US Income Inequality and Trade Dynamics

These flashcards cover key vocabulary terms related to the dynamics of US income inequality and trade as discussed in the lecture notes.

Income Inequality

The unequal distribution of income within a population.

Free Trade Agreements

Treaties between countries that reduce barriers to trade, such as tariffs, to promote economic cooperation and growth.

Globalisation

The process of increased interconnectedness and interdependence among countries, often resulting in the movement of goods, services, and labor across borders.

Wage Inequality

The disparity in income earned among different groups of workers, often based on skill, education, or job type.

Sophisticated Goods

Products that require high skills and advanced technology to produce, often imported from developed nations.

Displacement

The loss of jobs or income for certain workers due to competition from imports or changes in market conditions.

Specialisation

The process by which individuals or groups focus on a specific area of production or service, leading to efficiency and expertise.

Unit Values

The average price of goods that can indicate the complexity and quality of products being produced.

Economic Growth

An increase in the production of economic goods and services, typically measured by GDP.

Median Wage

The middle point of wage distribution, where half of workers earn more and half earn less.