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

Money

A commonly accepted medium of exchange.

Merchandise Money

It has the same value as the monetary unit as merchandise (hardness, portability, divisibility, homogeneity, limited supply).

Fiat or Token Money

A good that has little value as a commodity but keeps its value as a medium of exchange because people have faith in the issuer who guarantees the value of the paper or coins and ensures the quantity is limited.

Full-Bodied Paper Money

Certificates of paper that were backed by gold deposits of equal value to the certificates.

Promissory Note Money

Medium of exchange for the debt of a company or person.

Banking

Bank debt is what allows the depositor to withdraw an amount of money upon request.

Legal Tender

Token money issued by an institution that...

A. Cost of Equity Financing (Partner Resources)

The contributions of partners or reservations do not impose a commitment on the company to pay a specific interest or dividend. Calculating these costs can be difficult. A partner in a company, either through acquiring shares at creation or purchasing listed shares, assumes a very high risk, expecting a return that compensates for this risk. In any case, these resources carry an opportunity cost to the extent that the profitability achieved using them within the enterprise must be higher than what is achieved using these resources externally.

B. Cost of External Resources (Medium and Long Term)

There is always a contract specifying the loan conditions, including the interest to be paid. To calculate...

Resolving International Trade Conflicts

• Bilateral negotiations between the countries concerned.
• Resolution through established WTO agreements.
• Retaliation measures if the offending country fails to comply with WTO standards.

Foreign Exchange Markets

International buying and selling operations rely on the foreign exchange market, which is the busiest in the world and operates 24 hours a day.

Key Concepts

• Nominal exchange rate: The price of one currency against another, determined by supply and demand. Foreign demand is driven by factors such as tourism and foreign investment.
• Depreciation: The value of a currency declines, which typically increases exports and reduces imports.
• Appreciation: The value of a currency increases.

Purchasing Power and Competitiveness

The...

Economic Policy

Economic policy involves state intervention in the economy to achieve economic objectives, such as economic growth, full employment, and price stability. Key organizations directly implement economic policy. Indirectly, various groups like banking institutions, large multinationals, and entrepreneurs' associations also play a role.

Types of Economic Policy

• Fiscal Policy: Intentional state action to increase or decrease economic activity through funds and taxes.
• Monetary Policy: Measures taken by the central bank to maintain price stability by varying the amount of money in circulation.
• Foreign Policy: State interference to regulate transactions with other countries, such as changing the currency exchange rate.
• Rental Policies: Aim

(3P) Product Distribution

A distribution channel is the medium through which the products are delivered from the factory to its final consumer. They can be classified according to their length:

• The direct channel is going from producer to consumer without passing through any intermediary.
• The channels are usually short, from the producer to a retailer who sells it directly to the final consumer product.
• The long channels are those in which producers sell to wholesalers, which are companies that in turn sell to other companies.

According to the Link:

• When the relationship is between companies that perform the same function in the distribution chain, connecting channels are called horizontal.
• When the relationship between companies engaged in different

Banking Systems and Financial Operations

Banks function by channeling savings into investments, facilitating the transfer of surplus capital, and financing productive activities, trade, and banking services. These for-profit companies conduct operations that are classified into two categories:

• Passive Operations: The collection of money through bank deposits and investment funds.
• Active Operations: Loans and credits provided to economic agents.

Savings banks differ from commercial banks due to their non-profit, charitable nature. These entities are integral to the financial system, which, in the Spanish model, consists of two main pillars: the banking system and other financial institutions.

The Demand for Money

The demand for money reflects the...

The Great Crash of 1929

The Crisis of 1929, also known as the Great Crash, was probably the greatest economic crisis to confront the capitalist system. On Thursday, October 24, 1929, the Wall Street stock market crashed.

Triggers of the Economic Collapse

The main triggers were the fall in agricultural prices in international trade and credit restrictions. Other reasons included:

• The German economic collapse.
• Overproduction (due to World War I, as countries developed their own industries to supply products that war-torn Europe could no longer export).
• Significant debts for loans, among others.

The financial gains of the great bull market were shattered on "Black Thursday" when the value of shares on the NYSE collapsed. Stock prices fell that day and...

Economic Consequences of Unemployment

• Decreased aggregate demand.
• Increase in the public deficit.

Social Effects of Unemployment

• Negative psychological effects.
• Discrimination.

Factors Influencing Unemployment

• Demographic factors.
• Technological changes.
• Openness to international trade.
• Phase of the economic cycle.

Policy to Combat Unemployment

• Act on the Aggregate Demand (DA).
• Act on the Aggregate Supply (OA).

9.5. The Economic Cycle

The economic cycle involves fluctuations in Gross Domestic Product (GDP) and employment, driven by factors leading to expansion and recession.

Phases of the Economic Cycle

• Expansion
• Peak
• Recession
• Trough (Background)

10.1. State Intervention in the Economy

Keynesian Economists

Followers of J.M. Keynes:

• They reject the hypothesis that