Themes and topics: politics and economics (C1 Vocabulary)
Sovereignty is a state's supreme authority, legitimacy is the sense that power is rightful, and the social contract trades obedience for order.
Governance and legitimacy
Not "The election gave the party sovereignty to govern for four years." — say "The election gave the party the legitimacy to govern for four years.". Legitimacy is rightful authority a government earns; sovereignty is a state's supreme authority over its territory.
Try it: Farid: Why does the editorial defend independent courts and a free press? Diego: They keep power accountable, so they preserve the government's ______. Choose the words for the blank. (legitimacy / recession / sovereignty) Answer: legitimacy — Keeping power accountable preserves a government's rightful authority, which is its legitimacy.
Word
Pronunciation
Example
sovereignty
/ˈsɑvrənti/
The treaty raised uncomfortable questions about how much sovereignty the state should cede to a regional body.
legitimacy
/ləˈdʒɪtəməsi/
A government that ignores its own courts quickly loses legitimacy in the eyes of the public.
social contract
/ˈsoʊʃəl ˈkɑntrækt/
When basic services collapse, people feel the social contract has been broken.
The language of the economy
A recession is a sustained fall in economic activity; fiscal policy means spending and taxes, and a fiscal deficit means spending exceeds revenue.
Not "The ministry decided to shorten fiscal policy." — say "The ministry decided to loosen fiscal policy.". Policy is described as tight or loose, so you tighten or loosen it.
Try it: Farid: The deficit has widened, so the finance ministry wants to cut spending. What will it do? Diego: It plans to ______ fiscal policy. Choose the words for the blank. (tighten / relax / lower) Answer: tighten — Policy is described as tight or loose, so cutting spending or raising taxes means to tighten it.
Try it: Farid: Why did tax revenues fall so sharply? Diego: As the ______ deepened, the state's fiscal deficit ballooned. Choose the words for the blank. (recession / sovereignty / legitimacy) Answer: recession — Falling revenue and a growing shortfall describe an economic downturn, which is a recession.
Word
Pronunciation
Example
recession
/rəˈsɛʃən/
The country slid into recession as investment dried up and unemployment climbed.
fiscal policy
/ˈfɪskəl ˈpɑləsi/
The minister argued that loosening fiscal policy would soften the downturn.
fiscal deficit
/ˈfɪskəl ˈdɛfəsət/
Years of emergency spending left the treasury with a widening fiscal deficit.
Who a government answers to, and what it steers
A constituency is the voters an official represents, a policy agenda ranks goals, and monetary policy is the central bank's tool, not fiscal policy.
Not "Parliament cut income tax as part of its monetary policy." — say "Parliament cut income tax as part of its fiscal policy.". Taxes and spending are fiscal policy; interest rates are monetary policy.
Try it: Farid: What was behind the latest rate rise? Diego: The central bank wants to slow inflation. Raising rates is a tool of ______. Choose the words for the blank. (monetary policy / fiscal policy / its policy agenda) Answer: monetary policy — Interest rates are the central bank's instrument, so raising them is monetary policy.
Word
Pronunciation
Example
constituency
/kənˈstɪtʃuənsi/
She held monthly town halls so her constituency could raise problems in person.
policy agenda
/ˈpɑləsi əˈdʒɛndə/
Housing moved to the top of the policy agenda after the election.
monetary policy
/ˈmɑnəˌtɛri ˈpɑləsi/
The central bank tightened monetary policy by raising interest rates again.
What are the common mistakes?
Incorrect
Correct
Why
The election gave the party sovereignty to govern for four years.
The election gave the party the legitimacy to govern for four years.
Legitimacy is rightful authority a government earns; sovereignty is a state's supreme authority over its territory.
The ministry decided to shorten fiscal policy.
The ministry decided to loosen fiscal policy.
Policy is described as tight or loose, so you tighten or loosen it.
Parliament cut income tax as part of its monetary policy.
Parliament cut income tax as part of its fiscal policy.
Taxes and spending are fiscal policy; interest rates are monetary policy.