Global Issues Test 3

  1. Describe the income inequality index.
    • 0-equal share of country's income
    • 1-most of country's wealth in hand of few
  2. An economy where the freedom for private powers exist at the expense of public power, or government
  3. What are some of the characteristics of a coordinated economy?
    • most European countries
    • less risk, more stability
    • government ownership of "vital" industries
    • labor unions are more common
  4. An economy unable to overcome the power of elites
  5. Two terms describing how much a country makes in a year
    • Gross Domestic Product
    • Gross National Product
  6. ____ is a function of supply and demand in any open market.
  7. What are Americans better at in terms of production?
    • rapid innovation
    • mass production
    • compete in price
  8. What are Europeans better at in terms of production?
    • better at fine tuning high quality
    • niche products
    • compete in quality
  9. What are some characteristics of American public policy?
    • High educational spending
    • Low support for working families
    • Private, rather than public, services
    • Tax breaks, not income support
    • Low taxation, low spending
  10. Lots of Capital and Little Labor (semiconductors)
    Capital Abundant
  11. Lot of Labor and Little Capital (Apparel)
    Labor Abundant
  12. Comparitive advantage tell us that...
    • Every country
    • has a comparitive advantage in something
    • can gain by specializing in what it does competitively well and trading for what it does less well
  13. Countries abundant in labor....
    have a comparitive advantage in labor intensive goods (and vice versa)
Card Set
Global Issues Test 3
GI 3