1.12 And 1.13 Flashcards
(13 cards)
What is the developmental state
Government that takes leading role in promoting economic devolvement
What is the failure of central planning ?
To match the increase in living standards like in the west
What is a dynamic economy
Economy that brings sustained growth in living standards
What conditions affect dynamism
Economic and political conditions
What are the economic conditions that affect dynamism
Private property is not secure - weak enforcement of law , crime, weak governments
Markets for firms outputs are not competitive- Firms lack incentives to produce efficiently expand and innovate
Firms controlled by people who owe their positions to connections to government or privileged birth - They did not get position of power because they were good at it but because they were born into it
Why are the government important in the success of capitalism? (Political conditions)
Governments enforce laws and regulations that influence the economy
Governments oversee disputes over property rights and also make sure not unethical practices occur
The government also provides essential goods and services
Define economics
Study o the interaction of people with each other and with the natural environment in reducing and acquiring their livelihoods and how it changes over time
How does the production of goods and services take place within households
People have children in a structure (house)
Use equipment daily
And reproduce and raise the future work force for firms
And reproduce in the future
What is an environmentally destructive pattern of technological change
Natural resources are artificially cheap so we overuse it
What is one way the technological process can contribute to mitigating climate change?
Reduce cost of goods and services that are compatible with environmental sustainability
T or F - climate change is worsening living standards for future generations
True
What is climate change and resource exhaustion a result of
Expansion of the economy and the way it is organised
Where have democratic governments faulted in reducing pollution ?
They are reluctant to adopt environmental policies that restrict individual choice such as something that would reduce the profit of companies providing carbon based energy
