Economy
What is the main characteristic of a market or capitalist economy?
People and businesses (not the government) own most companies, land, and resources, and make decisions based on supply and demand.
What is inflation?
The rate at which prices for goods and services rise over time.
What is a single-payer healthcare system?
A system where the government provides healthcare for everyone, instead of private insurance.
What is the difference between absolute monarchy and constitutional monarchy?
Absolute monarchy has a ruler with almost total control, while constitutional monarchy shares power with an elected government.
What is totalitarianism?
government where one leader or party has complete control over politics, media, economy, and daily life.
How are prices determined in a capitalist economy?
Prices are set by competition, not the government.
How can high inflation affect people’s lives?
It reduces the buying power of money, making everyday items more expensive.
What is the Human Freedom Index? (Be specific about the two categories of freedoms)
A ranking that compares countries based on economic and personal freedoms, including trade, taxes, and individual rights.
Name one advantage and one disadvantage of democracy.
Advantage: People have a voice in government. Disadvantage: Decision-making can be slow.
Name one country that has a theocracy.
Iran
Vatican City
Give an example of a country command economy.
North Korea (also other options)
Why does competition in capitalism prevent extreme exploitation?
Because other businesses will offer better wages to attract workers, keeping pay closer to the value of work.
What are some challenges with single-payer systems mentioned in the text?
Long waiting lists, rationing care, and limitations on access to new treatments.
What is a key feature of communism?
The government owns all property and businesses, and resources are shared equally.
How does democratic socialism differ from pure socialism?
Democratic socialism allows free elections and democracy while providing public services, whereas pure socialism emphasizes government control of industries.
What does GDP per person (per capita) tell us about a country?
How much the country produces per person and an idea of average wealth or living standards.
What is a constitutional monarchy?
A king or queen shares power with elected leaders.
What role did Hong Kong's government play in their economy becoming prosperous according to the video?
Its government had few obstacles for starting businesses, allowing people to try new ideas freely.
What problem can arise when the government heavily regulates the economy?
open-ended
What does Marx argue about capitalism?
hat it can exploit workers by paying low wages to maximize profit.
Why might a high GDP per person not mean everyone is wealthy?
GDP is an average and does not show how money is distributed among the population.
In a command economy, who makes most decisions?
Businesses and consumers
What country ranks the highest on the Human Freedom Index?
Switzerland
Name four countries that are socialist
Classical/State Socialism (government controls most major industries)
China – officially communist, but has some capitalist markets mixed in.
Cuba – government owns most businesses and resources.
Vietnam – communist government with some market reforms.
North Korea – extremely state-controlled economy.
Democratic Socialism (socialist policies within a democracy, high taxes, strong welfare)
Sweden – high taxes, universal healthcare, strong public services.
Norway – extensive social programs, government involvement in economy.
Denmark – government provides welfare and healthcare while allowing private business.
Finland – similar model with strong public services.
Name four countries that are republics
Canada
United States – citizens elect a president and representatives.
France – citizens elect a president and parliament.
India – parliamentary republic with elected officials.
Brazil – presidential republic with elected representatives.
South Korea – presidential republic with democratic elections.
Mexico – federal presidential republic with elected officials.