Lecture notes
1.1 Lecture (Knowledge clip)
Governing The European Economy (between market and State)
Course introduction
Different questions going through the course:
1. What are Benefits and Setbacks of Free Movement of Workers within EU?
2. Could a Special Tax for the Richest Citizens Redistribute Wealth within EU?
3. What are Causes of Germany's Low Economic Growth? And how raise It?
4. What are the positive and negative Effects of Tourism in Barcelona?
5. How do Cyprus, Ireland and Portugal reduce the External Costs of Plastic?
Why is the Government Debt of France worrisome?
6. What is better for Euro Area: A Weak Euro or a Strong Euro?
7. How vulnerable is Europe to Changes in International Trade Environment?
8. What are the Strengths and Weakness of Single Market of EU?
9. How can the external Competitiveness of EU be improved?
,Economic concepts
1. important economic concepts (task 1.2)
you should know every definitions for the exam
A8 —> economic is about all kinds of actors (individuals, business, governments &
societies) and their decisions
Scarcity is very important
B2 —> scarcity
all societies face limited resources at any movement & unlimited human wants
“All the things that you want as an Individual or as a business…”
BUT always facing limited resources and how you deal with it
Bc of scarcity choices are being made
C4 —> Micro-economics
Individuals decisions of households and firms
D6 —> Macro-economics
Analyses the economy as a whole
Countries or global systems
E7 —> Opportunity cost
With the money u had you could have bought different things
Give up on something
F1 —> marginal
Different from the words of „marginalised people“ = NOT THE SAME
It means „extra or additional“
Marginal cost / benefit
G5 —> normative statement
An opinion
H3 —> positive statement
, „what is“ and what can be tested
Testable theory
What is causality? —> cause and effect relationship
economists are interested in positive statements about cause and effect
Proven theories
Causality is about effect relationships
What are the 3 basic rules of cause and effect?
Cause must be precede an effect - cause happen first leading to a specific effect
Direct connection must exist - must be logical link between cause and effect
An effect can have multiple causes - some effects result from a combination of
factors rather than just one cause
Casual chain:
an effect can become a cause —> chain
Every link triggers the next
Demand & Supply
What is demand? → Chapter 2
combination of price and quantity demanded in a particular market
Table (y= different prices; x = different quantity)
What consumers want to buy at particular prices = demand
Demand curve = different combinations (price and quantity)
Price 1,50€ → quantity demand of 4
, What happens if demand increases?
demand curve shifts to the right
bc at each price of the market the quantity demanded will be HIGHER
The price of the substitute (Y) of X rises → X looks affordable and demand for X rises
Y price rises → X demand increases
1.1 Lecture (Knowledge clip)
Governing The European Economy (between market and State)
Course introduction
Different questions going through the course:
1. What are Benefits and Setbacks of Free Movement of Workers within EU?
2. Could a Special Tax for the Richest Citizens Redistribute Wealth within EU?
3. What are Causes of Germany's Low Economic Growth? And how raise It?
4. What are the positive and negative Effects of Tourism in Barcelona?
5. How do Cyprus, Ireland and Portugal reduce the External Costs of Plastic?
Why is the Government Debt of France worrisome?
6. What is better for Euro Area: A Weak Euro or a Strong Euro?
7. How vulnerable is Europe to Changes in International Trade Environment?
8. What are the Strengths and Weakness of Single Market of EU?
9. How can the external Competitiveness of EU be improved?
,Economic concepts
1. important economic concepts (task 1.2)
you should know every definitions for the exam
A8 —> economic is about all kinds of actors (individuals, business, governments &
societies) and their decisions
Scarcity is very important
B2 —> scarcity
all societies face limited resources at any movement & unlimited human wants
“All the things that you want as an Individual or as a business…”
BUT always facing limited resources and how you deal with it
Bc of scarcity choices are being made
C4 —> Micro-economics
Individuals decisions of households and firms
D6 —> Macro-economics
Analyses the economy as a whole
Countries or global systems
E7 —> Opportunity cost
With the money u had you could have bought different things
Give up on something
F1 —> marginal
Different from the words of „marginalised people“ = NOT THE SAME
It means „extra or additional“
Marginal cost / benefit
G5 —> normative statement
An opinion
H3 —> positive statement
, „what is“ and what can be tested
Testable theory
What is causality? —> cause and effect relationship
economists are interested in positive statements about cause and effect
Proven theories
Causality is about effect relationships
What are the 3 basic rules of cause and effect?
Cause must be precede an effect - cause happen first leading to a specific effect
Direct connection must exist - must be logical link between cause and effect
An effect can have multiple causes - some effects result from a combination of
factors rather than just one cause
Casual chain:
an effect can become a cause —> chain
Every link triggers the next
Demand & Supply
What is demand? → Chapter 2
combination of price and quantity demanded in a particular market
Table (y= different prices; x = different quantity)
What consumers want to buy at particular prices = demand
Demand curve = different combinations (price and quantity)
Price 1,50€ → quantity demand of 4
, What happens if demand increases?
demand curve shifts to the right
bc at each price of the market the quantity demanded will be HIGHER
The price of the substitute (Y) of X rises → X looks affordable and demand for X rises
Y price rises → X demand increases
