| Term | Definition |
|---|
| theocracy | govn't run by religion |
| 2011 | withdraw American troops from Afghanistan by ____ |
| blue dog democrats | democrats, but not as liberal |
| public option | health care plan for the unsured |
| Medicare | older people; anyone can go into it if you've paid the fund |
| Medicaid | insurance for welfare |
| filibuster | time-runner; senate wastes time |
| cloture | stops filibuster (need 60 votes from senate) |
| FDR (Franklin Delano Roosevelt) | trade-off health care for social security |
| Ben Bernanke | chairman of federal reserve; powerful govn't; charge of military policy for 7 years |
| VP (vice president) | tie in Health, __ gets the deciding vote |
| complementary | type of want (helmet & bike) |
| recurring | type of want (shoes, tires, razors) |
| change | wants ______ over time |
| individual | type of want for ourselves (goods & services) |
| collective | type of want for the community paid by the govn't |
| necessary | type of want: food, clothing, shelter (3 essential ones) |
| resources | categorized as land, labor, capital, entrepreneurship |
| money | _____ is NOT a capital or resource |
| US (United States) | __ is the wealthiest nation |
| Japan | this country has a large labor force, many entrepreneurs & capital, but little land for resources |
| China | this country is a poorer nation with a massive labor force & land, but not enough entrepreneurs |
| unlimited, limited | people have _________ wants but resources are _______ |
| capital | more resources for _______ goods today; satisfies more wants |
| Edward Kennedy | Senator ______ _______ of Masschusettes passed away |
| Joseph Kennedy | he made one of the biggest fortunes in Amer. history (stock market before 1929 crash) |
| Securities Exchange Commission (SEC) | Joe Kennedy was the 1st chairman of this (financial securities) |
| Federal Deposit Insurance Corporation | FDIC (stands for) |
| opportunity cost | 2nd choice or next best choice; alternative |
| trade-off | more of one thing, less of another |
| rationing device | money or "price system" |
| PPF | economic model that shows various combinations |
| scarcity | competition and making choices are consequences of ________ |
| Adam Smith | sees self-interest positively |
| Karl Marx | sees self-interest as "selfishness" |
| margin | additional benefits |
| incentive | money is a big _________ |
| tangible, intangible | goods are ________; services are __________ |
| choices | economics is about _______ |
| costs | choices always involve _____ |
| incentives | like rewards, lead you to make one choice over another |
| Bismarck | he put German Empire together in 1880s; first state to set up a social welfare system |
| 1936 | the year US gained social welfare (social security) by FDR; trade-off with Health Care |
| tariff | tax on imported goods helped grow federal govn't in the early 1900s |
| 16th | (1913) the __ amendment levied the income tax to be passed |
| 1750 | roughly the year the Industrial Revolution started |
| laissez-faire | "let them be" |
| freely | Smith believed individuals should act ______ |
| 1917 | year Russia communist societies emerged |
| communism | 1980s: _________ began to collapse because it did not lead to growth like individual decisions; Soviet Union |
| physical environment | factor of economic determinism; environment shaped the economy; climate/resources; environmental determinism |
| Jared Diamond | (1997) wrote the book "Guns, Germs, and Steel" (what the Europeans brought and did); believed countries were blessed by geographic areas (N.A. & Europe) |
| cultural considerations | factor of economic determinism; concepts of nature; religions (animists, hindus, buddhists, muslims, western <judeo-christian> |
| technology | factor of economic determinism; artifacts, processes, ways of thinking --> levels |
| political decisions | factor of economic determinism; govn't (taxes); laws & regulations; EX: FDA |
| economic factors of demand | factor of economic determinism; "wants" vs. "needs"-->Ads-->consumeration-->scarcity |
| economic determinism | economy determines how we live; Marx: want to know how a country functions, study its economy |
| Charles Beard | 1913 wrote "An Economic Interpretation of the Constitution" which stated the framers were concerned with their property than the "pursuit of happiness"; known as a Marxist |
| John Locke | govn't exists to protect life, liberty, and property |
| primary (economic activity) | hunting & gathering |
| secondary (economic activity) | manufacturing |
| tertiary (economic activity) | services |
| quaternary (economic activity) | processing & distribution |
| quinary (economic activity) | high-level decision making jobs (CEOs) |
| subsistence farming | enough to feed your family |
| enclosure movement | lands open to everybody |
| commercial agriculture | starts in Britain to make money |
| extensive subsistence | lots of land, less labor |
| intensive subsistence | lots of labor, less land |
| extensive commercial | large-scale wheat-farming, livestock ranching |
| intensive commercial | dairy & truck farms, livestock-grain farming |
| Alfred Weber | least cost theory (agglomeration, labor, & transportation) |
| offshoring | find cheaper labor elsewhere |
| US, Japan, Germany, Britain, France, Italy, Canada | G7 countries (meetings of finance ministers to discuss economic policies; make major economic decisions since WWII) |
| PCI (per capita income) | GDP (gross domestic product) / population |
| HDI (human development index) | put out by the UN; relies on PCI + literacy rate + life expectancy + education levels |
| Switzerland | world's richest nation according to MEDIUM income |
| Luxembourg | world's richest nation according to PCI |
| Walt Rostow | economist who stated LCD's go through 5 levels of development |
| traditional economies | 1st level of Rostow's development |
| preconditions for economic "take-off" | 2nd level of Rostow's development; infrastructure & schools |
| take-off | 3rd level of Rostow's development; grows, gains momentum |
| drive to maturity | 4th level of Rostow's development; more investment, more infrastructure |
| mass consumption | 5th level of Rostow's development; growing domestic consumer market |
| 5; 4 | China is in stage _; India is in stage _ (Rostow's development) |
| Richard Neustadt | power of the bully (good idea) pulpit (platform); president can appeal directly to congress (Teddy Roosevelt used media & press); great power (can persuade Amer. govn't) |
| market, command, mixed, traditional | four basic economies (separate with commas) |
| Democratic Socialist Parties | France, Scandinavian countries (Norway & Sweden); Britain 1940s-1950s |
| command market | communism & socialism (ancient: pharohs in Egypt; modern: welfare states of Great Britain); decision by govn't leaders; govn't owns factors of production; prices set by govn't; consumer choice is often limited; resources can be quickly rerouted; income distribution can be controlled by the govn't |
| Union of Soviet Socialist Republics | USSR (1917-18 in control of ex Russia) |
| Robert Reich | US Secretary of Labor is pushing US to adopt industrial policy (research & development) like Japan |
| eminent domain | 5th amendment states reimbursement if property is taken (in market economy); "not deprived of life, liberty, and propery" |
| traditional economy | based on customs and beliefs; agriculture (subsistence); resistance to CHANGE; methods of production are INEFFICIENT; strong family; answers to economic questions are based on customs, skills, and cultural beliefs |
| mixed economy | almost every economy is _____ (except N. Korea and Cuba) |
| Hong Kong; 12th | ____ ____ is the most economic free state; US is __ most free economic state |
| manoralism | early Middle Ages (9th-10th cent.); feudalism (kinghts); Europe; subsistence agriculture |
| mercantilism | 1500s-1700s in Europe until the arrival of Smith; regulate economic activities of the state; limited amount of wealth (gold & silver) ("heavy hand") |
| GDP (gross domestic product) | total output of goods & services of a country over a year |
| fascism | Hitler & Mussolini; corporate state: economic interests |
| market economy | decisions by INDIVIDUALS; INDIVIDUALS own factors of production & choose what to make; consumer choice is large; little incentive to engage in unprofitable ventures |
| socialism | W. Europe are democracies; taken over certain institutions and businesses; has a market economy; public and private sectors |
| communism | ALL resources owned by govn't; restrictions on careers; redistribution of income; TOTALITARIAN (dictatorship) |
| Wealth of Nations | 1776: Smith wrote book which attacked mercantilism; govn't should regulate economy for the benefit of the state |
| Adam Smith | pragmatic/observant/optimistic; observed Britain during Industrial Revolution |
| invisible hand | SUPPLY & DEMAND; individuals motivated by SELF-INTEREST and it's good because it increases COMPETITION -->high quality products, lower $ |
| monopolies | high profits for bad quality products; govn't should restrict the formation of these (US govn't does) |
| Sherman Anti-Trust Act | 1890: federal govn't able to break up monopolies (Teddy Roosevelt with Standard Oil by the Rockefellers) |
| for | businesses are ___ health care reform to lower costs; provide health insurance to have healthy employees |
| factory system | Smith is for this because it's efficient |
| division of labor | people do different things; specialize |
| Communist Manifesto | 1849 Karl Marx wrote this pamphlet with Engles |
| Das Kapital | 1867 Marx wrote this; economy theories that were later disproved |
| Karl Marx | he is important because he made an influence on social deomcratic movement providing welfare state; inspiration to 2 revolutions (Soviet Union, 1917 & China by Mao 1940s); attracted followers; last of the great Jewish prophets |
| greed | Marx: "essence of capitalism is _____" (selfishness) |
| Economic Interpretation of History | study economic relationships to understand countries |
| opium | religion was the [drug] of masses; tool used by elites to keep the masses of people under their control (lower classes) |
| G.W. Hegel | famous German philosopher; believed change occurs as a result of the dialetical processes; idealist (history is the evolution of idea systems) |
| dialetical materialism | thesis --> antithesis --> synthesis --> acc. theis --> and goes on... |
| thesis, antithesis, synthesis | world spirit (das ganse) --> space & time --> knowledge; (world spirit creates idea but expresses them through the physical world) |
| ideas | dialetic = change, then clash of _____ |
| social classes | Marx (atheist) borrows dialetic process, but not conflict between IDEAS, but ______ _______ (materialist) |
| labor theory of value | labor creates value |
| surplus value | capitalists steal from workers; why the low wages |
| alienation of labor | what's produced is taken from them |
| communism (Marx's vision) | controlling institutions disappear (companies); envisioned it as adult play (no more work); seemed like a utopia |
| 3 Sectors of the Economy | businesses, households, govn't |
| Bill of Rights | govn't can't just take private property; must compensate the owner for the land |
| Declaration of Independence | signed it because they wanted (freedom to) trade |
| US Constitution | preserving competition; states not allowed to tax one another on goods (less competition then) |
Combine with other sets
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