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

1. MINIMUM STANDARDS

Rule 102 of the ILO: 100% of the workforce should be protected for at least 20% of the economically active population (PEA). 50% of the total population protected (PTA). 100% of the polar groups (risk groups), the very old or very minor (GP). 100% of excluded groups.

1. Describe the characteristics that motivate the German model and the English model.

   German model:

   The industrial revolution - Public assistance by Asin - there was not a labor law - the concentration of labor - Accidents at work.

   English model:

   - Unemployment - housing - death - the German model is limited to persons who had an employment relationship.

   Bismarck Model: Characteristics

   1. Tripartite
   2. Governance
   3. Specialized
   4. Compulsory employer and employee contributions

2. English Model:

Labor Market Theories

Other Visions: Implicit Contracts: This theory suggests that companies guarantee stable worker salaries, regardless of the economic situation. During a recession, companies maintain higher wages than the market rate, preventing wage decreases and low production. This contrasts with market pressures that would push for lower wages and reduced output.

The Inside and Outside: This theory differentiates between employees within a company and those outside. It recognizes that internal workers possess company-specific training and knowledge, making them difficult to replace. External hiring involves rotation costs, including learning, training, and the expense of firing existing staff.

Efficiency Wages: This concept links worker...

Accounting Books

Accounting books chronologically record all the financial transactions that take place in a company.

Inventory Book and Financial Statements

1. Initial assessment
2. Quarterly balance sheets of amounts and balances of checking
3. Annual accounts

Minute Books

Required if it is a company.

Generally Accepted Accounting Principles and Standards

1. Code of remaining trade and commercial law, SME PGC
2. PGC
3. Its sectoral adjustments
4. Standards development on what has been established
5. Other standards of Spanish law

Annual Accounts

1. Balance Sheet: The company's financial situation at a certain financial close.
2. Income Statement: The company's performance during an exercise, the result of its activity.
3. Statement of Changes in Net Worth: Changes in the composition of the

Economic Agents and Their Roles

Item 2: Operators

Producers who supply goods or services in exchange for money receive them. Consumers are those who consume goods or services offered by the producers in exchange for money. In a simple economy, all economic transactions will always occur between households.

Companies

The company provides property, which will be units of domestic consumption, and in turn, inputs. Its main function is to produce. The objective is the maximization of profit, which is achieved by increasing the distance between production costs and revenues collected from sales.

Create the value added to existing productive factors, which increases the units of these factors by combining them in a controlled and coordinated manner to...

Key Business Approaches

3 Approaches:

• Work and organizations (planning, organizing, controlling)
• People (communication, motivation, leadership, work group formation)
• Production and operations

Essential Entrepreneur Skills

5 Critical Entrepreneur Skills:

• Leadership
• Communication
• Decision-making
• Teamwork
• Strategic Vision

Common Entrepreneurial Mistakes

5 Mistakes:

• Unclear goals
• Trying to prove you're smart
• Greed
• Hiring people they like instead of need

The 3 C's of Business

3 C's:

• Company
• Customers
• Competition

Start-Up Costs

Start-Up Costs:

1. Expenses (legal structure, workspace, remodeling, stationery, logos, web page)
2. Purchase assets (inventory, office supplies)
3. Ongoing monthly expenses (rent, utilities, payroll, insurance)
4. Monthly sales projections

Business Plan Components

Executive

Economic Policies Overview

Economic policies are the ways in which the state intervenes in the economy to achieve specific economic objectives.

Types of Economic Policies

Fiscal Policy

Fiscal policy involves the government's actions regarding public sector revenue (fundraising) and expenditure to influence the economy.

• Discretionary Fiscal Policies: Intentional government actions to influence income or expenditure.
  • Public Works Programs: Aim to increase production, employment, and infrastructure.
  • Employment Plans and Training: Short-term hiring and worker training initiatives.
  • Transfer Programs: Regular or temporary payments to protect disadvantaged groups.
  • Tax Rate Modifications: Adjusting tax rates to influence disposable income and consumption.
• Automatic

Glossary of Economic Terms

A

Autarchy

A system of a state that intends to be economically self-sufficient and could be met from its own resources, eliminating imports.

B

Balance of Payments

An account that records transactions and international economic transactions made by a country for a year.

C

Constitution

The fundamental law of a state's organization. The first written constitution was in the U.S. and is still in force. In Spain, the first Constitutional text was drafted by the Cortes of Cadiz in 1812.

Corporatism

Political and economic doctrines advocating the integration of workers and employers in the same occupation into a single organization.

D

Deficit

A situation that occurs in an account, budget, etc., when costs outweigh gains.

Deflation

When...

Characteristics of the Imperfect Labor Market

Perfectly Competitive Market Features:

• Many suppliers and many demanders
• Homogeneous products
• Companies have no influence on price (price determined by supply and demand)
• No barriers to entry or exit

Labor Market Analysis:

Let's examine these characteristics in the labor market:

1. Many Workers and Many Companies:

This feature is met.

2. Homogeneous Labor:

This feature is not met. Workers differ significantly in age, capacity, development, and attitudes. Tasks performed, job locations, effort required, wage responsibility, and social prestige also vary.

3. Company Influence on Wages:

This feature is not met. Companies have influence on wages, which are not solely determined by the law of supply and demand. Both...

. 1.6 TYPE OF INVESTMENTS You have a lot of options for where to put your money as an investor. It is critical to carefully consider the various types of investments. Within each bucket, there are numerous investment options. Here are six types of investments to consider for long-term growth, along with information about each. We won’t discuss cash equivalents, such as money markets, certificates of deposit, or savings accounts, because those types of investment accounts are more concerned with keeping your money safe than with growing it. Stocks A stock is a financial investment in a particular organization. When you buy a stock, you are purchasing a share — a small portion of the organization’s earnings and assets. Organizations sell...

Product, Services, Brands (Chapter 8) – 12 & 14

1. Provide examples of the three levels of a product for an Apple Smartwatch.
   
   

1. 1. Core customer value (Psychological need of fundamental benefit): Communication, make life easier (i.e., photos, Safari)
   2. Actual product (Brand name, features, design, quality level, packaging): Apple Watch, iPhone
   3. Augmented product (Post-sale service, product support, warranty, delivery, and credit): ?
      
      

2. Fill in the blanks for the types of consumer products.