Basic Concepts & Definitions
What is economic liberalism?
Economic liberalism is a theory that supports free markets, private property, and minimal government intervention in the economy.
First central bank in history?, if you give exact date of its appearence, plus 300 points otherwise, stay unchanged
Sveriges Riksbank (Sweden, 1650).
Who are the main representatives of neoliberalism?
Milton Friedman, Friedrich von Hayek, Walter Eucken, Ludwig Erhard → the “free market squad”
BONUS POINT
DOUBLE
What is the idea of “state as referee”?
State enforces rules, not controls economy → fair play system
minus points
-500
What are universal banks?
Banks that accept deposits and give loans but do not issue securities.
What was Friedrich von Hayek’s main argument?
Too much government = loss of freedom → state → danger
How are inflation and unemployment related?
Short run: opposite → inflation ↑ → unemployment ↓
LOOSE POINT
THE OPPOSITE TEAM CAN DETERMINE LOSS OF YOUR POINT . 0<X<500
. What is Keynesianism?
Keynesianism is an economic theory that supports active government intervention (spending and policies) to manage demand and stabilize the economy.
If a central bank sells government bonds, what happens to money supply and interest rates?
MINUS POINT
LOOSE HALF YOUR POINT
BONUS POINT
TAKE YOUR TEAMMATES POINT . 300
What does “ordo-liberalism” mean?
Market freedom under strong rules → freedom with order
What is the Laffer Curve?
The Laffer Curve shows the relationship between tax rates and tax revenue, suggesting there is an optimal tax rate that maximizes government revenue.
LOOSE POINT FOR BOTH TEAM
-400
What is the significance of Ludwig Erhard?
Applied neoliberal ideas → German Economic Miracle → the doer, not just thinker
HAPPY BONUS. CHOOSE 1 TO 9 NUMBER TWICE. FIRST ONE IS FOR YOU
FIRST NUMBER X 100 , POINT TO THE TEAM, SECOND NUMBER X 100 FOR NEXT TEAM
BONUS
DOUBLE POINT
plus points
+1000
loose point
HALF OF YOUR SCORE
plus point
half of your point
After the Korean War, Which country was a very poor country with a largely agrarian economy.
South Korea
Who applied neoliberal reforms in Germany?