Flashcards
global issues 2
Cards in this deck (30)
- 1commerceexchange of goods and services
- 2free tradeagreement between countries for commerce without taxes
- 3does fair trade work? why?no, because the price is above the equilibrium point. People are willing to produce more but customers are not willing to buy more
- 4what happens in a market in which the price is above the equilibrium point?there will be a surplus
(more supply than demand) - 5moneymedium of exchange for goods and services
- 6what is the value of money?it depends on the quantity of money in the market and the production
- 7FIAT moneymoney that has no goal. It means the supply money depends on the central bank. if they print too much the value of money will fall and things will get cheaper
- 8what is inflation and why is it happening?it is when the price of goods and services rise because central banks interest also rise and because money is worth less.
it happens when a lot of money is printed - 9povertythe condition where people have no access to one or more needs. If you can't access food, water, home, education it means you are poor
- 10why is poverty happening in a world which is always improving production?accesibility to technology
Because each country has different accessibility to technology and machinery production costs vary and this will change the profit each country makes. - 11GDPGross Domestic Product
All the goods and services produced in a country in a determined amount of time. It measures production - 12what id GDP per capitaGDP of each country divided by population
- 13Why do we say that GDP is not quality but quantity?Because it measures quantity, not welfare
- 14How does the central bank fight inflation?it rises the interest rate. it wants private banks to demand less money so they have to produce less money and money's value can rise
- 15Demandwillingness of all consumers to buy something in the market
- 16Supplywillingness of producers to satisfy the demand of costumers
- 17why is there so much informality in the labor market in Mexico?because the minimum wage is under the equilibrium price
- 18globalizationeconomic process un which technology communication is easy, free trades are growing and we have more access to goods and services around the world.
Disadvantages: negative externality (production or consumption of a product results un a cost to a third party) nature - 19what is minimum wage and who stablishes it?minimum salary in each country. It is established by the government, enterprises have to pay their employees at least the wage established by the government
- 20labor market and unemployement in developed countriesin developed countries the minimum wage is above the equilibrium point so there is less unemployement
- 21labor market and unemployement in less developed countriesthe minimum wage is under the equilibrium point so there will be more unemployement and people will look for alternatives to gain more money (move to a developed country, start an informal business)
- 22SPISocial progress index
it measures a country performance on many aspects of socual and environmental performance. Countries fulfill basic human needs. - 23Ceteris paribuseverything without change
- 24when is the curve or function of supply and demand changing?if you work for an enterprise and they raise your loan you will spend more money so your demand rises.
- 25substitute goodsth you can change and it will have the same purpose or it will meet the same need
- 26inelastic goodgood that loses demand if the income rises
- 27equilibrium pointwhere the demand equals the supply function
- 28surplus of goodsthe supply is higher than the demand
- 29shortage of goodsthe supply is lower than the demand
- 30invisible hand (adam smith)when an enterprise has to lower the price of its goods and services to be competition of a cheaper enterprise so it can be able to make a profit
Information
- Description
- Flashcards on global issues 2, created by a b on 18/10/2022.
- Created by
- a b
- Views
- 3
- Rating