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Comparative Politics Exam II
TEXTBOOK Ch 4 & 6
53
Political Studies
Undergraduate 3
03/04/2009

Additional Political Studies Flashcards

 


 

Cards

Term
two views of economy
Definition

1. the central means by which people can achieve individual freedom

2. central means by which people can achieve collective equality

Term
Political Economy
Definition
the study of how politics and economics are related and how their relationship shapes the balance of freedom and equality
Term
markets
Definition

interactions between the forces of supply and demand & the allocation of resources through that interaction

 

*the medium through which goods and services are exchanged*

Term
Property
Definition
ownership of goods and services
Term
intellectual property
Definition
ownership of a specific type of knowledge or content
Term
public goods
Definition

those goods, provided or secured by the state, available for society and indivisible (cannot be owned by any one individual or group)

 

ie: national defense, roads

 

 

Term
goods that generate collective equality
Definition
Public Goods
Term

goods inherently linked to individual freedom

 

Definition
Private Goods
Term
Social Expenditures
Definition

the state's provision of public benefits, provided by state to those who are in adverse circumstances

 

ie: education

healthcare

transportation

or "welfare"

Term
taxation
Definition
the means by which state collects funds to pay for public goods and services which benefit the public directly
Term
2 views of taxation
Definition

1. greedy state takes hard-earned revenues of its citizen

2. a critical tool for generating a basic level of collective equality

Term
money
Definition

simply a medium of exchange

-an instrument through which people conduct economic transactions

Term
wealth
Definition
consists of property that has value
Term
central bank
Definition

institution that controls how much money is flowing through economy & how much it costs to borrow money in that economy

 -controls interest rates

*U.S. Federal Reserve = U.S. central bank

Term
national interest rate
Definition
the rate charged to private banks when they need to borrow funds from central bank or one another
Term

if central bank ↓ interest rates charged to banks

(5 steps)

Definition

-banks ↓ their interest rates for business&ppl

-loans become cheaper, saving less lucrative

-causes people to borrow & spend more

=

-increase in amount of $ in economy

STIMULATING economic growth

Term

if central bank ↑ interest rates to banks

(5 steps)

Definition

-banks ↑ interest rates

-loans become more expensive, saving is important

-people borrow less & save more

-decrease of money supply in economy

=

SLOWING economic growth 

Term
central bank ↓ interest rates
Definition
stimulates economic growth
Term
central bank ↑ interest rates
Definition
slows economic growth
Term
inflation
Definition

too much money chasing after too few goods

-prices begin to rise and money loses its value

 

Term
hyperinflation
Definition

-inflation that is more than 50% a month for more than two moths in a row

-occurs when govt lacks tax revenues needed to carry out basic tasks

Term
↑ inflation requires ? in interest rates
Definition
↑ inflation requires ↑ in interest rates
Term
↑ unemployment requires ? interest rates
Definition
↑ unemployment requires ↓ interest rates
Term
deflation
Definition
too many goods chasing too little money
Term
unemployment
Definition
part of labor force without work but available and seeking employment
Term

regulations

(indirect/specific)

Definition

rules or orders that set boundaries of a given procedure

-indirect; safety or environmental regulations affecting how business is run

-specific; area of competition and innovation

Term
monopoly
Definition

a single producer of a good or service that is able to dominate the market

-can control prices by limiting supplies

Term
cartel
Definition

a group of producers that, individually are unable to dominate a market, but in collaboration with one another can.

-can control prices by limiting supplies

Term
monopoly example
Definition
Microsoft
Term
cartel example
Definition

OPEC

Organization of Petroleum Exporting Countries

Term
trade
Definition
state management of sale of goods & services domestically AND internationally
Term
tools of trade regulation
Definition

tariffs

quotas

non-tariff barriers

Term
tariffs
Definition
taxes on imported goods
Term
quotas
Definition
limit the quantity of a good coming into the country
Term
non-tariff barrier
Definition

limit imports through methods other than taxation

ie: health & safety regulation

Term
4 reasons to regulate trade
Definition

1. generate state revenue

2. foster local industry

3. protect local jobs

4. keep wealth in the country

Term
3 reasons NOT to regulate trade
Definition

1. promote competition

2. keep the costs of goods low

3. stimulate domestic innovation--> comparative advantage

Term
Comparative advantage
Definition
the ability to produce a particular good or service more efficiently than another countries ability to produce the same thing
Term

states regulate & protect _____ & _____

to prevent _____&_____

Definition

regulate & protect markets & property

to prevent monopoly or cartels

Term
political-economic system
Definition

the actual relationship between political and economic institutions in a particular country

as well as

the policies and outcomes they create

Term
4 political-economic systems
Definition

liberalism

social democracy

communism

mercantilism

Term
capitalism
Definition
system of production based on private ownership and free markets
Term
laissez-faire
Definition

the economy should be "allowed to do" what it wishes

-state should only intervene to defend public when crises arises

Term

(old material)

liberalism as political ideology

Definition

-high priority on individual political & economic freedom

-limit state power for greater individual & market freedoms

 

 

Term

Liberalism as political-economic system

(6 characteristics)

Definition

-weak state

-laissez faire

-little regulation to encourage competition & innovation--> capitalism

-free market 

-social expenditures dramatically restricted

-property rights expanded & protected

Term

Liberalism

as political-economic system

Definition

emphasis on individual freedoms over collective equality & on power of markets over state

-state involvement in economy & society is relatively low

Term

examples of liberalism

political-economic system

Definition

USA

U.K

Canada

Australia

New Zealand

Term

Social Democracy

as political-economic system

Definition

-balance of individual freedom& collective equality

-state is seen less as threat and more as creator of positive social rights& foundation of collectiv equality

-trade & competition under state management

Term
neocorporatism
Definition

system of policy making involving the state, labor and businesses building consensus over competition

-common in social democratic systems

Term

examples of Social Democracy

as political economic system

Definition

France

Germany

Sweden

Denmark

Term
GDP
Definition
total market value of all goods and services produced within a country over a period of one year
Term
PPP
Definition

Purchasing Power Parity

attempts to estimate buying power of income in each country by comparing similar costs using prices in the US as a benchmark

Term
4 East Asian Tigers
Definition
Singapore, Taiwan, S. Korea, Hong Kong
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