Chapter 3 PPT: Political Economy

Flashcards covering key concepts related to national differences in economic development.

What determines the level of economic development of a nation?

Gross domestic product (GDP), purchasing power parity (PPP), economic growth rates, political stability, and legal systems.

What significant change has occurred in Vietnam's economy since 1986?

Shift from a centrally planned socialist economy to market oriented system

What are the three trends in political economy since the late 1980s?

Democratic revolutions, shift from planned to free market economies, rise of authoritarianism in some nations

What is the Human Development Index (HDI)?

A measure created by the UN of development based on life expectancy, education attainment, and income sufficient to meet basic needs

What is the impact of innovation and entrepreneurship on economic growth?

They drive long-term growth through new products and processes

What is the relationship between property rights and economic development?

Strong property rights are necessary for people to profit fostering economic development

How do geography and education influence economic development?

Trade opportunities and faster economic growth

What key challenges do transition economies face?

Debt, corruption, and political control

What is the difference of GDP and PPP data?

GDP measures of economic performance while PPP accurately compares living standards

How do political systems impact economic progress?

Democracies are more prone to economic growth than authoritarian regimes