Term
|
Definition
| the orginisational and instituional pattern through which choices are made about wants to satisfy and how to allocate resources to do this |
|
|
Term
|
Definition
| fairness of the distribution of income and wealth |
|
|
Term
|
Definition
| a change in the way firms are managed through exposure to market disciplines; for example, the threat of takeover and the profit incentive |
|
|
Term
|
Definition
| a sustained increase in the productive capacity of an economy over a spacific period of time (usually one year), usually indicated by the increased availability of goods and services in an economy |
|
|
Term
|
Definition
| the process by which widespread improvements in the levels of living are generated and sustained |
|
|
Term
|
Definition
| the capacity of an economy to employ the avaliable capital and technology to their most productive potential; limited, eg. by lack of skilled labour, poor infrastructure and incompetent managers |
|
|
Term
|
Definition
| artificial or government-imposed restrictiveness on the free flow of goods and services |
|
|
Term
| Composite development indicator |
|
Definition
| an index of development derived from a weighted average of a comnination of development indicators; eg. the Physical Quality of Life Index (PQLI) or the Human Development Index (HDI) |
|
|
Term
| Capitalist Market Economy |
|
Definition
| an economic system in which important economics questions are decided by interaction between individual buyers and sellers in the marketplace |
|
|
Term
|
Definition
| growing integration of national economies to form a single interdependent global economy |
|
|
Term
|
Definition
| convergence of tastes and preferences across the markets of the world and the global acceptance of standardization products |
|
|
Term
| Globalization of Production |
|
Definition
| dispersal of the phases of production around the world by a firm to take advantage of national differences in production efficiencies |
|
|
Term
|
Definition
| a set if values and beliefs that determines the appropriateness of behavior and directs economic and political action |
|
|
Term
|
Definition
| ways to judging the success of an economic system |
|
|
Term
|
Definition
| the situation in which people whose resources (material, social, cultural) are so limited as to exclude them from the minimum acceptable way of life in the country which they live |
|
|
Term
| Socialist Command Economy |
|
Definition
| an economic system in which decisions about what to produce and the way the proceeds of production should be distributed among members of the society are made by a central planning authority |
|
|
Term
|
Definition
| an economic system based on government, rather than individual ownership of key resources, deemed critical to the operation of the economy. However, it allows some decentralised decision making by producers of non-essential resources and permits the limited use of markets to exchange farm products and retail consumer goods |
|
|
Term
|
Definition
| an economic system in which economic decisions are determined mainly by such things as habit, custom and religious traditions and production is almost entirely for immediate consumption |
|
|
Term
|
Definition
| changing the features of an economic system, eg. from state ownership to private ownership and from a centralised decision making to decentralised decision making |
|
|
Term
| Transitional (emerging market) economy |
|
Definition
| economies changing from a socialist, to another subsidiary of the same company in another country |
|
|
Term
|
Definition
| the staged removal of barriers to trade that undermine the free flow of goods and services across international borders. It includes the removal of government-imposed barriers such as tariffs, quotas, licensing restrictions and subsides |
|
|
Term
|
Definition
| Gross Domestic Product is a agrigate measure of a nations product or income divided by the population |
|
|
Term
| How does a counties GDP reflect its living standards? |
|
Definition
| GDP measures the total dollar amount produced by a country in terms of its exports and divides it by the population. The higher the GDP of a country the more likely that country has higher living standards as people in capitalist markets are positively influenced by a higher rate of exports |
|
|
Term
| How can a country experience Economic Growth but not Economic Development? |
|
Definition
| Economic Growth reflects an increased GDP, an increased average income and higher rates of production. Economic growth reflects increased doctors, living standards, a healthier population, reduced infant mortality, increased literacy rates. Increase in production does not always result in raised levels of pay or living standards |
|
|
Term
| Why is sustainable economic development desirable in the long term? |
|
Definition
| Continued and sustained economic development is desirable long term as it entails increased life expectancies, a higher and more educated work force, a healthier population with decreased infant mortality rates and more doctors. A steady increase of these aspects results in a country moving towards 1st world or a developed country. |
|
|
Term
| What are the characteristics of a subsistence economy? |
|
Definition
| Substance economies are where traditions determine economic decision making ( pure subsistence economies no longer exist) known as barter or primitive economies because goods are commonly swapped directly for other goods. Specialisation, surpluses, industry and a monetary sector are not evident. |
|
|
Term
| What are the characteristics of a capitalist economy? |
|
Definition
| capitalist/market economies( market controls economic outcomes) the dominant system, which can be subdivided into authoritarian and democratic. known as exchange or modern economies because they rely on specialisation to increase production, have a large modern industrial sector and provide surpluses for exchange and investment using money as a medium. |
|
|
Term
| What are the characteristics of a socialist/command economy? |
|
Definition
| (where the state plays a major role in the operation of the economy) there are only a few in exist- think North Korea, USSR. The price mechanism performs only a limited function as the profit motive is no longer the main stimulus for production. |
|
|
Term
| socialist/market economies |
|
Definition
| Socialist market economies are a middle ground falling between the hard-core socialist command economies and the laissez-faire capitalist/market economies. The socialist/ market models allow a market driven system to operate within a centrally planned state. State-run enterprises have tended to focus more on production f capital goods where as the market-driven sector allows the catering for consumers. (think: black market) |
|
|
Term
| Compare and contrast socialist/command economies and socialist/ market economies. |
|
Definition
| Socialist/command economies run completley under a centrally planned unit with the government dictating the allocation of resources. This style of economy does not allow the price mechanism to act freely. Where as socialist/market economies have capital goods under a centrally planned unit but the production of consumer goods is manly controlled by the price mechanism. This can create a black-market like system |
|
|
Term
| What is institutional development? |
|
Definition
- a legal system that enacts and enforces coherent set of commercial laws, consistently and without fear or favour
- a stable, independent and viable financial system
- a social wel-fare system |
|
|
Term
| Why is institutional development essential for economic development? |
|
Definition
| This is important as to build the public trust and respect for the law. A trust in the government as to undermine corruption. Also a social welfare system deters people in an unemployed low socio-economic state from rioting or breaking laws. Builds respect, trust and deters public riots. |
|
|
Term
| What are the Millennium Development Goals? |
|
Definition
| Eradicate extreme poverty and hunger; Achieve universal primary education; Promote gender equality and empower women; Reduce child mortality; Improve chid mortality; Combat HIV/AIDS, malaria, and other diseases; Ensure environmental sustainability; Develop a global partnership for development |
|
|
Term
| How successful have the Millennium Development Goals since they where created in 2004? |
|
Definition
- progress towards the reduction in poverty levels remain high with progress slow or negative
- They have been slow and none have currently been reached |
|
|
Term
| What is the difference between "poverty" in a developing and developed country? |
|
Definition
| Poverty in a developing country is known as true poverty- where basic life essentials are not afforded such as food, clothing and shelter. Developed country poverty is poverty realitive to the income of the country where people may have trouble affording petrol, rent, schooling or clothing. |
|
|
Term
| What is the vicious cycle of poverty and how does it explain why countries remain poor? |
|
Definition
| poor families become trapped in poverty for at least three generations, for enough time that the family includes no surviving ancestors who possess and can transmit the intellectual, social, and cultural capital necessary to stay out of or escape poverty. Where people do not obtain the necessary education, cultural or social capacities or drive to escape from poverty. |
|
|
Term
| Unequal distribution of natural resources |
|
Definition
- nations are not endowed with the same quantity an quality of natural resources.
- Minerals
- Farming land
- oil |
|
|
Term
| Unequal distribution of capital and technology |
|
Definition
implemention of capital-intensive techniques in all types of production resulted in exponential growth in nations able to support capital and technological leaps
- well established capital infrastructures are able to maintain higher rates of production using modern machinery at rates that developing traditional methods of third world countries are not able to compete with |
|
|
Term
| Unequal distribution of human skills |
|
Definition
Human Capital: nations expenditure on education and health facilities can be interpreted as investment in human capital.
- advanced economies have populations in which the proportion of skilled labour is higher then in developing countries
- allowed advanced economies to diversity production and to initiate and absorb technological change
- resulting in many nations having to rely on counterparts for the provision of goods and services that they do not have the skill and enterprise to produce domestically |
|
|
Term
|
Definition
refers to the features of social relations, family and peer networks within a nation.
- with the advancement of technology as economic growth takes hold family life changes
- wealth maximisation- the expense of social interaction
-declining rural population with a growing urbanised population |
|
|
Term
|
Definition
refers to the artistic and creative traditions and history that are characteristic of a people.
- during times of rapid economic growth traditions and culture can be over looked, leading to an erosion of traditional lifestyles and values
- measured by the rate of urbanisation in almost every nation |
|
|
Term
|
Definition
Nations are endowed with different levels of natural resources wealth.
- re-newable or non-renewable
- access to natural resource wealth can give a nation a great natural advantage
- less developed nations can rely on forests, agricultural land and water |
|
|
Term
| Why is trade preferable to aid from the developed world to the developing world? |
|
Definition
| Trade is preferable to aid from developed to developing countries as it lets poorer countries access to a much wealthier and wider market then can be found domestically. This enables the growth of individual businesses |
|
|
Term
| What factors made trade between the developed and the developing world difficult? |
|
Definition
| Trade is made difficult between the developing and developed worlds by restrictions placed on foreign goods and services in order to protect local developed farmers and producers and goods and services would be much cheaper if they were from the developing world and therefore putting local producers out of business |
|
|
