Podcast
Questions and Answers
What does the term 'inflation' refer to?
What does the term 'inflation' refer to?
Which of the following is NOT a pillar to promote economic development?
Which of the following is NOT a pillar to promote economic development?
Which method is NOT typically mentioned as a source for countries to secure funding?
Which method is NOT typically mentioned as a source for countries to secure funding?
What is a key factor that indicates economic development?
What is a key factor that indicates economic development?
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How is economic development commonly measured?
How is economic development commonly measured?
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What does the Gini Coefficient measure?
What does the Gini Coefficient measure?
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What does 'capital accumulation' refer to in the context of economic development?
What does 'capital accumulation' refer to in the context of economic development?
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Which among the following is a common concern regarding neoliberal economic policies?
Which among the following is a common concern regarding neoliberal economic policies?
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What does free trade essentially refer to?
What does free trade essentially refer to?
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Which of the following is NOT a factor that contributes to a state's comparative advantage?
Which of the following is NOT a factor that contributes to a state's comparative advantage?
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What does economic liberalism advocate regarding state involvement in markets?
What does economic liberalism advocate regarding state involvement in markets?
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Which of the following is an example of a non-tariff barrier to trade?
Which of the following is an example of a non-tariff barrier to trade?
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What is true regarding currency in international trade?
What is true regarding currency in international trade?
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Which of the following is an example of a government intervention in trade?
Which of the following is an example of a government intervention in trade?
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What best describes the function of national currency reserves?
What best describes the function of national currency reserves?
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What is the primary focus of international finance?
What is the primary focus of international finance?
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Study Notes
Inflation
- Inflation refers to a sustained increase in the general price level of goods and services in an economy over time.
Pillars of Economic Development
- Education, Infrastructure, Health, Good Governance, Technology
- Military Spending is not typically considered a pillar for economic development
Sources of Funding for Countries
- Foreign Direct Investment (FDI)
- Foreign Aid
- Loans from international financial institutions
- Debt Financing
- Taxation is a primary source for funding within a country, not typically mentioned for securing funding from external sources.
Economic Development Indicators
- Gross Domestic Product (GDP) per capita: A key factor indicating economic development, signifying the average income level of citizens in a country.
Measuring Economic Development
- GDP growth rate, Human Development Index (HDI), literacy rates, infant mortality rates are commonly used methods.
Gini Coefficient
- Measures income inequality within a population.
Capital Accumulation
- Refers to the increase in the stock of physical capital in an economy, such as buildings, machinery, and infrastructure, over time.
Concerns about Neoliberal Economic Policies
- Increased inequality between rich and poor is a common concern often associated with neoliberal economic policies.
Free Trade
- Free trade is a system of international trade where governments do not restrict imports or exports.
Factors of Comparative Advantage
- Natural Resources, Labor force skills
- Political Instability is not considered a contributing factor.
Economic Liberalism
- Advocates for minimal state intervention in markets, promoting free trade and competition.
Non-Tariff Trade Barriers
- Quotas, Subsidies, Technical regulations, Sanitary and phytosanitary standards
- Tariffs themselves are a type of tariff barrier.
Currency in International Trade
- Most international trade occurs through the use of a single currency, typically the US dollar, despite the existence of many other currencies globally.
Government Intervention in Trade
- Imposing tariffs on imported goods is an example of government intervention.
National Currency Reserves
- Function as a safety net to protect a country's currency against fluctuations and for meeting international financial obligations.
International Finance Focus
- Primarily focuses on global capital flows, exchange rate dynamics, and financial stability.
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