EUROPEAN ECONOMIC COMMUNITY (EEC), The European Economic Community (EEC) was established by the Treaty of Rome, Italy in 1957 by six European countries. These countries were France, West Germany, Italy, Belgium, The Netherlands and Luxemburg.
formation of European economic community
The EEC actually became a reality on 1st of January, 1958 after the national parliaments of the six countries ratified the Rome Treaty with overwhelming majority. Denmark, Britain and Ireland later joined the EEC in 1973, thereby, increasing its membership to nine
Objectives and functions of European economic community EEC
- To adopt a common tariff policy
- To eliminate barriers to free mobility of labour and capital between member-states
- To adopt a common transport policy among member-nations
- To eliminate trade restrictions, thereby ensuring free trade between member-nations
- Removing existing obstacles to guarantee a steady expansion, a balance trade and fair competition
- To strengthen the solidarity which binds European and overseas countries and to ensure the development of their economies
- To strengthen the unity of their economies and ensure harmonious development
- To ensure the economic and social progress of the member-countries
- To fix the currencies of member nations with minimal adjustment, with a possibility of adopting a common currency known today as the Euro
- loans for businesses
- how to establish enterprises
- what is a firm
- price equilibrium
- scale of preference
- concept of economics
- economic tools for nation building
The concept of the law of diminishing marginal utility can be used to explain the slope o normal demand curve. The higher the marginal utility derived from the good, the h: consumers are willing to pay for it. The rational consumer aims at maximising utility from the use of his resources. To achieve this, the con ensures that marginal utility (MU) of a g equal to the price (P) of the good.
However, MU diminishes as increasing quantities of a good are consumed. Therefore, MU of a good diminishes, consumer’s willingness to pay diminishes. This inverse relationship between quantity demanded of a good and its price is referred to as the law of demand.
Both the MU and demand curve slope wards from left to right. From the diagram , 21.6, the higher the MU derived from a commodity, the higher the price the consumer be willing to pay for it, hence when MU is high (e.G MU3 at q3), a consumer will be ready to pay P3 for q3. However, when MU diminishes as increasing quantities are consumed (e.g from q3 to 12), willingness to pay diminishes (e.g from P2 to P1). This inverse relationship between MU and quantities consumed is referred to as law of diminishing marginal utility.
- 142. MALNUTRITION
- 143. DISEASE, CAUSES, SYMPTOM CORRECTION
- 144. RANGE MANAGEMENT AND IMPROVEMENT
- 145. LIVESTOCK DISEASES
- 146. VIRAL DISEASES