Ecenomics Flashcards
Democratic
Voluntary decision-making & acceptance on rules, regulations and orders
Direct or indirect democracy
Aspects of democratic political systems
Electoral system Regular elections Freedom of speech Freedom from coercion Secret ballot Free media Party system Representative assembly Parliament
Branches of government
Legislative function
Make, amend or replace laws
If bill gets approved – becomes a law
Presidential or
Parliamentary system
Executive function
Decisions put into effect
Government,
civil servants, ministers etc
Judicial function
Supreme Court & the system of courts
Charactaristics of European union
Shared values: liberty, democracy, respect for human rights and fundamental freedoms, and the rule of law.
A unique institution – Member States voluntarily cede national sovereignty in many areas to carry out common policies and governance.
Nor a super-state to replace existing states, nor just an organization for international cooperation.
Single market: Four freedoms of movement (eu)
Labour, Capital, Services and Goods
Exclusive competences EU
customs union;
the establishing of competition rules necessary for the functioning of the internal market;
monetary policy for euro area countries;
conservation of marine biological resources under the common fisheries policy;
common commercial policy;
conclusion of international agreements under certain conditions.
Relevances of EU
Single Market
Competences
Exclusive competences
Regulation
Micro-economic
concerned with the study of economic decission taking by individuals and firms
Macroeconomic
concerned with interactions in the economy as a whole
Centrally planned economy
Political choices, not consumer demands
Efficient resource management, price setting & risk taking is not appreciated
Free market economy
Consumers are the boss (dollar votes)
Producers with the nicest/cheapest products, get most clients
Leakages
Savings
Taxes
Imports
Injections
Government spending
Investment spending
Exports
GDP
The sum of all incomes of the households
Or
The monetary value of the output of goods and services
Or
consumption+investment+government expenditure+export-import
How do countries restrict trade
Quotas, tariffs, exchange control, subsidy, quality control
Why do countries restrict trade?
retiliation, infant industry are mentioned in the book, but there are more reasons: political independence, the protect copyright/patent violation, etc.
