Exam 4 - American Economy

rules and norms that govern behavior

voting political parties congress

the relationship between political and economic institutions in a particular country as well as the policies and outcomes they create

TRUE

FALSE each system is used to achieve different ends

• capitalism • socialism • communism • mercantilism

FALSE there are different varieties of capitalism in capitalist countries

where exchange of goods or service occurs

something that is owned by an individual (private). can be land, good, intellectual

something that is available to everyone (cannot be restricted) and whose consumption does not reduce its availability from others.

• air • freeways • natural defense

government spending to redistribute wealth to provide for public goods

• SNAP • public schools • highways • funding for national parks

no barrier to trade, trade with anyone

• makes trade expensive • makes trade unequal

the total value of all goods and services produced in ONE YEAR

• used to see if the overall economy is growing from year to year • used to compare growth with other countries

does not tell us how this growth is distributed

is the average of the economy

its assumes that every person has contributed equally and has a fair share

distribution is not always equal

• tariffs • non-tariff barriers

ways to make trade harder that are not taxes

quotas & embargo