TEXT 1 THE ORIGIN OF nature.

GOVERNMENT V. It derives its right from the

immediate and express
1 Government is both a fact and a appointment of God;--
right. Its origin as a fact is simply VI. From God through the Pope, or
a question of history; its origin as a visible head of the spiritual
right or authority to govern, is a society;--
question of ethics. VII. From God through the people;--
Whether a certain territory and its VIII. From God through the natural
population are a sovereign state or law.
nation, or not--whether the actual
ruler of a country is its rightful TEXT 2
ruler, or not--is to be determined GOVERNMENT AND
by the historical facts in the case; THE STATE IN LATIN
but whence the government AMERICA
derives its right to govern, is a 1 Many inhabitants of the rural areas
question that can be solved only of the Andes suffer from poverty,
by philosophy, or, philosophy inequality, and exclusion from
failing, only by revelation. economic and social resources. The
situation in these areas is extreme and
2 Political writers, not carefully disestablishes political, economic,
distinguishing between the fact and humanitarian, and security
the right, have invented various ramifications. For example, the
theories as to the origin of widespread lack of opportunity in
government, among which may be licit industries, together with
named-- permanent economic instability
I. Government originates in the right complicates domestic and
of the father to govern his child. international efforts to eradicate coca.
II. It originates in convention, and is At the same time, the persistence of a
a social compact. huge territory with a nominal or
III. It originates in the people, who, nonexistent state presence
collectively taken, are sovereign. exemplifies rural populations without
IV. Government springs from the opportunities and vulnerability to
spontaneous development of
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 violence and criminality.
TEXT 3 MEASURING NATIONAL
OUTPUT
Taken and adapted from Basic
Economics Science, 2007
1. National output during a year
can be measured in a number of ways.
The most common measure today is the
Gross Domestic Product (GDP), which
is the sum of total everything produced
within a nation’s borders. An older and
related measure, the Gross National
product (GNP) is the sum total of old
goods and services produced by the
country’s people, wherever they or their
resources may be located. These two
measures of national output are
sufficiently similar that people who are
not economists need not bother about
the differences. For the United States,
the difference between GDP and GNP
has been less than one percent.
2. The real distinction that must be
made is between both these measures of
national output during a given year _ a
flow of real income_ versus the
accumulated stock of wealth from the
past. During war World II, for example,
American production of automobiles
stopped, so that factories which
normally produced cars could instead
produce tanks, planes and other military
equipment. This meant that existing cars
simple deteriorated with age, without
being replaced. So did most
refrigerators, apartment buildings and
other parts of the national stock of
wealth. Wartime government posters
said.
3. After the war was over, there
was a tremendous increase in the
production of cars, refrigerators,
housing, and other parts of the nation’s
accumulated stock of wealth which had
been allowed to wear down or wear out
while production was being devoted to
urgent wartime purposes. The durable
equipment of consumers declined in
real value between 1944 and 1945, the
last year of war_ and then more than
double in real value over the next five
years, as the nation’s stock of durable
assets that had been depleted during the
war was replenish. This was an
unprecedented rate of growth. Business
as well had an accelerated growth of
durable equipment after the war.
4. Just as national income does not
refer to money or other paper assets, so
national wealth does not consist of these
pieces of either, but of the real goods
and services that such things can buy.
Otherwise, any country could get rich
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immediately by printing more money.

5. Sometimes national output or

national wealth is added up by using the
money prices of the moment, but most
serious long-run studies measure output
and wealth in real terms, taking into
account price changes over time. This is
necessarily an inexact process because
the prices of different things change
differently over time. In the century
between 1900 and 2000, for example
the real cost of electricity, eggs,
bicycles, and clothing all declined in the
United States, while the real cost of
bread, beer, potatoes and cigarettes all
rose