Unit 3 - Hexagonal Thinking Review Flashcards

Vocabulary flashcards for Unit 3 - Hexagonal Thinking Review.

Free Trade

Trade without tariffs, quotas, or other restrictions.

Gold Standard

A monetary system where a country's currency is directly linked to gold.

Great Depression

A severe worldwide economic depression that took place during the 1930s.

Commodity Money

Money that has intrinsic value based on the material it is made of (e.g., gold, silver).

Trade Protectionism

Government policies that restrict international trade to protect domestic industries.

Imports

Goods and services purchased from abroad.

Representative Money

Money that is backed by a physical commodity, such as gold or silver, but is not made of that commodity.

Deflation

A decrease in the general price level of goods and services.

M1

A measure of the money supply that includes the most liquid assets, such as cash, checking accounts, and traveler's checks.

Monopoly

A market structure where a single firm dominates the entire market.

Exports

Goods and services sold to foreign countries.

Fractional Reserve Banking

A banking system in which banks hold only a fraction of their deposits in reserve and lend out the remainder.

Inflation

A general increase in the prices of goods and services in an economy over a period of time.

Fiat Money

Money that is declared legal tender by a government and is not backed by a physical commodity.

World Trade Organization (WTO)

An international organization that regulates international trade.

Recession

A period of temporary economic decline during which trade and industrial activity are reduced.

GDP

The total value of goods produced and services provided in a country during one year.

Trade Surplus

When a country's exports exceed its imports.

The Federal Reserve

The central bank of the United States.

Consumer Confidence

A measure of how optimistic consumers are about the overall state of the economy and their personal financial situations.

M2

A measure of the money supply that includes M1 plus savings accounts, money market accounts, and other less liquid assets.

Trade Deficit

When a country's imports exceed its exports.

FDIC

Federal Deposit Insurance Corporation: insures deposits in banks and thrift institutions.

Globalization

The increasing interconnectedness and interdependence of countries through trade, investment, migration, and other factors.

Corporation

A legal entity separate from its owners, with its own rights and liabilities.

Silicon Valley Bank

A bank that failed in 2023 due to a bank run, highlighting risks in the banking system.

U.S Steel

A major American steel producer, important in industrial history.

Standard Oil

A historically dominant oil company that was broken up due to antitrust violations.

The New Deal

A series of programs and projects undertaken by President Franklin D. Roosevelt in the United States between 1933 and 1939 in response to the Great Depression.

Savings and Loans Institutions

Financial institutions that primarily provide mortgage loans and accept savings deposits.

Stimulus Package

A set of economic policies implemented by a government to stimulate economic growth during a recession.

Fiscal Policy

Government spending and taxation policies used to influence the economy.

Sanctions

Economic penalties imposed on a country to influence its policies.

Wildcat Banking

Refers to the period of unstable banking practices in the United States before the Civil War.

Mcdonaldization

The process by which the principles of the fast-food restaurant are coming to dominate more and more sectors of American society as well as of the rest of the world.

Collusive Oligarchy

A market structure where a small number of firms cooperate to restrict competition and increase profits.

Competitive Oligarchy

A market structure where a small number of firms compete with each other.

Perfect Competition

A market structure characterized by a large number of small firms, homogeneous products, and free entry and exit.

Consumer Price Index

A measure of the average change over time in the prices paid by urban consumers for a basket of consumer goods and services.

Hyperinflation

Extremely rapid or out of control inflation.