3E Economics par. 6.2 and 6.3

• Economie
• Middelbare school
• vwo
• Leerjaar 3

Par. 6.1 assignment 6a

1. Volume, amount
2. Volume, euro's
3. Value, amount
4. Value, euro's

Par. 6.1 assignment 6b

1. 20%
2. 25%
3. 55%

Par. 6.1 assignment 6c
The share of trade with other EU countries has ...(1) because the growth of export to EU countries is ...(2)

1. 1 decreased 2 below average
2. 1 decreased 2 above average
3. 1 increased 2 below average
4. 1 increased 2 above average

Par. 6.1 assignment 8

1. A, export is the lowest of all countries
2. C, export ratio is the lowest of all countries

Division of labour

Consumers can buy more products of higher quality for lower prices

Higher prosperity

Prosperity in a narrow sense <-----> Prosperity in a broad sense

spending power                          looking at all needs

                                                                         including f.e. environment

Operating costs <--------------> Social costs

                                                                             Negative external effects

                                                                     f.e. healthcare,

                                                                                environmental pollution

Negative external effects:

- decrease prosperity in a broad sense

- cost tax payer money

Positive external effects, f.e. the gym

Measures government can take to decrease negative external effects:

- Rules and regulations

- Quota's

- Excise duties ( cost price increasing tax )

- Subsidies, f.e. on environmentally friendly products

Excise duties --> Price product increases -->

--> Use product decreases --> Less damage to health and environment

besides:

Excise duties give the government money to take measures

The one who wasts, pays for cleaning the environment

( f.e. less road tax, higher excise duty on petrol )

Polluting production method € 3,50 per product. Environmentally friendly production method € 5,-
The excise duty should be ...(1)
The subsidy should be ...(2)

1. 1> 30% 2> 30%
2. 1> 30% 2> 43%
3. 1> 43% 2> 30%
4. 1> 43% 2> 43%

How is an environmentally friendly company able to make a good profit, even without excise duties or subsidies?

Producing environmentally friendly

--->

Good reputation

--->

More sales / Higher price

--->

Good profit

Corporate Social Responsibility

3 P's

- Profit

- Planet

- People

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Small card game

Collective sector (page 187)

Collective ( public ) sector

/                                                   /

Government                    Social security funds

                    /                           /                         ( f.e. unemployment                                                                  benefit)

(Central government) (Local authorities)                                                  

provinces

municipalities

                                                    

Collective sector

Collective goods:

- goods that cannot be delivered in individual units

- no one can be excluded from the good

- the government has to provide the collective goods

- People pay for collective goods via taxes

Collective sector

Taxes:

- Taxes on income, profit and capital

- People with higher income pay a higher percentage of tax than people with lower income

- Influence on differences in income

Hw

Par. 6.2 assignment 6

Par. 6.3 assignment 9