W2 - LECTURE Flashcards
What is the core idea of Resource Dependency Theory?
Businesses depend on external resources, i.e., markets (capital, raw materials, labor) and non-market (government regulations) to survive and grow.
This theory emphasizes that organizations are not fully autonomous and must adapt to secure vital resources.
List the key assumptions of Resource Dependency Theory.
- Organizations seek to reduce dependence on others
- Organizations aim to increase control over critical resources
- Firms must adapt to their environment
These assumptions highlight the interdependence between businesses and their external environments.
What are the types of economies discussed?
- Market (Free market/capitalist)
- Planned (Communist/Socialist)
- Mixed
- Traditional
Each type of economy has distinct characteristics regarding production, consumption, and government involvement.
Define a Market Economy.
Decisions about production, consumption, and prices are determined by supply and demand, with minimal government intervention.
Individuals and private businesses own and control resources.
Define a Planned Economy.
The government controls all major aspects of economic production, including resource allocation and pricing.
There is no private ownership of resources or businesses.
What are the core functions of governments in market systems according to Adam Smith?
- Protect from violence and invasion
- Administer justice
- Establish and maintain public institutions in the interest of its citizens
These functions are essential for the stability and functioning of a market economy.
What is Public Choice Theory?
Applies the principles of economics to political behavior, analyzing how decisions in the public sector are made.
It challenges the assumption that government actors always act for the greater good.
True or False: In electoral democracies, citizens have the right to participate in meaningful, free, and fair elections.
True
This is a defining characteristic of electoral democracies.
What characterizes Authoritarianism?
Centralized power in the hands of a leader or a small group, with limited political freedoms for citizens.
This often includes suppression of political dissent and independent institutions.
What is Rent-Seeking Behavior?
Occurs when individuals or organizations use political influence to gain economic benefits without contributing to productivity.
This behavior leads to inefficient resource allocation and policies benefiting special interests.
Fill in the blank: A _______ economy combines elements of both market and command systems.
Mixed
In a mixed economy, both the government and private sector play roles in economic decision-making.
What is the Free-Rider Problem?
Some individuals may not contribute to public goods (e.g., taxes) but still enjoy the benefits.
This can lead to underfunding of essential services.
What distinguishes Liberal Democracies from other types?
Citizens have further individual and minority rights, are equal before the law, and the actions of the executive are constrained by the legislative and the courts.
This ensures a higher level of civil liberties and political rights.
What is the role of informal constraints in political systems?
Informal rules, customs, and practices that shape political behavior and decision-making.
These constraints can vary significantly between cultures.
What is Logrolling in politics?
Politicians may trade votes to pass legislation that favors specific groups rather than benefiting society as a whole.
This practice can lead to policies that prioritize special interests over collective welfare.
How do citizens participate in a Democracy?
Citizens vote to secure collective benefits (e.g., public goods) in return for political support.
This process emphasizes the reciprocal nature of democratic governance.
What is the impact of institutions on economic growth?
Quality institutions directly influence economic growth by establishing rules and constraints that shape economic behavior.
Strong institutions can prevent corruption and protect individual rights.
What is the purpose of rules and constraints in governance?
Prevent corruption, protect individual rights, and ensure accountability.
How do quality institutions influence economic efficiency?
By reducing transaction costs, protecting property rights, and maintaining law and order.
What are vital factors for stimulating investment and innovations?
Economic efficiency, protection of property rights, and law and order.
In what way do high-quality institutions indirectly affect economic growth?
By amplifying the benefits of infrastructure, technology, and foreign investment.
What is the primary purpose of regional governance institutions?
Promote political, economic, and security cooperation among member states.
Name three examples of regional governance institutions.
- European Union (EU)
- African Union (AU)
- Association of Southeast Asian Nations (ASEAN)
What are the key functions of regional governance institutions?
- Regional economic integration
- Conflict prevention and mediation
- Promoting regional policy alignment
What is the difference between full federation and loose intergovernmental collaboration?
Full federation involves pooling sovereignty for collective benefits, while loose intergovernmental collaboration maintains more individual state sovereignty.
What decision-making powers are typically delegated to shared institutions?
- Single market
- Currency
- Free movement across member states
What are the key areas of influence of the European Union?
- Trade
- Customs
- Competition rules
- Monetary policy
What is the focus of the United Nations (UN)?
Peacekeeping, conflict resolution, and fostering global cooperation.
What military alliance ensures collective defense for its member states?
North Atlantic Treaty Organization (NATO).
What does the International Criminal Court (ICC) prosecute?
Individuals for war crimes, genocide, and crimes against humanity.
What is the role of the World Trade Organization (WTO)?
Sets rules for global trade and resolves trade disputes.
What does the International Monetary Fund (IMF) provide?
Financial assistance and monitors global economic stability.
What does the World Bank support?
Development projects in low-income countries through loans and grants.
What does the United Nations Framework Convention on Climate Change (UNFCCC) oversee?
Global climate agreements, including the Paris Agreement.
What does the Intergovernmental Panel on Climate Change (IPCC) provide?
Scientific reports on climate change to inform policy.
What does the United Nations Human Rights Council (UNHRC) monitor?
Human rights violations globally.
What is the function of the International Court of Justice (ICJ)?
Settles disputes between states based on international law.
What does the European Court of Human Rights (ECHR) protect?
Human rights and freedoms within the jurisdiction of the Council of Europe.
What does social regulation restrict?
Behaviors that directly threaten public health, safety, or well-being.
What is the aim of economic regulation?
Promote fair competition and enhance market efficiency.
What do antitrust laws prevent?
Monopolies and promote competition.
What are price controls?
Limits on how much businesses can charge for certain goods or services.
What do environmental regulations include?
- Emission standards
- Waste disposal guidelines
- Resource use limits
What are examples of labor and employment regulations?
- Minimum wage laws
- Anti-discrimination laws
- Workplace safety standards
What do health and safety regulations include?
- Food safety standards
- COVID-19 protocols
- Workplace hazard regulations
What could be the impact of increased tariffs on imports?
Higher prices for consumers and potential retaliatory trade restrictions.
What industries might be most affected by tariffs?
[Specific industries vary based on context; examples could include agriculture, manufacturing, etc.]
Could tariffs lead to long-term economic consequences?
Yes, they could lead to ongoing trade tensions.
Types of economies
