Term
| Schools of economic Thought |
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Definition
1. Mercantilist
2. Classic Liberal
3. Communist |
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Term
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Definition
Leader and roots: Rev. Robert Filmen; divine rights of kings; god is ruler of subjects.
Economic leaders: Thomas Mun
Main ideas/policies: Gold was the measure of wealth of nation. Armies and navies for conquest and colony, royal monopolies, subsidize exports, ban imports, ban export of gold, and control migration. |
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Definition
Leader and rots: John Locke; challenged rule of "divine rights" and argued for "natural rights of men"
Economic leaders: F. Quesnay
Main ideas and policies: Less rules and prohibitions; wanted to end rules and adopt Laissez Faire (let alone); competition is good; pursuit of personal interests, not the kings's |
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Definition
Leader and roots: G. Hegal; dialectic
Economic Leaders: Materialism- Karl Marx and F Engels. 1848 communist manifesto
Main ideas/ policies: Inevitable violent revolution. Dictatorship of prolifariat: abolish institutional institutions; take collective control of everything- ownership of all. Egalitarian redistribution. |
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Definition
| when business activity surges and gross domestic product expands until it reaches a peak. |
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Term
| Contraction business cycle |
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Definition
| A phase of the business cycle in which the economy as a whole is in decline. More specifically, contraction occurs after the business cycle peaks, but before it becomes a trough. According to most economists, a contraction is said to occur when a country's real GDP has declined for two or more consecutive quarters. |
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Term
| GDP (Gross domestic Product) |
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Definition
| The gross domestic product (GDP) is one the primary indicators used to gauge the health of a country's economy. It represents the total dollar value of all goods and services produced over a specific time period - you can think of it as the size of the economy. Usually, GDP is expressed as a comparison to the previous quarter or year. For example, if the year-to-year GDP is up 3%, this is thought to mean that the economy has grown by 3% over the last year. |
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Term
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Definition
1. Frictional: Based on the individual's issue
2. seasonal: ex: seasonal workers, fishermen
3. Cyclical: downturn in the business cycle
4. structural: a form of unemployment resulting from a mismatch between demand in the labor market and the skills and locations of the workers seeking employment. Even though the number of vacancies may be equal to, or greater than, the number of the unemployed, the unemployed workers may lack the skills needed for the jobs; or they may not live in the part of the country or world where the jobs are available. |
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Definition
| a rise in the general level of prices of goods and services in an economy over a period of time |
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Term
| Consumer Price Index (CPI) |
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Definition
| measures changes in the price level of consumer goods and services purchased by households |
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