Economics and New Zealand Law Review

A comprehensive set of flashcards summarizing key concepts from the economics and law lecture notes, providing definitions and explanations for effective exam preparation.

What is opportunity cost?

The value of the best option that is given up when making a decision.

What are explicit and implicit costs?

Explicit costs are direct costs incurred, while implicit costs are opportunity costs not captured through direct measurement.

What is another explanation of marginal benefit?

The additional satisfaction or maximum amount a consumer is willing to pay for one more unit of a good or service.

What is diminishing marginal utility?

The principle that as consumption of a good increases, the additional satisfaction (marginal benefit) decreases.

What is the condition for efficient decision-making?

Marginal benefit (MB) equals marginal cost (MC).

What is a sunk cost?

Costs that have already been incurred and cannot be recovered, which should not affect current decisions.

What does the demand schedule show?

The relationship between the price of a product and the quantity demanded.

What effects the shape of the demand curve?

The Law of Demand states that as prices rise, quantity demanded falls, and vice versa.

What is the Law of Supply?

As the price of a good increases, the quantity supplied increases.

What is equilibrium

The market state where quantity demanded equals quantity supplied, leading to a stable price.

What does consumer surplus represent?

The difference between what consumers are willing to pay and what they actually pay.

How do you calculate total CS?

Total CS = ½ x Quantity x (Maximum Price - Market Price).

What are key elements the NZ legal structure?

Legislation, case law, customary law (tikanga), and constitutional principles.

What is Tikanga?

Customary practices and values representing ethical behavior in Māori culture. It is applicable law in NZ courts

Who is the Governor-General

The King's representative who formalizes parliamentary actions and oversees the executive council.

What are prerogative powers?

Powers exercised by the sovereign, such as opening parliament and dissolving it before elections.

What is the rule of law?

The principle that all individuals are subject to the law and no one is above it.

What is producer surplus

The amount the seller paid for goods minus the seller’s cost (looks light staircase from left to right)

What is consumer surplus

A measure of economic welfare from the buyers side, representing the difference between what consumers are willing to pay and what they actually pay for a good or service.

What is market demand?

Sum of indvidual demands, gives us the market curve

What is total surplus?

The value to customers - the cost of sellers.

What is marginal benefit?

The additional satisaction or maximum amount a consumer is willing to pay for one more unit of a good or service.

What is economics?

Allocation of scarce resources to fulfill society wants and needs, focusing on the production, distribution, and consumption of goods and services.

What are the types of law?

Legislation and case law, legislation is more important.

What are legislations?

They are laws made by parliament to implement government policy.

How do judges use legislation?

Judges use legislation to make law by applying/interpreting legislation. They also use existing principles if there is no legislation

What are courts bound by?

They are bound by parliament and must follow legislation, as well as they are bound by precedent (Doctrine of precedent, they must follow similar rulings or rulings from higher courts).

What is a constitution?

Something that regulates the behaviour of the state, and places limits on the exercise of public power

What is the New Zealand constitution?

It is a constitution that isn’t written withtin a single word document, as the majority isn’t written. It is not supreme law.

What is NZBORA?

The New Zealand BIll of Rights Act is where everyone has the right to freedom of discrimination on grounds of discrimination in the Human Rights Act 1993.

NZ Key Statutes

NZBORA, Human Rights Act 1993, Electoral Act 1993, Imperial Laws Application Act 1988, Constitution Act 1986, and Senior Courts Act 2016.

What is the Treaty of Waitangi?

It is not a statute, but must be legally enforced through ratification to incorporate into NZ law. This means it must be endorsed and put into law. The treaty is too ambiguous though, so it cannot be legislation and is instead honoured by referral from parliament and interpreted.

What is the Waitangi Tribunal?

A tribunal tasked with determining meaning and effect of the Treaty for purposes of inquiring into Maori claims. Court of Appeal considers cases where the treaty may have been broken upon recommendation of the Waitangi Tribunal

What are the key principles of constitutions?

Prerogative powers (opening/closing parliament, declaring war), Separation of powers (3 branches of government), Parliamentary supremacy (Parliament is the supreme law-making body, legislation is the highest form of all law, cannot bind successors), and Rule of Law (Everyone is equal under the law, acts of officials in carrying out government orders are accountable to NZ laws).

What is Constitutional Law?

Statutes, the Treaty of Waitangi, Constitutional Conventions, and Constitutional Principles.

What are Constitutional Principles?

Fundamental rules and values that govern a state, limit power of government and structure it. Separation of powers, rule of law, democracy etc.

What are Constitutional Conventions?

Conventions are non-legal binding customs to guide political behaviour.

What are the 3 arms of government?

There is Legislature (Parliament), the Executive (Cabinet/Ministers), and Judiciary (Courts) that make up the government.

Who governs parliament and what is the structure?

Parliament comprises the King and he is represented by the GG, with the house of representatives being for the people of NZ and making recommendations to the government. If there are 61 seats under a party they will govern, no majority means a coalition.

How do courts work?

Supreme court can override previous supreme court decisions, and separation of power doctrine means that courts interpret the law, executive implement, parliament makes/unmakes. Courts following precedents from similar cases or rulings from higher courts is stare decisis (doctrine of precedent).

What is court hierarchy in NZ?

Tribunals at bottom, then district courts, next is high court, then court of appeal, then supreme court on top