| A | B |
|---|
| aggregate demand | total demand for goods and services in an economy |
| aggregate supply | total supply of goods and services in an economy |
| bourgeoisie | group in a society that carries on commerce and industry ( the middle class; distinct from landowners, wage earners, farmers) |
| deficit spending | practice where a government spends more money that it receives as revenue. Usually refers to the conscious effort to stimulate economic growth by lowering taxes or increasing government expenditures |
| devaluation | official reduction in the exchange value of a currency by lowering its gold equivalency or its value relative to another currency |
| diversification | a variety of exports including industrial and agricultural goods; can generate wealth and a favorable balance of trade for a country |
| economic growth | increase in a nations GNP ( 4-5 % a year is considered good) |
| economic warfare | using a variety of economic means (sanctions, embargos, tariffs) to hurt the economy of a rival nation(s) |
| embargo | government order prohibiting the entry or departure of commercial ships, or planes. Also refers to any restriction imposed on commerce by law. |
| favorable/unfavorable balance of trade | when a nation exports more than it imports; or the reverse |
| free trade | trade carried on without government regulation, especially international trade |
| free trade area (FTA) | territory covered by a economic cooperative arrangement among two or more nations |
| globalization | movement of nations toward more and more economic interdependence |
| G-7 | seven most industrialized nations (USA, UK, FR, Ger., Italy, Japan, Canada) |
| GDP | gross domestic product ( only within a nation) |
| GNP | gross national product (everywhere) |
| heavily indebted poor countries (HIPCs) | nations facing unsustainable debt burdens, but have tried to reform according to the IMF |
| infrastructure | the structure that underlies and makes possible all economic activity in a country (communications, roads, bridges, schools, etc…) |
| International Monetary Fund | based in Washington, DC; provides financial advice and funding to countries that are experiencing debt payment difficulties |
| laissez-faire | hand off” free market economic system; most associated with capitalism |
| megacity | urban area over 10 mil. People |
| monocultural exportation | a nation being too dependant on one major crop; leads to poverty |
| most favored nation (MFN) | economic treaty between two nations where one offers the best deal to the other; usually reciprocated (ex: USA and China) |
| nationalize | to take over ownership by a national government |
| NAFTA | North American Free Trade Agreement (1994) (USA, Canada, Mexico) 2nd largest free-trade area (EU 1st) in the world |
| per capita income | wealth of a nation (GNP) divided among its population |
| private sector | part of the economy NOT involved with the public sector (government) |
| privatization | transferring government ownership to individuals |
| protectionism | protecting domestic manufacturers from foreign competition by imposing tariffs and quotas on imported goods |
| sanctions | a coercive economic measure, usually adopted by several nations, for forcing a country resisting international law to desist or yield to adjudication |
| standard of living | quality of life of a nation based on goods and services available to the population |
| tariff | a “tax” imposed by a government on imported or exported goods |
| World Bank | a multinational lending agency that tried to reduce poverty by promoting sustainable economic growth for nations in assistance |
| World Trade Organization (WTO) | est. in 1995; a multinational organization that helps regulate and promote global trade issues |
| Global Stratification | Refers to the unequal distribution of wealth, power, and prestige on a global or societal basis |
| Social Stratification | The hierarchical arrangement of large social groups (classes) based on their control over basic resources |
| social mobility | The movement of individuals or groups from one level in a stratified system to another |
| Intergenerational Mobility | Movement of people from one generation to the next |
| Intragenerational Mobility | Movement of individuals within their own lifetime |
| Slavery | Form of extreme closed system |
| Caste system | System of social inequality based on people’s status determined by birth |
| Class system | Type of stratification based on ownership and control of resources or based on income and type or work, mobility can be upward or downward |
| Low-Income | per capita GNP of $825 or less |
| Middle-Income | per capita GNP of $825 to $10,000 |
| High-Income | per capita GNP of $10,000 and up |
| Absolute Poverty | people do not have the means to secure the most basic life necessities (food, clean water, adequate shelter) |
| Relative Poverty | people can afford basic life necessary but not an average standard of living for their society |
| Subjective Poverty | measuring and comparing actual income/wealth against a person’s expectations and perceptions |
| Drugs | largest; 50 bill/year |
| Weapons | 2nd largest |
| Smuggling (goods and people) | 3rd largest |
| Traffic and sale of Wemon and children | 4th largest; 27 mill in the world; most in bonded labor or debt; most used in prostitution or manual labor |
| Traffic and sale of human body parts | 5th largest; used for medical industry and transplants |
| India | Lack of education; Lack of political rights; Son is a preference; Dowry; No “adolescence”; Environmental resources |
| Japan | Decline birthrates; Work maintain lifestyle; Cost of childcare; Crisis cost of: Healthcare, Retirement, No tax money |
| Sub-Sahara Africa | No Health services; Orphans; Rise: Crime, Conflict |
