Economics 1
This is the total sum of goods a country produces in a single year, used to measure a country's wealth.
Gross
Domestic
Product
Every country in the world has a ___________ economy.
Mixed
A form of government in which the people have the power.
Democracy
This is the name for an autocracy ruled by a small group of people.
Oligarchy
Explain how a country's literacy rate affects the standard of living in a country
Higher literacy rate=Higher level of education (human capital)
Higher level of education=More skilled workers that do better jobs.
Better jobs=more money.
More money=better quality of life.
Why does investing in capital goods improve your economy?
Capital goods are technology and machinery that produces goods more efficiently (better, faster, with less work.) More goods being produced at a quicker rate means higher GDP.
Explain the difference between head of state and head of government
Head of state-Symbolic, doesn't really have any power
Head of government-Chief executive, actually holds major power in the government
Name the branch of government that writes the laws
Name the branch of government that enforces the laws
Writes laws- Legislative (parliament)
Enforces laws- Executive
In which type of economy would you see MORE entrepreneurs?
Free, market economy
True or false: Japan must export most of its food since it has very little farmland to make food for itself.
FALSE: Japan must IMPORT most of its food.
Name 3 countries in Asia that have a constitution that guarantees certain rights and freedoms for its citizens
South Korea, Japan, India
Explain why North Korea has such a low GDP.
Economy is almost entirely controlled by the government. Very little entrepreneurs (private business owners) making money for the economy. Also, they do very little trade with other countries.
Explain why China has decided to add more freedom to their economy
After the failure of the Command economy styled Great Leap Forward, they decided private businesses were important to making an economy grow. So they allowed more private businesses. It worked! Now the most powerful economy in the world
List two types of trade barriers and define them
Quota-limiting the number of products imported
Tariff- a tax on imported products
Sanction-specific economic punishments
Embargo-a stop of all trade with a country
Explain a scenario in which an embargo would be used effectively.
Country X is doing something that Country Y doesn't like. Country Y places an embargo on Country X to show disapproval of their actions. Country X is forced to stop doing what its doing as its economy is getting hurt from the embargo.
Japan is a constitutional monarchy. What does this mean?
It has a monarchy (emperor) but he is solely symbolic and has no real power. The power is in the constitution and the government that guarantees rights and freedoms for its citizens
Explain how tariffs help protect domestic businesses from foreign competition.
Adding a tax to foreign goods make them more expensive. Therefore, citizens are more encourage to buy from local markets instead of buying things overseas.
Draw an economic continuum on your board. Place the five Asian countries in their correct spot on the continuum
Command---------------------------------------Market
North Korea, India, China, Japan, South Korea
How are China's and North Korea's autocracy different from each other
China-oligarchy, ruled by a group of people (communist party)
North Korea-dictatorship (ruled by one supreme leader)
Name the three democracies we've discussed in Asia as well as the TYPE of democracy they are. (Presidential or Parliamentary)
Japan, India- Parliamentary
South Korea- Presidential