6th Social Studies CRCT Review #4 Economy, Government
General economic and government questions
(Citizen participation) -- Power of the government is in the hands of 1 person. Citizens have no role in government decisions.
(Citizen participation) -- Power is in the hands of the people. The people elect leaders and participate in government. (U.S., U.K., Canada)
(Citizen participation) -- Power is in the hands of a few people or a small group. (South Africa before the end of Apartheid)
A system of government in which power is divided between a central government and individual states. (U.S., U.K., Canada)
A system of government in which power is in the hands of one; government controls everything (China, Cuba)
A voluntary association of states that agree to follow a powerful central government. (European Union)
Type of democracy in which the citizens elect the legislature, then the Prime Minister (leader) is appointed by the legislature. Head of State and Chief Executive are two different people. No set limit on how long the Prime Minister may serve in office.
MARKET ECONOMY (or MIXED MARKET)
Economy driven by individuals with private ownership of businesses. Lots of competition, little government interference. (U.S., U.K., Canada)
Economy that is dictated by the government. Little or no competition. (China, Cuba)
Economy based on the traditions of the local population. Found mostly in areas where people grow food to eat (many African countries, some Asian countries, Canadian Inuits, etc.)
A trade barrier that imposes taxes on imported goods. Remember: TAriff = TAx
A trade barrier that places a ban on imported goods. Remember: emBArgo = BAn
A trade barrier that limits the number of imported goods. (Remember: QUota+QUantity)
People needed to make business work. An example of human capital is your free public school education.
Goods or equipment needed by businesses to produce other goods. Factories, computers, big machines, etc.
Someone that starts a business.
Something that occurs naturally in nature that you can sell for money. Gold, timber, oil, natural gas, etc.
What is GDP?
GDP = Gross Domestic Product; That's HOW MUCH MONEY YOUR COUNTRY MAKES IN A YEAR by producing and selling products and services.
How do entrepreneurs increase a country's GDP?
Entrepreneurs increase the country's GDP by starting businesses that give people jobs. When people have jobs, they spend more money which increases the GDP.
What are the basic issues that economic systems address?
WHAT to produce, HOW to produce it, for WHOM is it being produced
How does investing in CAPITAL GOODS increase a country's GDP?
By making investments in capital goods countries may be able to produce items to sell and trade, which, in turn, make the GDP higher. (An example of a capital good would be a huge machine in a factory that makes things.)
Give an example of an investment in HUMAN CAPITAL
Any kind of education or training for citizens can be considered an investment in human capital. Your free education from 1st grade - 12th grade is an example of an investment in human capital.
Why should countries invest in HUMAN CAPITAL?
Countries must train and educate their citizens so the country will always be able to produce and sell things that people need.
Why do countries exchange currencies?
Because money's value is different in each country (except members of the European Union - they have the EURO). A dollar in America is not worth a dollar in other countries.
What is a problem with exchanging currencies?
Banks charge fees to exchange currency. (It costs money to exchange money!)
What is the relationship between literacy rate and standard of living?
A high literacy rate = a higher standard of living. Simply put, the more education you have and the more people can read, the more money they will make. EDUCATION = $$$
What type of economy do COMMunist countries have?
How are the economies of all the countries we've studied alike?
They all have MIXED MARKET economies. All the places we've studied have mixed economies except for Cuba! (What type of economy does Cuba have?)
How are the governments of all the countries we've studied alike?
They are all democracies (except Cuba!!!). People can vote for their leaders. Most are federal republics/parliamentary democracies.