Term
| Define and explain 3 types of capital |
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Definition
Human: education and health
Physical: already manufactured and tangible assets
Social: networks and cooperation between groups |
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Term
| How does democracy constrain leaders? |
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Definition
A) limits on executive power. B) rotation in office. C) competetive elections. D) power sharing between branches of governement
((all of the above)) |
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Term
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Definition
The ability of a government to impelement its policy preferences.
The ability of a government to provide critical services to its population.
The ability of a government to control its population. |
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Term
| What are Kaufmann's 6 elements of governance? |
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Definition
| -voice and accountability -political instability and violence -government effectivness -regulatory burden -rule of law -graft |
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Term
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Definition
| cooruption or bribery -- ex. an official using their position to elicit additional monies from the population-->charging a fee for mail delivery, a business licences, building permits. |
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Term
| How can the governments eliminate graft? |
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Definition
| A) prosecute the offenders. B) increase salaries for government employees. C) increase merit based promotion systems for government employees ((ALL OF THE ABOVE)) |
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Term
| Why are the democratic leaders more likely to respond to human rights violations that authoritarian leaders? |
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Definition
| They want to stay in office |
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Term
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Definition
| ciricumstances where governemnts generate the majority of their revenues from a high value resource. ex. oil; these decrease the incentive for government to be responsive to populations and often decrease investments on concerns on other sectors of the economy. |
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Term
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Definition
| a tax levied by a government on imports |
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Term
| According to dependency theory why do less developed countries become increasingly unequal as globalization increases? |
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Definition
| trade results in the selling of primary commodities and purchase of manufactured goods (redistribution of wealth). This results in increasing inequality and comparative advantages shifting from the developing countries to specialized developed countries. |
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Term
| Those espousing free trade policies would prefer which type of market system? |
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Definition
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Term
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Definition
"institutions are the humanly devised constraints that structure human interaction. They are made up of formal consraints, informal constraints, and their enforcement characteristics. Together they define the incentive structure of societies and specifically economies" --North
a) rule of law b) norms behavior and conventions |
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Term
| What type of geographical differences, according to Jared Diamond, influence the ability of a country to develop? |
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Definition
Trade barriers: mountains, lack of access to ports and waterways.
Climate: limits types of crops and possibility of agricultural settlement.
Resource Availability: those in year round temperate climates don't have the same incentives to increase production as those in harsh climates. |
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Term
| What is comparative advantage? |
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Definition
| Two countries will gain from trade if in the absence of trade, they have different costs of producing goods. |
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Term
| Describe a "liberal trade policy" |
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Definition
| free trade: little to no government intervention in trade, few tariffs, quotas or non-tariff trade barriers. |
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Term
| Why would a government keep their currency devalued? |
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Definition
| To increase export competitiveness, decrease domestic purchasing power (social control) |
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Term
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Definition
| policy related to how the government manages its allocations and expenditures, revenue and taxation |
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Term
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Definition
| Microfinance extends banking and credit oppertunities to populations who otherwise would not have access to regular banking services (typically due to self employment, income levels, or rural residence) in developing countries. |
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Term
| What are possible downsides to fair trade? |
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Definition
| There is no international certification standard, certification can be expensive, and it can crowed out small producers. |
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Term
| What are ways in which a state can build capacity? |
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Definition
| Increase or utilize resources, conflict, crisis, and elite preferenes, or extend services. |
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Term
| What reasons contribute to Jamacian farmers being unable to compete with foreign producers in their own market? |
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Definition
| IMF structural adjustment programs that required the elimination of subsidies and trade barriers, scale of production, subsidized imported goods (milk powder), and high wage/high land prices. |
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Term
| [blank] exchange rate regimes are fixed to a single currency or basket of currencies. |
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Definition
| pegged or fixed exchange rate regimes. (this is what the paper said, but i think the answer is just pegged) |
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Term
| What ways can government manipulate the economy through monetary policy? |
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Definition
| After the ratio of domestic currency to foreign reserves, manipulate the supply of money or demand, defending the currency, seniorage, inflation |
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Term
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Definition
| Monetary policy is the actions of a central bank, currency coard, or the regulatory authority that determines the size of the money supply in circulation. |
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Term
| Describe differences in terms of colonial policy and post colonialinstitutional development |
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Definition
Extractive states (for example Congo, Nigeria, Tunisia): -No protection of private property (or protections only extended to elites). -no checks and balances in government. -Confiscatory Taxation.
Neo-europes: US, New Zealand, Australia, Canada:
-Protection of private property. -Rule of law.
Feesibility of settlement determined the probability of early institutional development and early institutions influence current institutions |
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Term
| Which of the following are structural adjustment policies? |
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Definition
A) cut spending. B)privatization. C) decrease bureaurcracy.
((ALL OF THE ABOVE)) |
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Term
| Name three consequences of austerity measures. |
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Definition
| Rising unemployment, bank faliures, decreased purchasing power (also decreased wages and increased taxation) |
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