International Trade
This is when a nation produces a narrow range of products based on its resources
What is Specialization?
These are the two levels of development in a country
What is developed and less developed countries?
This man came out with the communist Manifesto in 1848 and started the idea of communism
Who is Karl Marx?
These types of statements are factual statements, that tell how the world is, and they can be tested
What is a positive statement?
This would happen on the demand graph, where the price of the product increases but all else stays the same
What is a movement along the demand graph?
The United States is typically in this balance of trade
What is a trade deficit?
These nations make up 15% of the world that is considered developed
What is USA, Canada, W.Europe, Japan, South Korea, Australia, and New Zealand
This country, found in both Europe and Asia, was one of the largest examples of communism after WW1, and inevitably fell in 1990s
What is the USSR?
This is the idea of unlimited wants with limited resources
What is scarcity?
This type of unemployment would be when someone is moving from one company to another, or a teacher is moving from one school to another
What is Frictionally unemployed
This is when a nation can produce more of a product than a trading partner using the same amount of resources
What is absolute Advantage?
This is a common method to determine the standard of living within a country, where GDP is divided by population
Per Capita GDP
This was the original leader for communist china, who lead a cultural revolution, and instituted communism into the China
Who is Mao Zendong
This is the value of the next best alternative given up in a choice
This is the highest point in the business cycle
What is a Peak?
This organization formed in 1993 features most of western Europe and has a common currency
What is the EU?
This is the effect where knowledge continues to leave the country due to political, cultural, or the standard of living is too low
What is Brain Drain?
This is one of the largest suppliers of aid to developing nations, who provides monetary assistance to those that need it
What is the World Bank
If given a PPC graph, where the graph represents the production in a nation of DVD's and Water, if the Nation finds a new way to produce DVD's that increases its production, this would happen to the PPC graph
What is part of the curve shifts outward?
This is a good or service provided by the government, which they use tax money to provide these goods
What is a public good?
This principle explains why even if Country A is better at producing both wine and cloth than Country B, it can still benefit from trading with Country B if it focuses on producing the good it is relatively better at.
This is the criteria in which we determine the development level of a country
What is Per capita GDP, Standard of living, Level of Industry, Life Expectancy, Literacy Rate, And energy
This man instituted the Four Modernizations plan in Communist China, separating industry into special economic zones to boost production
Who is Deng Xiaoping?
The law of demand believes that as prices fall, the quantity demanded goes ____, where if prices rise, then the quantity demanded goes _____
What is Up, and Downn
This would be an example of a low-risk savings account, which would feature limited transactions and a higher average return
What is a money market account?