What is national accounting?
A statistical technique using macroeconomic data to represent an economy coherently.
When did France harmonize its national accounting with other countries?
In 1976.
Which standards did France adopt in 1995 for national accounting?
The United Nations standards leading to SEC95.
What is an economic flow?
The annual variation of a recorded quantity expressed in monetary form.
What defines the economic circuit?
The set of economic flows created by operations between institutional units.
What defines an institutional unit in economics?
A resident economic actor owning assets, incurring debt, and undertaking economic activities.
Which six sectors make up institutional sectors?
Households, non-financial corporations, financial corporations, public administrations, non-profit institutions serving households, and the rest of the world.
What constitutes a household according to INSEE?
All occupants of the same dwelling, related or not, including single persons.
How many households did France have in 2015?
29 million households.
What was the average household size in France in 2015?
2.2 people per household.
What factors contributed to the average household size in France in 2015?
Population ageing and growth of single-parent and blended families.
What is a non-financial corporation?
The smallest combination of legal units forming an autonomous production unit for goods and services.
How does a Société Anonyme limit shareholder liability?
Liability is limited to the amount of each shareholder's contribution.
Who generally manages a Société à responsabilité limitée?
A manager appointed by its associates.
What is the minimum labour share of profit in a Société coopérative et participative?
At least 25%.
What defines a public enterprise?
State or public authority exercises dominant influence through ownership or voting rights.
What employee range defines a micro-enterprise?
Fewer than 10 employees.
What turnover limit defines an SME?
Turnover below €50 million.
How many employees define a large enterprise?
More than 5,000 employees.
What is a financial corporation according to SEC 2010?
A legally incorporated market producer mainly producing financial services.
Which main activity defines a financial corporation?
Producing financial services including intermediation and auxiliary activities.
How many financial subsectors are there?
Nine financial subsectors.
Name three financial subsectors among the nine listed.
Central bank, deposit-taking institutions excluding central bank, money market funds.
Which financial subsector includes insurance corporations?
Insurance corporations are one of the nine financial subsectors.
Into which three categories are public administrations divided?
Central, local, and social security administrations.
What are the three functions performed by public administrations?
Producing non-market services, redistributing income and wealth, and stabilizing economic activity.
Who defined the three functions of public administrations in 1959?
Richard Musgrave in The Theory of Public Finance.
What does the allocation function correct according to Musgrave?
Market failures by directing resources toward socially necessary goods and services.
How does the allocation function direct resources?
Through public production, subsidies, or taxes.
Who introduced the concept of the allocation function in 1959?
Richard Musgrave in The Theory of Public Finance.
When did the functions of the State expand beyond sovereign functions?
After the 1929 crisis.
What developments expanded State functions after 1929?
The welfare state and Keynesian ideas.
Why are the State and the market considered complementary?
Markets need a legal and institutional framework established by the State.
What risk arises from excessive State coercion?
It can produce a predatory State and reduce wealth creation.
What defines an externality in economics?
An action changing others' well-being without compensation.
What is asymmetric information?
A situation where agents do not have the same information.
What market problems can asymmetric information cause?
Adverse selection or moral hazard impairing market efficiency.
How can public authorities correct market failures?
Through taxation, subsidies, public production, regulation, standards, and certification.
What was the purpose of the Sherman Act of 1890?
To combat anti-competitive practices and abuses of dominant positions.
Who authored the work 'Economie des politiques publiques' in 2017?
Antoine Bozio and Julien Grenet.
According to John Rawls, when does social justice exist?
When two agents' economic situations improve together, not at each other's expense.
What are the three U's of the Beveridge system?
Universal participation, uniform benefits, and a single fiscal contribution.
How did disposable-income inequalities change during the Thirty Glorious Years?
They declined through progressive taxation and transfers to disadvantaged households.
What percentage of GDP did public expenditure represent in France in 2018?
56% of GDP.
What percentage of GDP did compulsory levies represent in France in 2018?
53.3% of GDP.
What does the welfare-state crisis refer to according to Pierre Rosanvallon?
Problems of financing, legitimacy, and efficiency affecting social protection.
Which problems are included in the welfare-state crisis?
Deficits, inactivity traps, bureaucracy, and persistent inequalities.
Who authored A Theory of Justice in 1971?
John Rawls.
When did the Meiji Restoration begin in Japan?
In 1868.
What major changes did the Meiji Restoration initiate in Japan?
Political opening, Westernization, and industrialization.
When did the Meiji Restoration period end?
In 1912.
What infrastructure did the Japanese State provide during the Meiji period?
Telegraph networks, roads, bridges, ports, railways, and public schools.
Which reports defined postwar objectives of social protection and full employment?
The Beveridge reports of 1942 and 1945.
Who authored the reports defining postwar social protection and employment goals?
William Beveridge.
How did the COVID-19 crisis affect Keynesian economic ideas?
It renewed Keynesian ideas and led to massive public intervention.
What were the goals of public intervention during the COVID-19 crisis?
To address the health emergency, support financial activity, and protect the global economy.
What is social protection?
A system where the community manages economic consequences of social risks.
What distinguishes horizontal redistribution from vertical redistribution?
Horizontal redistribution uses insurance logic with salary-based contributions; vertical uses assistance logic with taxes.
Which social policies did France introduce between 1932 and 1958?
Family allowances, Matignon agreements, social security, SMIG, and unemployment insurance.
How did France express solidarity during the COVID-19 crisis?
With the slogan “Whatever it takes” associated with Macron.
What does Robert Nozick's libertarian justice oppose?
Redistribution to the poorest based on merit and effort.
Whose approach considered inequalities of income and healthcare access?
Obama’s approach.
Which authors described horizontal and vertical redistribution in 2017?
Bozio et Grenet.
In which year did Robert Nozick publish his libertarian conception of justice?
1994.
What are institutions without profit motive serving households called?
ISBLSM are private organizations providing non-market services without seeking profit.
What does the 'rest of the world' include in economic terms?
All nations outside a state's borders with which it maintains economic relations.
How did France's economic openness rate change from 1965 to 2019?
It rose from 13% in 1965 to 32% in 2019.
What was the amount of foreign direct investment in France in 2019?
More than 31 billion dollars were invested in France by foreign investors.
How much did French foreign direct investment amount to in 2019?
French foreign direct investment amounted to 34.5 billion dollars.
What share of employment in France was contributed by foreign-owned transnational firms?
They contributed to more than 10% of employment in France.
Where did two-thirds of French exports go in 2019?
Two-thirds of French exports went to European Union countries.
Where was most French capital invested in 2019?
Most French capital was invested in European Union countries.
What is production according to INSEE?
Production is the socially organized activity creating goods and services by resident units.
What defines market production in terms of price and cost coverage?
Market production is sold at a price covering at least 50% of its production cost.
How is non-market production priced?
Non-market production is provided free or at a non-economically significant price.
Who pays the market price?
The consumer pays the market price.
What does the basic price represent for the producer?
The basic price is the amount received after product taxes and subsidies.
What does final consumption satisfy?
Final consumption satisfies individual or collective needs of households, enterprises, and administrations.
What distinguishes fixed capital formation from inventory formation?
Fixed capital formation involves durable goods acquired for more than one year.
What does inventory formation concern?
Inventory formation concerns goods retained or released from stocks over time.
What distinguishes circulating capital from fixed capital?
Circulating capital is used up in one production cycle, fixed capital is durable.
What is value added in production?
Additional value created beyond intermediate consumption.
What is the formula for gross value added?
Gross value added equals production minus intermediate consumption.
How much value added does a hairdresser create charging 30 euros with 10 euros purchases?
20 euros of value added.
Test your knowledge with 47 questions on National Accounting and Economic Aggregates.
1. What is the main purpose of national accounting?
2. Which example represents an economic flow rather than a stock?
Review the complete course in the study sheet for National Accounting and Economic Aggregates.
See study sheet →Import your course and AI generates flashcards in 30 seconds.
Flashcard generator