Intro to Comparative Politics Midterm 2

Political Economy

the study of the interaction between states and markets

Markets

the interaction between the forces of supply and demand that allocates resources

property

the ownership of anything tangible or intangible; includes but is not limited to land, buildings, businesses or personal items

public goods

goods, provided or secured by the state, available to society,a nd which no private person or organization can own

social expenditures

state provision of public benefits, such as education, health care and transportation

gross domestic product (GDP)

the total market value of all goods and services produced by a country over a period of one year

central bank

the state institution that controls how much money is flowing through the economy as well as how much it costs to borrow money in that economy

inflation

an increase oin the general price level of goods and services in the economy

hyperinflation

inflation of more than 50 percent a month for more than two months in a row

deflation

a decline in the prices of goods and services

regulation

a rule or an order that sets the boundaries of a given prodcedure

monopoly

a single producer that is able to dominate the market for a good or service without effective competition

tariff

a tax on imported goods

quota

A nontariff barrier that limits the quantity of a good that may be imported into a country

nontariff regulatory barriers

polices and regulations used to limit importa through methods other than taxation

comparative advantage

the ability of one country to produce a particular good or service more efficiently relative to other countries’ efficiency in producing the same good or service

political economic system

the relationship between political and economic institutions in a particular country and the policies and outcomes they create

laissez-faire

the principle that the economy should be allowed to do what it wished; a liberal system of minimal state interference in the economy

capitalism

a system of production based on private property and free markets

mercantilism

a political-economic system in which national economic power is paramount and the domestic economy is viewed as an instrument that exists primarily to serve the needs of the state

parastatal

industry partially owned by the state

liberal

a political economic system with an emphasis on individual freedoms and economic freedom and advocates to limit state power in order to foster and protect this freedom

social democratic

accepts a role for private property and market forces but also knows that the economy needs to be checked and managed somewhat by the state

communist

everything is within the hand of the state, with the means of production collectively owned and managed to achieve equality and eliminate class distinctions.

mercantilst

a political economic system that emphasizes state intervention in the economy, focusing on accumulating wealth through trade and maintaining a favorable balance of exports over imports.

purchasing power parity

a statistical tool that attemps to estimate the buying power of income across different countries by using prices in the United States as a benchmark

Gini Index

a statistical formula that measures the amount of inequality in a society; its scale ranges from zero to 100 where zero is perfect equality and 100 is perfect inequality

economic liberalization

changes consistent with liberalism that aim to limit the power of the state and increase the power of the market and private property in an economy

democracy

a political system in which political power is exercised by the people either directly or indirectly by the people

liberal democracy

a political system that promotes participation, competition and liberty and emphasize individual freedom and civil rights

direct democracy

a form of democracy in which citizens directly participate in decision-making rather than through elected representatives.

indirect democracy

a system of governance in which citizens elect representatives to make decisions on their behalf, as opposed to participating directly in legislative or administrative processes.

republicanism

indirect democracy that emphasizes the separation of powers within a state and the represenation of the public through elected officials

separation of powers

the clear division of power among different branches of government and the provision that specfic branches may check the power of other branches

civil society

organizations outside of the state that help people define and advance their own interests

executive

the branch of government that carries out the laws and polices of a state

head of state

the executive role that symbolizes and represents the people both nationally and Internationally

head of government

the executive role that deals with the everyday tasks of running the state, such as formulating and executing policy

legislature

the branch of government charged with making laws

bicameral system

a political system in which the legiuslature comprises of two houses

unicameral system

a political system in which the legislature comprises one house

rule of law

a system in which all individuals and groups, including those in government, are subject to the law, irrespective of their power or authority

constitutional court

the highest judicial body in a political system that decides whether laws and polices violate the constitution

judicial review

the mechanism by which courts can review the actions of the government and overturn those that violate the constitution

concrete review

judicial review that allows the constitutional court to rule on the basis of actual legal disputes brought before it

abstract review

judicial review that allows the constitutional court to rule on questions that do not arise from actual legal disputes.

parliamentary system

a politcla system in which the roles of head of state and head of government are assigned to separate executive offices

vote of no confidence

vote taken by a legislature as to whether its members continue to support the current prime minister; depending on the country, a vote of no confidence can force the resignation of the prime minister and/or lead to a new parliamentary elections

presidential system

a political system in which the roles of head of state and head of government are combined in one executive office

semi-presidential system

an executive system that divides power between two strong executives, a president and a prime minister

poltical parties

important organizations that bring together diverse groups of people and ideas under the umbrella of an ideological mandate

electoral systems

a set of rules that govern how votes are cast, counted and translated into seats in a legislature