Notes, summaries, assignments, exams, and exercises for Economics for Baccalaureate

Barter

Barter is the exchange of goods and services for other goods and services without using money.

Money

Regardless of the form it takes (e.g., euro bill), money is anything that functions as a medium of exchange, store of value, or standard of value.

Money Supply

Money supply is the sum of the cash money (coins and banknotes).

Monetary Aggregates

Monetary aggregates are broad categories that measure the money supply in an economy, established by the European Central Bank. Monetary aggregates are used to measure the money supply in a national economy.

• M1: Physical paper and coin currency in circulation, plus bank reserves held by the central bank, also known as the monetary base.
• M2: All of M1, plus traveler's checks and demand deposits.
• M3: All of

Applicant (solicitante): A person who applies or requests something; a candidate. Application form (solicitud de): A document to be filled out by an applicant.

Apply for a job (solicitar un trabajo): apply for a position; reply to employment advertisement. Be in charge of (estar a cargo de): having control of (sth); be responsible for.

Be responsible for (ser responsable de). Bonus (sobre sueldo): extra pay. Boss (jefa): manager. Casual job (trabajo temporal): temporary job. Day shift (turno de día): daytime work period.

Dismiss (despedir): sack; fire an employee. Dismissal (despido): the act of being fired from a job. Duties (deberes): job functions / tasks. Earn one's living (ganarse la vida): to earn the money needed for food, clothing, etc....

Core Economic Concepts

Microeconomics: Households and Firms

Microeconomics is the study of the economic system from the perspective of households and business firms.

Macroeconomics: System Performance

Macroeconomics is the study of the overall performance of the economic system.

Economic Growth (EGR)

Economic growth means that the economy is moving towards its full potential output. This is beneficial for the economy because it signifies that people are working and goods are being sold, which in turn stimulates the economy further by creating more jobs. Economic growth is typically presented as the percentage increase in Real GDP.

Gross Domestic Product (GDP) Definition and Measurement

GDP is the total market value of all the final goods and services...

Athletes and Drug Use

Athletes caught using drugs should never be allowed to compete again. Do you agree?

Success, idolatry, age, poor social life, demand, high competition, are some of the reasons why athletes find an inappropriate refuge in drugs. Athletes who go down in history for their achievements and not for their scandals, one day they must decide which way to go. If for the success, a path that requires dedication to sun and shade and social abstinence, that is, to become an adult with adolescent mentality, where parties, excesses, drugs and alcohol have no place. Or the other, that of normal life along the normal path, which many 'athletes' choose because they are not willing to leave their social life in exchange for achieving glory...

Financial Institutions

Retail Banks: issuing shares or bonds-receiving deposits

Building societies: arranging mergers

Insurance companies: offering life insurance-providing pensions

Investment Banks: arranging or fighting takeover bids- arranging mortgages- giving financial advice to companies

Financial Terms

• Mortgage: is a loan to buy property
• Deposit: money you put in the bank
• Pension: money paid to retired person
• Stocks or Shares: securities representing part ownership of a company
• Capital: money invested in a business
• Bonds: are interest paying securities issues by companies that need to borrow money
• Takeover: company gains control of another one by buying its stocks
• Merger: two formerly separate companies join together

Legal and Financial Terms

• Conglomerates:

Economics

Definition

Derived from the Greek word ‘oikonomos,’ meaning “one who manages a household,” economics studies how societies allocate scarce resources to satisfy unlimited wants and needs.

Core Principles

1. Trade-offs: Acquiring something necessitates forgoing something else (e.g., watching TV versus studying).
2. Opportunity Cost: The cost of something is the value of the next best alternative forgone.
3. Marginal Thinking: Rational individuals make decisions by comparing the additional benefits and costs of an action.
4. Incentives: People's behavior is influenced by incentives, such as price changes (e.g., lower prices may increase consumption).
5. Benefits of Trade: Specialization and trade allow individuals and nations to achieve higher levels

Regressive Tax

A regressive tax is a tax that takes a larger percentage of income from low-income earners than from high-income earners. It is the opposite of a progressive tax, which takes a larger percentage from high-income earners. A regressive tax is applied uniformly to all situations, regardless of who is paying.

Regressive Tax vs. Progressive Tax

A progressive tax is a tax whose rate increases as the payer's income increases. The higher the income, the higher the proportion of their income is taxable. A regressive tax is the opposite. Its rate increases as the payer's income decreases. The progressive tax affects high-income earners, while the regressive tax affects the low-income class.

Zero-Based Budget

A zero-based budget is a method...

Marketing Plan Essentials

Defining Your Approach

A marketing plan outlines key elements for reaching your target audience and achieving business goals. It encompasses:

• Customer Awareness: Making potential customers aware of your brand and offerings.
• Messaging: Crafting the right message to resonate with your audience.
• Delivery Methods: Choosing the most effective channels to deliver your message.
• Sales Generation: Converting awareness and interest into actual sales.

Identifying Marketing Vehicles

When developing your strategy, consider various marketing vehicles such as:

• Brochures
• Websites
• Networking events
• Social media platforms
• Advertising campaigns

Leveraging Social Media

To effectively utilize social media, businesses should:

• Create engaging content about

Types of Mandatory Law

Absolutely Mandatory Law: These legal rules do not allow any alteration, whether favorable or not to the worker. Examples include:

• Probationary period of one year for indefinite-term employment contracts in support of entrepreneurs
• Guarantees of salary
• Prohibition of employment of persons under sixteen years of age

Minimum Relative Mandatory Law: These legal rules impose the minimum conditions of employment favorable to workers. These legal rules do not permit worse working conditions. Examples include:

• The number of days of annual holidays (30 calendar days a year)
• The minimum interprofessional wage (2006-655,20€)

Maximum Relative Mandatory Law: These legal rules do not allow the setting of better working conditions (they...

Capital Adequacy Requirements

(A) To improve the capital adequacy requirements, Basel III provides a minimum capital requirement for Core Tier 1 capital adequacy ratios and a general capital adequacy ratio. It introduces capital retention capital, enhancing the bank's ability to absorb losses during a recession, and establishes countercyclical excess capital linked to excessive credit growth intervals. Large banks must provide additional capital requirements to reduce the moral hazard of being "too big to fail."

Strict Capital Deduction Limits

(B) For minority gains, goodwill, deferred tax assets, and non-consolidated investments in common equity of financial institutions, capital requirements have changed. This includes unrealized gains on debt...