Capitalism

TNC

Transnational Corporation

GDP

Gross Domestic Product

Two Countries Known as Asian Tigers

Infrastructure

The essential networks, often physically, required to foster economic activity (such as bridges, roads, phones, electricity, water)

Tax Haven

An area that seeks to attract foreign business using low taxes/regulations

Intellectual Property Rights

Legal protections for a creator’s work

Purchasing Power Parity

A method of translating foreign currencies to make values comparable

T or F: by most measures, about ¾ of income inequality in the world is between nations, not within them.

True?

T or F: In 2015, about 22% of US children were living in poverty.

True?

T or F: abundant natural resources virtually guarantee a nation’s rapid economic development

False

Microeconomics

Economic decisions and relations arising between the people and the firms

(Schumpeter, Smith, Marx)

Macroeconomics

A broad study of economy emphasizing macro-entities like TNCs, states, and governments regarding their economic decisions on a global scale

Laissez-Faire

An economic approach emphasizing less government involvement in economic by favoring self-regulating markets

Old Middle Class

An economic class in which the people own the capital but do not employ wage labor (EX: artisans)

Division of Labor

An organization of products and tasks assigned to complete production (organizes workers to complete tasks)

Wealth

An accumulation of profits and assets

Property Rights

An established understanding (legally binding) arising from the Magna Carta that details the lines and boundaries of ownership to provide rights to control if private

Self-Interest

A tendency to uphold preferences benefitting oneself

Long Swing

Proposes economy experiences growth over an approximate 20-50 year period, which includes an expansive breakthrough in technology growth and knowledge (consolidation) followed a period of stagnation / decline (decay)

Investment

Seeking to improve by providing capital for updates

Surplus

An excess of inputs or outputs after capitalist labor production

Adam Smith, Wealth of Nations

Name the great economist, _____, who first advocated for the Economic Man, and name his most widely read book discussing the topic ______.

T or F: In a capitalist economy, the way the surplus (profits) are typically used does not produce rapid change

False

T or F: Humans are unique among animals in that large numbers of unrelated people cooperate to produce the goods and services we require

True

T or F: In the 19th century, the sale of western lands and tariffs were the two chief sources of revenue for the US government

True

3 Elements of Capitalism

Competition, Command, Change