Political Economy: The study of how politics and economics are related and how their relationship shapes the balance between freedom and equality.

Property: Ownership of the goods and services exchanged through markets.
Ex: land, buildings, businesses

Markets: Interactions between the forces of supply and demand, and they allocate resources through process of those interactions.

Public goods: Goods provided or secured by the state that are available for society that are available for society and indivisible, meaning that no one private person or organization own them

Social Expenditures: State's provision of public benefits, such as education, health care, and transportation, or welfare or welfare state.

Gross Domestic Product: Total market value of goods and services produced by one country in a year.

Central Bank: An institution that controls how much money is flowing through the economy as well as how much it costs to borrow money in that economy

Inflation: increase in the general price level of goods and services in the economy when demand outstrips supply.

Hyperinflation: Inflation that is higher than 50 percent a month for more than two months in a row.

Deflation: When too many goods are chasing too little money.

Regulation: Rules or orders that set the boundaries of a given procedure may take different forms.

Monopoly: Market controlled by a single producer

Tariffs: Taxes on imported goods

Quotas: Limit the quantity of certain goods coming into the country and other nontariff regulatory barriers.

Nontariff Regulatory Barriers: Create health, packaging, or other restrictions and whose purpose is to protects citizens and make it difficult or expensive for foreign goods to be sold in the local market.

Comparative Advantage: The ability to produce a particular good or service relatively more efficiently than other countries.

Mercantilism: Stands apart in the debate over freedom and equality that separates liberalism, social democracy, and communism

Parastatals: Attempting to create or control businesses that are viewed as critical for international competitiveness

Purchasing Power Parity: Attempts to estimate the buying power of income in each country by comparing similar costs such as food and housing expenses, by using prices in U.S. as a benchmark.

Gini Index: Mathematical formula that measures the amount of economic inequality in a society.

Human Development Index: Created by the UN Development , not only looks at the total amount of wealth in a society and its distribution but also gives equal weight to income, health, and average years of schooling.

Economic Liberalization: Cutting taxes, reducing regulation, privatizing state-owned businesses and state owned businesses and public goods, and expanding property rights.