Podcast
Questions and Answers
What does the term 'inflation' refer to?
What does the term 'inflation' refer to?
- Increase in the price of goods and services. (correct)
- Stability in the market prices.
- Increase in the value of currency.
- Decrease in the price of goods and services.
Which of the following is NOT a pillar to promote economic development?
Which of the following is NOT a pillar to promote economic development?
- Tariff restrictions (correct)
- Finance
- Austerity measures
- Trade
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?
- World Bank & IMF Loans
- Foreign Direct Investment (FDI)
- Foreign Aid
- Domestic taxation (correct)
What is a key factor that indicates economic development?
What is a key factor that indicates economic development?
How is economic development commonly measured?
How is economic development commonly measured?
What does the Gini Coefficient measure?
What does the Gini Coefficient measure?
What does 'capital accumulation' refer to in the context of economic development?
What does 'capital accumulation' refer to in the context of economic development?
Which among the following is a common concern regarding neoliberal economic policies?
Which among the following is a common concern regarding neoliberal economic policies?
What does free trade essentially refer to?
What does free trade essentially refer to?
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?
What does economic liberalism advocate regarding state involvement in markets?
What does economic liberalism advocate regarding state involvement in markets?
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?
What is true regarding currency in international trade?
What is true regarding currency in international trade?
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?
What best describes the function of national currency reserves?
What best describes the function of national currency reserves?
What is the primary focus of international finance?
What is the primary focus of international finance?
Flashcards
Free Trade
Free Trade
Trade without barriers.
Comparative Advantage
Comparative Advantage
Countries' natural advantages in producing goods due to resources, labor, tech, or location.
Economic Liberalism
Economic Liberalism
The belief that the market sets prices well. States should have minimal involvement in trade.
Government Intervention (Trade)
Government Intervention (Trade)
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Tariffs
Tariffs
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Currency
Currency
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Foreign Exchange
Foreign Exchange
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Currency Reserves
Currency Reserves
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Exchange Rates
Exchange Rates
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Inflation
Inflation
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Economic Development
Economic Development
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GDP/capita
GDP/capita
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Development Measurement
Development Measurement
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Development Promotion
Development Promotion
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Funding Development
Funding Development
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Neoliberal Economic Policy
Neoliberal Economic Policy
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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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