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

Global Crisis Expansion

The U.S. crisis reverberated across Europe and the world. Capitalist prices plummeted, unemployment soared, and industry and international trade plunged.

The mechanisms for this crisis expansion were:

• Declining U.S. prices due to intense competition.
• Falling demand, reduced imports, and exports.
• Decreased investment and loans due to the stock market crash. U.S. capital repatriation spread the crisis.
• The collapse of world trade due to protectionist policies in the U.S. and other countries. International trade plummeted, affecting food-exporting countries in Latin America and Asia. Reduced income prevented loan repayments, further decreasing demand from industrialized nations. Japan and Latin America were also significantly

Oligopoly

An oligopoly refers to a market dominated by a small number of sellers offering similar products to a large number of buyers. These sellers can either collude to set prices, effectively acting as a monopoly, or compete against each other.

Collusive Oligopoly

In a collusive oligopoly, sellers cooperate to fix prices and allocate market share. This practice harms consumers through higher prices and reduced choice. Such collusion is often illegal and subject to penalties.

Price Leadership

One form of collusion involves price leadership, where a dominant firm sets prices, and other firms follow suit.

Non-Collusive Oligopoly

A non-collusive oligopoly occurs when sellers act independently and compete on factors like price and quality, benefiting...

Orthodoxy

Under pressure from the IMF, Belaúnde was forced to reduce the budget, increase public utility rates, and devalue the national currency, the sol. Thus, the currency was worth less, and more had to be spent to import a product. The IMF measures resulted in a severe recession (contraction of demand), which impacted the citizens' finances. The poorer citizen consumes less and, as they consume less, pays less tax. In 1984, the Belaúnde government fell into arrears with the payment of its external debt.

Heterodox Program

The payment of external debt was limited to 10% of Peruvian exports. A new currency, the inti, was introduced, replacing the devalued sol. Basic prices, wages, and the exchange rate on the dollar were frozen. By avoiding

Market Equilibrium and Its Variations

Market Equilibrium: Because the slopes of the demand and supply functions are contrary, there will be a point where they intersect. This point is called the equilibrium quantity. The market equilibrium price represents an agreement between buyers and sellers where the amount consumers want to purchase matches the amount that producers manage to sell.

Elasticity

Elasticity measures changes in quantities demanded or offered in relation to good prices, other good prices, other prices, or consumer income. It is a proportional ratio between the variation in the quantity and the proportional variation of the variable we want to compare it to.

• Demand Price Elasticity: A ratio that measures the relative changes in

Key Economic Indicators

Introduction

Economic indicators help us understand the national economic situation. But who studies these indexes?

• Microeconomics: The study of how households and firms make decisions and interact in the market.
• Macroeconomics: The study of phenomena that affect the whole economy.

Consumer Price Index (CPI)

The CPI is an indicator of the cost of goods and services purchased by a typical consumer.

How is the CPI Calculated?

1. The basket is set.
2. Prices are found, and the value of the basket is calculated.
3. A base year is chosen, and the index is calculated.
4. The inflation rate is estimated.

Dollar

The dollar is the most widely used foreign currency in Chile and is responsible for various transactions, mainly abroad.

Gross Domestic Product

Supply Chain Management

Effective supply chain management ensures product availability in the required quantity and quality, at the right time, and under optimal financial conditions. It involves three key functions:

Core Functions

• Purchasing: Acquiring necessary raw materials, products, and/or services in the right amounts, timing, quality, and at the lowest cost.
• Storage: Ensuring timely access to items in adequate quantities and qualities.
• Inventory Management: Maintaining optimal stock levels to maximize service and minimize costs.

Purchasing Decisions

Key parameters considered in purchasing decisions:

Decision Parameters

• Quality: Product characteristics ensuring suitability for intended use.
• Price: Total cost of the purchased product, aiming for

Recruitment of Human Resources

6.1 Introduction to Recruitment

Enterprises can explore both the external and internal markets to acquire human resources.

In today's dynamic environment, recruitment is a proactive process where companies take the initiative in pursuing human resources. Its importance cannot be overstated, as it significantly determines the success of the entire recruitment process.

Recruitment Definition: A set of activities and processes undertaken to attract a sufficient pool of qualified candidates, enabling the organization to select the most suitable individuals to meet its workforce needs.

Adherence to relevant regulations governing recruitment is crucial.

Purpose and Importance of Recruitment

• Determine current and future recruitment

Essential Business & Financial Definitions

• Start-up: A new business

• Benefit: An advantage or gain

• Idea: A concept or thought

• Problem: A challenge to solve

• Solution: A way to solve a problem

• Product: A good for sale

• Service: A helpful action or work

• Customer: A buyer or user

• Target Audience: The intended group of people

• Competition: Other businesses in the market

• Business Plan: A roadmap for a business

• Marketing: Promoting products or services

• Funding: Money for a business

• Earn: To receive money for work

• Income: Money received regularly

• Sales: Transactions of goods or services

• Profit: Money earned after costs

• Goods: Physical products

• Savings: Setting money aside

• Budget: A plan for money management

Synonyms for Key Business Terms

• Start-up: New company, new venture

• Benefit:

Economic Expectations

Economic expectations are assumptions people make about the future. They guide individuals, businesses, and governments in their decision-making processes. Companies analyze their own situation, their competitors, and the economic climate to adapt their strategies. This includes investment and production decisions, which can shift the supply curve.

Industrial Structure

In developed countries, most people work in the tertiary sector (services), while manufacturing and agriculture are less prominent. This pattern differs in emerging and non-developed countries.

GDP and Economic Well-being

Gross Domestic Product (GDP)

GDP measures the total value of goods and services produced in an economy annually, indicating its size and evolution....

Microeconomics vs. Macroeconomics

Microeconomics studies the individual decisions of economic decision-makers (companies and consumers as individuals).

• Macroeconomics studies the economy as aggregate decisions of economic decision-makers (groups of consumers, producers, and the government).
  • The government is a group that oversees a community, establishing rules and administering public policy.
  • Some governments are more interventionist at the economy (North Korea, Cuba) than others (US). They make key decisions about what will be produced, how it will be produced, and who will receive the outputs supplied by business.
  • The role of government is to create and administer policy at local, national, and international levels.
  • Locally: they establish rules,