Chapter 9/10

Question 1

Define Hyperinflation

Answer 1

• A dramatic increase in inflation over a short amount of time
• Surge in prices exceeding 50% each month

Question 2

Define Reparation

Answer 2

• The action of repaying a wrongdoing by means of money and wealth
• World War II reparation; to replace war indemnities

Question 3

What was the Russian Revolution?

Answer 3

• A civil war within Russia to abolish the monarchy
• Resulted in the establishment of the Soviet Union

Question 4

Define Communism

Answer 4

• A system of government that abolishes the social system Ie. sharing is caring
• North Korea, 20th century Russia

Question 5

Define Capitalism

Answer 5

• A social system where the countries trade and industry is determined by private industries
• USA, Australia

Question 6

What is Economic Depression?

Answer 6

• A major decline in economic growth
• A recession that lasts longer than 3 years
• The Great Depression

Question 7

What are Economies of Scale?

Answer 7

• When a companies production exceeds its costs; large scale companies that make more than they spend
• More goods means products cost less

Question 8

What is the World Bank?

Answer 8

• An international organization that provides funding and economic aid to developing nations
• Dedicated to reducing poverty

Question 9

What is the International Monetary Fund?

Answer 9

• Another group that promotes economic growth and financial stability
• Ensures stability of participating countries

Question 10

Who was John Maynard Keynes?

Answer 10

• British economist
• Benefitted countries post World War II
• Founder of Keynesian economics

Question 11

What is the European Union?

Answer 11

• International organization comprising of 27 European countries
• Established after World War II to prevent further conflict between countries

Question 12

What is the World Trade Organization?

Answer 12

• Oversees trade agreements between countries
• Resolves trade disputes
• Ensures trade stay fair and up to regulations

Question 13

Define Outsourcing

Answer 13

• When a country receives goods from an outside source
• Alberta exports oil to the USA

Question 14

Define Containerization

Answer 14

• Packing products into packages to be transported, especially in metal crates and over seas
• Cargo carriers take goods over seas in large

Question 15

What is Bretton Woods?

Answer 15

• Conference held in New Hampshire in 1944 following World War II
• Created the International Monetary Fund
• Created the International Bank for Reconstruction and Development

Question 16

Define Trade Liberalization

Answer 16

• Process of reducing tariffs to allow free trade
• Reduced government intervention

Question 17

What is Free Trade?

Answer 17

• Limitation of trade regulations
• Reduced taxes on imported goods
• Allows for competition to promote economic growth

Question 18

Define Sanctions

Answer 18

• Restrictions put in place to influence decisions and direction
• Penalty for disobeying law

Question 19

What is NAFTA?

Answer 19

• North American Free Trade Agreement
• Reduces tariffs and restrictions between Canada, USA and Mexico

Question 20

What are Transnational Corporations?

Answer 20

• Large Companies that operate in more than one country
• Car manufacturers, million dollar companies

Question 21

Who is Freidrich Hayek?

Answer 21

• Supported free trade (supply and demand)
• Wrote a book and won a Nobel

Question 22

What Does E-commerce Mean?

Answer 22

• The process of selling and buying goods online
• Amazon