is US v. Lopez (1995)
Argues that a unified executive will be vigorous, efficient, and protective of republican government
What are MNCs (multinational corporations)
Executive departments (also, bureaucracy acceptable)
When a state allows in outside capital to spur development
What is Foreign Direct Investment
2 AP case countries with most liberalized economies
What are Mexico and the UK
NAFTA 2.0
(North American Free Trade Agreement)
What is the USMCA (United States-Mexico-Canada Agreement)
2 of 3 AP Case countries with the largest state role in the economy
What are China, Iran and Russia
Index which measures the level of corruption in a state
What is the Corruption Perception Index
100 = very clean
0 = very corrupt
Case involving a land dispute in Georgia and other deep southern states that protected property rights and contracts from state interference and established precedent that the federal court power of judicial review applies to state laws and actions
What is Fletcher v. Peck (1810)
Enumerates the delegated powers of the federal government
What is the US Constitution
When resource allocation is determined by private ownership and decisions
What is a market economy
Place within a state given lower taxes and regulation to encourage development
SEZ (Special Economic Zones)
An economy with a high percent (e.g., 70%) of its workforce in the service sector
What is a developed economy (also accept post-modern)
Government spending or tax cuts during a recession
What is Keynesian stimulus
"Belt tightening" during an economic downturn (also, often part of an SAP)
What is austerity
Measure of sum of goods and services per person in a state when equalized to account for relative buying power
Organization which produces an index rating states for political and civil freedom
What is Freedom House
Highest possible aggregate score of 100
--up to 60 for civil freedoms
--up to 40 for political freedoms
Case involving the state of Maryland's attempt to tax the federal Bank of the US; expanded the necessary and proper clause and cemented the supremacy clause
What is McCulloch v. Maryland (1819)
Argues that dividing government into three separate branches and between federal and states, with checks and balances between each sphere will best ensure continued liberty in a large republic
What is Federalist No. 51
Theory that countries are less developed because of the legacy of colonialism
What is dependency theory
Approach to development that emphasizes raising tariff barriers to protect domestic industries
ISI (Import Substitution Industrialization)
Approach to economic development that emphasizes jumping directly into the world market
What is Export-Oriented Industrialization
Reforms taken by a state facing difficult economic times to liberalize its economy (often done to secure a loan from the IMF [International Monetary Fund])
SAP (Structural Adjustment Program)
What are the Asian Tigers (South Korea, Taiwan, Singapore)
When a society begins to focus on quality of life and not just material prosperity
What is postmodernism (or post-materialism)
An economy that liberalizes is likely to have an increase in GDP and an increase in which 2 indices
What are HDI and Gini (but not necessarily Freedom House Index)
Case involving water trade between New York and New Jersey which cemented federal control of commerce and affirmed the supremacy clause
What is Gibbons v. Ogden (1824)
Argues that, since factions and cleavages are inevitable, the best way to protect liberty is to have a large republic where various factions will cancel each other out ensuring against tyranny from any one faction
What is Federalist No. 10