Clippers November

  1. What caused the implementation of the austerity program in Ireland?
    The insolvency and bailout of the 5 major Irish banks.
  2. What was behind the need to bailout the Irish banks?
    They owed a lot of money to German banks who in turn would be solvent it they didn't get their money.
  3. Where did the Irish bailout money come from?  What was done to repay it.
    The money came from the "troika".  The Irish government cut government services and raised taxes.
  4. What sectors are important to solving society's economic problems? (2)
    • The government who supplies public goods, deals with externalities, enforcing property rights, providing security, and dealing with social injustices.
    • The private sectors which through innovations solves problems dealing many goods and services.
  5. Since the 1980's our economy has nearly doubled in size. What has happened to the middle class?
    Middle class incomes and buying power have stagnated.  (Since the housing bubble burst middle class wealth has shrunk.
  6. Give some examples of how growth in GDP does not necessarily represent a growth in the well being of the society.
    Unhealthy food, gun sales, harmful financial products, etc.
  7. Growth is especially problematic when comes to considering its impact on the ________________.
  8. Growth does not necessarily increase human ______________.
  9. The economic theories that the markets are the best way to determine what is of value to a society is called ________________ or _______________ theory.
    neoclassical or neoliberal
  10. Who developed the theory of efficient markets in finance?
  11. According the efficient market theory what three things can cause distortions in markets?
    monopolistic behavior, unions interfering with the labor markets, and government taxes and regulation. (right , anything that will get in the way of the capitalists making the most money for themselves)
Card Set
Clippers November
Questions and answers from the November clippers.