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

Core Economic Definitions

• Income: The value of a factor of production in a given period.
• Interest: The value of capital services or the price of money.
• Job Offer: Labor supplied by families or workers, which depends on wage levels.
• Equilibrium Wage: The rate generated by the free interplay of supply and demand, even when a minimum wage exists.

Employment and Labor Statistics

• Employment Policy: A set of plans and procedures intended to reduce unemployment, which is a critical issue for developed societies.
• Activity Rate: Active population divided by the working-age population.
• Unemployment Rate: Unemployed population divided by the active population.
• Occupancy Rate: Employed population divided by the active population.

Types of Unemployment

• Cyclical: Linked

From Market Crisis to the Great Depression

The stock market crash forced banks to attempt to restore stability. While some credits were granted, banks struggled to survive, and many companies saw their possibilities wiped out as they were forced into the suspension of payments.

This crisis severely impacted business investment. The overproduction that began in 1929 triggered falling prices and reduced demand, which particularly devastated the agricultural sector and led to widespread banking bankruptcies.

Social Consequences of the Depression

The Working Class

Workers in industry and services were primary victims of the crisis. They faced lower wages, reduced working hours, and mass unemployment. Without social security coverage, the lack of job...

B1. Inflation

Inflation is the continuous and widespread process of rising prices in an economy over time.

Deflation

Deflation is the process in which prices are reduced in an economy over time in a continuous and widespread manner; it is the phenomenon contrary to inflation.

Measuring Inflation

The inflation rate between two periods is measured by the percentage increase in the CPI (Consumer Price Index) between the first and second period.

Formula: Inflation = ((CPI2 - CPI1) / CPI1) x 100

Causes of Inflation

• Demand-Pull Inflation: Any factor that shifts the aggregate demand curve to the right, such as an increase in public consumption spending or investment, generates inflationary pressure.
• Excess Money in Circulation: Uncontrolled growth of the money

Aggregate Demand and Supply

Aggregate demand represents the total spending across different sectors of the economy. Aggregate supply is the total amount produced and sold to companies within a given period.

Demand and Supply Curves

• Aggregate demand curve: Relates the demand for all goods and services to the price level.
• Aggregate supply curve: Describes the relationship between aggregate output and aggregate price levels.

Economic Equilibrium and Production

The breakeven point occurs when all products are sold without excess supply. Potential production is the state in which all productive resources are fully employed. A shift in the aggregate demand curve is known as an aggregate shock.

Unemployment Analysis

Effects of Unemployment

• Decrease in real

Accounting Treatment of Information

Accounting is the economic science that studies business assets, standards, and the scientific grounds for registering a company's economic information. Its primary objective is to provide accurate economic data to various stakeholders.

A) Business Heritage: Concept

Business heritage is the set of assets, rights, and obligations held by a firm, valued in relation to its intended purpose. Assets are items of value; rights are amounts owed to the company; and liabilities are debts owed to suppliers.

The relationship between these elements is defined as follows:

• Net Worth (Equity): Assets + Rights - Obligations
• Active: Assets + Rights
• Passive: Obligations
• Formula: Net Worth = Active - Passive

The economic structure reflects...

The Marketing Planning Process

The marketing planning process.

Strategic Marketing (Marketing estratégico)

This phase includes:

1. External analysis — to discover the opportunities and threats in the environment and market.
2. Internal analysis — assessment of the company’s strengths and weaknesses; to assess whether materials, human resources, knowledge and technology are sufficient to meet the objectives.
3. Setting objectives and strategy — objectives are set and the marketing strategy is designed to achieve them.

Operational Marketing (Marketing operativo)

This plan involves:

1. Deciding commercial actions to be developed; the company uses four instruments: product, price, distribution and communication.
2. Specifying resources needed to implement the

Financial Service Company Operations

For a company to begin, it must have resources, including human resources. To utilize these, they must pay a price; the company has to consider how to pay, i.e., how to finance them. Once this is achieved, the company will need money to pay employees and raw material premiums, so it needs to continually finance itself.

Core Financial Functions

1. Financial planning: What are the future capital needs? What funding will be needed for the next investment to undertake?
2. Investment decisions: What is the best use of financial resources? What are the most profitable investment projects for the company?
3. Obtaining funding: What is the best way to achieve them? They will have to evaluate the available alternatives.
4. Control

ZUR Map and Industrialization Metrics

Map of the ZUR. It represents the degree of industrialization in the 83-ZUR from quantitative data (k 90). Map circles are used to locate the degree of development of each province during the reindustrialization. It uses colors to represent the percentage of the map subsidized. Investments provides the number of projects undertaken in each ZUR. Source: Investments is composed by Molinero, N.O. Méndez and scale.

ZUR Creation and Purpose

The ZUR were created before the industrial crisis of 1975 in order to create new activities that generate employment and diversify industry. To be created in 1983, ZUR were implanted in Galicia, Asturias, the Nervión area, Barcelona, Madrid and Cádiz Bay. Businesses established...

Market Classification: Key Criteria and Types

Markets are classified based on several fundamental criteria: geographic area, type of offer (goods or services), time horizon for price formation, and the nature of price competition.

1. Classification by Geographic Area

• Local Markets

  These markets have a reduced geographical scope, typically limited to a city or a province.

• Regional Markets

  These integrate multiple locations or cover a defined geographical region.

• National or Internal Markets

  These encompass transactions conducted within the boundaries of a single nation.

• Global or International Markets

  This category includes all transactions occurring between different countries or across various international markets.

2. Classification by Type of Offer

• Goods

Market Structures

• Monopoly: An imperfectly competitive market characterized by a single firm and a multitude of buyers.
• Oligopoly: An imperfectly competitive market characterized by a few producers and many buyers.
• Monopolistic Competition: A market with a multitude of buyers and sellers where producers focus on product differentiation.

Supply and Demand

Demand for a commodity determines the amount of the asset that buyers want to purchase at each price level.

Factors Affecting Demand

1. Price of the goods: Moves inversely to price; if the price rises, demand falls.
2. Income level of consumers: The relationship between consumer income and demand depends on the type of asset.
3. Price of related goods: A substitute good meets consumer needs in much the same