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Tutorial: Economic Lyceum Topic: State Economic Policy Prepared by: Ing. Lenka Gabrielová Projekt Anglicky v odborných předmětech, CZ.1.07/1.3.09/04.0002 je spolufinancován Evropským sociálním fondem a státním rozpočtem České republiky.
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T HEORETICAL AND P RACTICAL E SSENTIALS OF E CONOMIC P OLICY
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Generally, economic policy is the government's approach to the economy of its country. It is an activity in which members of economic policy (especially government) use certain tools and conferred competences to influence economic and social development (the economy as a whole or only its part), and tries to achieve certain economic goals.
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Economic policy is a combination of economic approach to social development that depends on politics. The relationship between the economy and politics must be kept in a balance. Economic policy can be considered as a set of tools that affect not only macroeconomic but also microeconomic area.
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It assumes that the activity of individuals requires a particular coordination, which is in a practical economic policy complemented by political and legal framework; therefore, practical economic policy is created. It attempts to form a consistent system of goals and means, as well as the optimal conception of economic and political objectives and instruments.
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It is a set of intentions, acquisitions and agreements promoting regulation, influence and direct determination of economic activities. Generally, it is determined by an economic level of a particular country. An economic policy are given particular solutions that may serve as possible decisions. Theoretical policy does not take a political responsibility for these decisions.
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It is based on the theory of economic policy. The theoretical economic policy offers certain alternative solutions that are possible for practical decisions of economic policy. There is a fundamental difference between the theoretical and practical EP. The theoretical part of the economic policy does not take a responsibility for its claims unlike the practical one.
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It is influenced by political power and political opposing. The practical economic policy considers not only the political, social and international situation, but also an approval or disapproval of the voters.
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A person by observing the self-interest, profit or benefit, is led by an invisible hand of the market → it helps to achieve a goal that is not primarily the priority → because if a person follows his own interest, he may often help the society much more effectively than if he tried to help the society consciously. It optimizes the relationship between producers and consumers → it leads to an efficient allocation of labour and capital that is much more effective than if someone consciously aimed to it.
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Define a term ‚economic policy‘, its division and basic differences. Give an example from a real life where ‚an invisible hand of the market‘ will function. Who was the author of this principle?
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HOLMAN, Robert: Ekonomie, 4. vydání, Praha: C.H. Beck 2005, ISBN 80-7179- 891-6 KASAN, Jan, ŽÁK, Milan: Hospodářská politika A, Praha, VŠE, 1992 SLANÝ, Antonín a kolektiv: Makroekonomická analýza a hospodářská politika, Praha, C. H. Beck, 2003, ISBN: 8071797383 KLIKOVÁ, Christiana, KOTKLÁN, Igor: Hospodářská politika, Ostrava, Institut vzdělávání SOCRATES, s.r.o., 2006, ISBN: 8086572048 VOSTROVSKÁ, Zdena, VORLÍČEK, Jan: Úvod do hospodářské a sociální politiky, Praha, VŠE, 2005 ŽÁK, Milan, NĚMCOVÁ, Ingeborg: Hospodářská politika I., Praha, VŠE 1998
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