POLS 2401 Study Guide - Midterm Guide: Gross National Income, Gross Domestic Product, Economic System
10 Jan 2019
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Trade (what is it, why do economies trade with each other, what is import/export) Trade is the buying and selling of goods and services. When, on their own, they do not have the resources, or capacity to satisfy their own needs and wants. Import: to bring (goods or services) into a country from abroad for sale. Export: send (goods or services) to another country for sale. Economic systems (mercantilism, mixed economy/keynesianism, capitalism/liberal economics/free market, socialism/communism) Mercantilism - economic system aimed at self-reliance and strengthening the national economy by accumulating bullion, gaining colonies, and establishing a favorable balance of trade. Mixed economy - an economy in which there is a blend of economic systems; individuals and the government share in the decision-making process. Keynesianism - the belief the government must manage the economy by spending more money when in a recession and cutting spending when there is inflation. Capitalism - an economic system based on private property and free enterprise.
