Law Society, Political Involvement, and the Economic Environment

Vocabulary flashcards covering legal foundations (separation of powers, branches of law, offence classifications) and economic principles (the business cycle, macroeconomic sectors, supply and demand mechanics) from the lecture notes.

The Separation of Powers

A constitutional principle that helps ensure that no group has all the power by giving each group their own area of responsibilities.

Parliament (The Legislate)

The branch of government that makes and changes laws.

Executive

The branch of government that puts the law into action.

Judiciary

The branch of government that settles disputes about the law.

Precedent

A term used when judges give similar decisions based on like cases.

Indictable Offence

A serious crime that is typically heard in a higher court before a judge and jury (such as the Supreme Court); examples include murder, manslaughter, armed robbery, aggravated sexual assault, and arson.

Summary Offences

Less serious legal matters usually held without a jury in the magistrates or local courts (in NSW, held in the local courts); examples include offensive language, offensive conduct, common assault, minor property damage, and public disorder / loitering.

Legal Capacity

The ability of a person to do something, which can be affected by a person's age and mental status.

Public Law

A branch of law that aims to protect the public interest, involving individuals and the State, responsible for regulating a harmonious relationship between citizens and the state, and featuring more severe penal sanctions.

Private Law

A branch of law that aims to protect private interest between private entities or organisations acting in a private capacity, regulating activities in a just and fair manner with sanctions that usually include the payment of damages.

Sanction

An action that is taken or an order that is given to force a country to obey international laws by limiting or stopping trade with that country, by not allowing economic aid for that country, etc. — usually plural.

The Five Sector Model

A macroeconomic circular flow model showing the flow of income (Y), resources, output (O), and consumption/expenditures (E) between Households and Firms, along with leakages [Savings (S), Taxation (T), Imports (M)] and injections [Investments (I), Government Spending (G), Exports (X)] across the Financial, Government, and International sectors.

The Business Cycle

A period of macroeconomic expansion followed by a period of contraction.

Leading Indicators of the Business Cycle

Key economic metrics used to track the cycle, consisting of employment figures, inflation rate, gross domestic product (GDP), and consumer spending.

Drivers of the Business Cycle

Forces that cause changes in economic activity, including business investment, interest rate and credit, consumer expectations, and external shocks.

Contractions

Phases of the business cycle characterised by falling levels of production, decreasing consumer spending, a rate of inflation that might fall, generally falling wage and interest rates, and a rising level of unemployment.

Expansions

Phases of the business cycle characterised by rising levels of production, increased consumer spending, a rate of inflation that may rise, wage and interest rates that generally/eventually rise, and a falling level of unemployment.

Four Phases of an Economic Cycle

The progression of gross domestic product over time through Phase 1 (Expansion), Phase 2 (Peak), Phase 3 (Contraction), and Phase 4 (Recovery), each featuring different outperforming industry sectors.

Macroeconomic

The study of the economy as a whole, including performances, structure, and decision making (e.g., GDP, inflation, and employment).

Recession

An economic contraction driven by not enough spending that lasts at least six months.

Depression

A severe, long-term downturn in economic activity that lasts for years rather than months (e.g., The Great Depression).

Booms

A period of rapid economic growth, high employment, and soaring consumer confidence resulting from too much spending that can lead to overspending and inflation.

Troughs

The lowest point in an economic cycle, marking the end of a recession or depression and the transition phase before recovery begins.

Supply

The total amount of a specific good or service that is available to consumers from producers.

Demand

A consumer's desire and willingness to pay a price for a specific good or service.

The Law of Demand

An economic principle stating that as prices increase, the demand for that product decreases; if the price decreases, then the demand increases.

Equilibrium (Middle Point)

The market point where the supply curve and the demand curve intersect.

Price Movements

Economic changes in price that cause a sliding movement along the existing supply or demand curves.

Non-Price Movements

Influences other than direct price changes that shift an entire supply or demand curve from left to right.