Notes, summaries, assignments, exams, and problems for Economics

Y=C+I+G

Y=Co +\- @(Y-To) + Io + Go and/or +Xn

Y=Co+\- 1/@ - @To+Io+Go and/or + Xn 

Y - 1/@ = Co - @To +Io + Go and/or + Xn

Y(1-@) = Co - @To + Io + Go and/or + Xn

Y=Co - @To + Io + Go and/or + Xn

                 1 - @

C= Co + 1/@*d --- taxes

  = Co + @ (y-Io) --- no taxes

yd= y- To

K = 1/1-mpc

k= 1/mps

DI= c+s

APC = C/DI

APS = S/DI

MPC = 1 / 1-@

MPS = 1 / @

Multiplier = 1 / 1-mpc or 1/mps

xn = x-m

Ca = C +/- mpc * tx

Sa = S +/- mps * tx

Aggregate Demand - Total value of real aggregate output that both sectors of the economy are willing to purchase at some AVG price.

AD = L(p)

Investment rates, future business expectations, Technology, Degree of excess capacity, Business Taxes

Aggreagate Supply- Total value of real Aggregate output that will be...

Principles of Economics

Scarcity and Economics

Scarcity refers to the limited nature of society's resources. Economics is the study of how society manages its scarce resources.

How People Make Decisions

1. People Face Tradeoffs

Every decision involves tradeoffs. A significant tradeoff society faces is between:

• Efficiency: When society gets the most from its scarce resources.
• Equality: When prosperity is distributed uniformly among society's members.

Tradeoff Example: To achieve greater equality, income could be redistributed from the wealthy to the poor. However, this can reduce the incentive to work and produce, shrinking the overall economy.

2. The Cost of Something Is What You Give Up to Get It

Decision-making requires comparing the costs and benefits...

Analysis of Business Environment

Companies and organizations are open systems that are in continuous interaction with the environment. Therefore, we must consider external factors (the environment) that may affect our business. The company does not control the environmental factors. Those are considered strategic factors that can have a significant impact (positive or negative) on the results of the company.

There are two types of environment:

• The general environment (common to all firms operating in the same social, economic, political, and technological context - PESTEL analysis)
• The competitive or specific environment (different for each sector - Porter's Five Competitive Forces analysis).

1. Analysis of the General Environment (PESTEL)

Political...

Labor Day

Time is measured in days, weeks, or months that the employee is engaged in work.

Duration of the Day

The duration of the day must be agreed upon in the collective agreements or employment contracts within the limits established by law. The working day is measured in hours.

• Daily Weekly: Maximum duration: 40 hours per week.
• Working day: According to the ET, it cannot exceed 9 hours.
• Special Days: Activities and characteristics of some sectors can make necessary additions or reductions in working hours.

Breaks

The minimum periods of rest established in the collective agreement and the ET must be respected.

• Rest in the day: More than 6 hours: minimum 15 minutes; up to 6 hours: not required. Under 18 years: at least 15 minutes.
• Minimum closing

Approaches to Business Market

Production Orientation: Industrial Revolution

Characterized by the principle that all produced goods are sold. This approach prevailed during the Industrial Revolution, where new products were readily sold.

Product Orientation: Since the First Half of the Nineteenth Century

The focus shifted to producing goods with a certain degree of quality, assuming they would sell at an acceptable price.

Sales Orientation: Economic Growth Since the Second Half of the Nineteenth Century

A strong sales network was seen as the solution to output production in a competitive environment.

Marketing Orientation

Achieving long-term goals. Marketing is often used synonymously with advertising, sales, and market research. It can have negative...

Managing Business Taxes in Argentina

When you want to establish a business in the city, you must register for Gross Income Tax.

Understanding Different Levies

• MLP (Silver City): Local governments do not charge taxes, but rather levies, the proceeds of which are earmarked for a particular purpose at the same rate.
• Services: Not required, may be provided by the state or by individuals. The amount payable depends on the use/consumption made.
• Taxes: Required by law; only the state may collect payments. The amount payable is the same for everyone, regardless of other aspects.

Simplified Tax Regime

Monotributo: A regime for small taxpayers that simplifies tax collection. If a person's annual sales do not exceed $144,000, they can enroll. This removes the...

Production: Definition and Objectives

Production is the process by which certain significant items, work, machines, working people, or knowledge are transformed into consumer products, goods, or services.

Production Goals

• Ensure that delivered products or provided services are requested, both in the amounts and on the dates agreed upon with the customer.
• Ensure that these products or services are manufactured or provided within the expected costs, and that these costs are minimal, for greater profit.

Description of Output

This is to determine in detail the procedure to be followed and the means employed to produce the products or services.

Stages of the description of the production:

• Define the parameters of the production process
• Determine the necessary

Monopoly and Consumer Harm

Monopolies reduce production to raise prices, benefiting at the expense of consumers. This conflict of interest differs from perfect competition. Monopolies cause inefficiency: consumer losses exceed monopolist gains. By producing less than where marginal cost equals market price, monopolies increase profits but harm consumers.

Reducing output and raising prices above marginal cost allows monopolies to capture consumer surplus as profit, creating deadweight loss. In a monopoly, total surplus (consumer surplus and profit) is less than in perfect competition, resulting in a net loss to society. Individuals who value the good above its marginal cost are left without it due to high monopoly prices, indicating a market failure....

Key Business Concepts

Production Process: The organized, logical steps workshops must follow to achieve the desired product.

Employment Contract: An agreement between a worker and a company where the worker commits to work under the employer's direction in exchange for wages.

Collective Agreement: A contract negotiated and formalized by employer and employee representatives to regulate working conditions for a specific period.

Warehouse Management (Stock Security): Maintaining a reserve amount in storage to cover potential damages or shortages.

Investment Spending: An entrepreneur's expenditure on goods that aid in producing other goods. These assets, such as machinery or tools, typically last more than a year. (Examples: location, machinery, tools,...

Understanding E-commerce: Definition and Scope

Electronic commerce, commonly known as e-commerce, consists of the purchase and sale of products or services through electronic media, such as the Internet. It also encompasses a wide range of activities including promotion and publicity, product and service marketing, corporate image building, integral marketing strategies, facilitation of contacts between trading parties, post-sales support, market monitoring and research, and support for electronic business sharing.

E-commerce for Businesses: A Strategic Channel

For a company, e-commerce serves as a vital commercial channel and a means for information provision. It enables businesses to identify potential customers and significantly improve communication...