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

Understanding Capacity and Performance

Restriction: Factors limiting system performance and restricting production output.

Capacity: The maximum number of units an installation can receive or produce within a given period to meet demand.

Capacity Planning Horizons

• Short-term: Less than one year.
• Medium-term: 1 to 5 years.
• Long-term: Greater than 5 years.

Types of Capacity

• Planned Capacity: The ideal maximum theoretical yield of the production system design.
• Effective Capacity: The operating limits a company expects to achieve based on staff and equipment availability.

Performance Metrics

Utilization Rate: The percentage of design capacity reached. Calculated as: (Actual Output / Design Capacity) × 100%.

Efficiency: The percentage of effective capacity...

Fundamental Concepts in Macroeconomic Theory

The Paradox of Thrift

How is the Paradox of Thrift defined?

The Paradox of Thrift states that, in certain economic models, for an economy to increase its overall savings, the government must increase its spending.

Defining Autonomous Variables

What is an autonomous variable?

An autonomous variable is a component that is determined outside the model and is independent of the level of income (Y).

Examples of autonomous variables include:

• Investment (I)
• Public Expenditure (G)
• Exports (X)
• Some components of Consumption (C) and Tax (T)

Exogenous Changes Increasing Equilibrium Income

List all possibilities for changes in exogenous variables that result in increases in equilibrium income.

Increases in equilibrium income...

IAS 12 Income Taxes: Objective and Scope

The purpose of International Accounting Standard No. 12 (IAS 12) is to prescribe the accounting treatment for income taxes. The main issue in accounting for income taxes is how to account for the current and future tax consequences of:

• The future recovery (settlement) of the carrying amount of assets (liabilities) that are recognized in an entity's balance sheet; and
• Transactions and other events of the current period that are recognized in the entity's financial statements.

Scope and Key Definitions

This Standard shall be applied in accounting for income taxes.

Key terms used in this Standard are defined as follows:

• Accounting profit: The net profit or loss for a period before deducting tax expense.
• Taxable

Basic Features of Spanish Economic Growth

In the second half of the twentieth century, Spain experienced significant economic growth. Income per capita grew at a rapid pace, driven by institutional modernization. This period marked the economic and political opening of Spain to the rest of the world.

Measuring Economic Development: Per Capita Income, Exchange Rates, and PPPs

International comparisons of economic development are typically made using income or output per capita. These ratios are homogeneous, easy to calculate, and summarize the economic development level of a community. Due to challenges in converting national currency values, a common unit is needed to express true parity. This is achieved through:

• Exchange Rates: These reflect

The Global Challenge of Economic Inequality

Nowadays, economic inequality has become one of the most important social and economic issues worldwide. While some people believe that technological progress and economic growth benefit society as a whole, others argue that they mainly favour the wealthy and increase social disparity. There is growing concern that unregulated growth may widen the gap between rich and poor in the coming decades. This essay will argue that proactive intervention is necessary because automation disrupts labor, wealth concentration persists, and social mobility is declining.

The Impact of Automation on Labor Markets

One of the main reasons why inequality persists is that automation and artificial intelligence may negatively...

Understanding Organizational Environments and Culture

Key Concepts and Strategies

Direct Investment Strategies

1. What are the three main strategies for direct investment?

Answer: Greenfield venture, Acquisition, Joint Venture

Business Intelligence

2. What approach uses sophisticated software to analyze internal and external data for patterns and trends?

Answer: Business Intelligence

Types of Cultural Culture

3. What are the types of cultural culture?

Answer: Adaptability, Achievement, Involvement, and Consistency

Real-Time Information and Strategic Decision-Making

4. According to Eisenhardt (1989), how does the use of real-time information impact the speed of the strategic decision process?

Answer: The greater the use of real-time information, the greater...

SMALL BUSINESS:Any independently owned and operated business that is not dominant in its competitive área.

SHARING ECONOMY

• An economic model involving the sharing of underutilized resources 

•  Entrepreneurs earn income by renting out an underutilized resource such as lodging or vehicles 

•  Uber is an example 

•  Referred to as the “gig economy” 

• Are workers independent contractors or employees? 

EQUITY FINANCING:Referred to as equity financing because the owner uses real personal assets rather than borrowing funds from outside sources to get started in a new business.

Can also obtain equity financing by finding investors for their operations and selling stock in the business to family members, friends, employees or other investors.

VENTURE

Reasons to Use Derivatives

• Hedging: Mitigates risks related to interest rate, stock price, exchange rate, and commodity price volatility.
• Speculation: Utilizes high leverage for potential huge returns, though it remains extremely risky.

Types of Derivative Assets

Derivatives exist on a wide variety of assets:

• Options: Trade on individual stocks, market indexes, metals, interest rates, and futures contracts.
• Forward and Futures Contracts: Trade on agricultural commodities (wheat, live cattle, precious metals like gold and silver), energy (crude oil, gas, and heating oil), foreign currencies, U.S. Treasury bonds, and stock market indexes.
• Swap Contracts: Trade on interest rates, foreign currency, and other assets.

Market Structures

• Listed Derivatives:

Essential Financial and Banking Vocabulary

• A.T.M.: Automated Teller Machine; cash dispenser.
• Banknote: A piece of paper money.
• Bitcoin: Digital currency which allows payments to be sent from one party to another without going through a financial institution.
• Borrow: To obtain money which must be returned or reimbursed.
• Broke (be broke): To have no money.
• Budget: The amount of money available or needed for a specific use.
• Cash: Coins or banknotes (not cheques); actual money paid, not credit.
• Cash dispenser: An automatic machine from which a bank customer can withdraw money.
• Cashier: A person dealing with cash transactions in a bank, shop, etc.
• Cheque (US: check): A written order, on a specially printed form, to pay the stated amount from one's bank account.