Econ Notes

Econ Notes - Econ Notes Ch 2 Exports- goods leaving a...

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Econ Notes Ch 2 Exports- goods leaving a country Imports- goods coming into the country Gross domestic product (GDP)- a measure of annual output of goods and services Gross national product (GNP)- a measure of annual output of goods and services Theory of competitive advantage- trading leaves both parties better off, nations specialize in what they can produce efficiently and trade that product to other nations for what they do best Opportunity cost- what someone gives up by making a choice to do something else Quotas- limits on the number of goods and services imported Tariffs- taxes on imported goods and services Protectionism- putting up barriers to imports to increase production in domestic industries Free trade- no obstacles to free flow of goods and services between countries Fair trade- for free trade to occur, countries need to be guaranteed full access to all markets Exchange rate- the rate at which one country’s currency exchanges for another, fluctuates Ch 3 Economic system- the ways in which people organize themselves for the production and distribution of goods and services, the mode of life of any society Economic development- progressive changes in a society’s ability to meet its economic tasks of production and distribution Surplus- more output than necessary for subsistence consumption Economic growth- experienced through the generation and usage of economic surplus Production- activity that takes resources and transforms them into goods and services Factors of production- resources like land, labor, and capital Land- includes raw materials and place where productive activity happens Labor- physical and mental effort of people that is necessary for all production Capital- includes technology, building, machinery, equipment used in production, financial resources necessary to organize production Consumption- using up produced goods and services
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Distribution- the manner in which goods/services are apportioned among the people of a society Precursors of Feudalism- ancient empires of Egypt, Greece, Rome, agricultural societies that produced just enough food for continued subsistence, tradition and custom were responsible for organizing production/distribution, children followed in footsteps of parents Feudalism- economic system that dominated Western Europe throughout Middle Ages, consisted of serfs who provided money, food, labor, or military allegiance in exchange for right to use land and military protection from the lords, broke down due to new technology, urbanization, merchants, crusades (exploration), creation of nation-states, replacement of guilds with putting- out system, protestant challenge to catholic church, rise of individualism, enclosure movement,
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This note was uploaded on 04/07/2008 for the course ECON 103 taught by Professor Shackelford during the Spring '08 term at Bucknell.

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Econ Notes - Econ Notes Ch 2 Exports- goods leaving a...

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