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

317 A slide along the same curve occurs when the quantity demanded changes as a result of a change in the price of that commodity. The shift occurs because any other factor varies.

318 Increase in the price of a good substitute; declining price of complementary goods, income growth (if it is a normal good), low income (if it is an inferior good), increased the public's preferences for that good.

319 Lowering the price of a good replacement, increased the price of complementary goods, income growth (if it is an inferior good), low income (if it is a normal good), drop in public preferences for that good.

361 A surplus is one in which, for a given price, the quantity supplied exceeds the quantity demanded. It is corrected when the producers, unable... Continue reading "Market Dynamics: Supply, Demand, and Equilibrium" »

The Incomplete Gold Standard and the Start of War

The onset of war necessitated increased state spending, leading to budget deficits. Governments faced the challenge of covering borrowing through higher taxes or printing money. To prevent excessive gold leakage, governments implemented two measures:

• Prohibition of gold exports without authorization.
• Suspension of convertibility, effectively collapsing the gold standard.

The Fin de Siècle Crisis (Late 19th Century)

The period around 1870 witnessed a shift known as the fin de siècle crisis. Production increased, and land values, rents, and wages rose. However, as Europe imported increasing amounts of agricultural products and materials from overseas countries at competitive prices, agriculture faced... Continue reading "Economic Impact of War and Financial Crises: A Historical Analysis" »

Accounting Fundamentals

Businesses rely on accounting information for decision-making. Accounting is an economic science that studies business assets, applying standards and scientific principles to record financial information. This involves statically observing a company's financial status and assets at a given time.

Accounting provides crucial information for informed decision-making. Its importance lies in generating and delivering quality data that accurately reflects the company's financial situation. The primary purposes of accounting are:

• To provide managers with information for decision-making and future planning.
• To enable owners to verify the protection of their interests.
• To inform employees about the company's performance, which affects

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

Accounting Standards

One of the objectives of Financial Accounting is to prepare financial statements for external users. Since this information, prepared by companies, significantly influences the decisions of users, it has been considered necessary to normalize the principles and rules used in its preparation. Accounting standards ensure that the accounting information disclosed complies with minimum standards of quantity and quality, setting quality requirements, the format to be disseminated, and the principles and rules of valuation to be used.

Spanish accounting standards are primarily contained in business law (Commercial Code, Corporations Law, etc.). The General Accounting Plan 2007 and the General Plan Small Business Accounting 2007... Continue reading "Understanding Accounting Standards and Financial Concepts" »

Key Elements of Internal and External Organization

Internal and External Organization: Employees, shareholders, board, customers, unions, government.

Skills Hierarchical Levels:

• Upper Management: Conceptual skills
• Management Rating: Humanistic
• Line Management: Technical skills

Systems in the Organization: Highly interdependent subgroups, considers open, dynamic, stochastic systems.

Properties of Systems: Objectives, performance measures, decision-making process, information flow.

Organizational Structure: Refers to the way in which organizations divide, combine, and coordinate activities, focusing on relationships between managers and employees.

Why is an Organizational Structure Important?

• Dividing work
• Assigning tasks
• Coordinating tasks
• Grouping work

Six

Causes of Unemployment

The unemployed population comprises people who are able to work and seek employment but cannot find it.

Neoclassical Theory

According to neoclassical theory, if the labor market operated freely and wages were flexible, unemployment would not persist. Any excess supply of workers would cause the market mechanism to adjust by lowering wages. Lowering wages would encourage companies to hire more workers, and unemployment would disappear. However, in reality, wage rigidity prevents the adjustment of supply and demand. This is often attributed to the actions of unions and government intervention. Unions strive to improve working conditions for workers, and the existence of a minimum wage, set by the state to ensure that people... Continue reading "Understanding Unemployment: Causes, Types, and Solutions" »

General Tax Base

The General Tax Base is calculated by adding the following balances:

• a) Positive or negative balance resulting from integrating and netting income and imputations following income:
  • Performance of work.
  • Performance of real estate.
  • Performance from movable capital: intellectual property, technical assistance, rental property, business or mine, sublease, and assignment of rights of image.
  • Income from economic activities.
  • Allocation of income from: Real Estate, controlled foreign company regime, transfer of image rights, investment institutions.
• b) Surplus of integrating and netting of gains and losses, not from the transfer of assets and liabilities, such as the additions of property and rights to the assets of the taxpayer, from, for

Understanding Unemployment

The term unemployment refers to the lack of work. An unemployed person is one who is part of the labor force seeking employment but without success. The constant movement of the working population, as a feature of modern economics, is one of the main reasons for unemployment, even when we are at full employment.

Types of Unemployment

There are several types of unemployment, the most significant being frictional and structural unemployment.

Frictional Unemployment

Frictional unemployment is caused by workers who invest time in finding employment. This type of unemployment is inevitable, as there is a constant process of job creation and destruction, along with a steady inflow of new workers into the labor market. When there... Continue reading "Understanding Unemployment: Types and Economic Impact" »

Timeline of Inventions and Events

• 1732: Darby invented coke
• 1733: Invention of the flying shuttle
• 1769: James Watt invented the steam engine
• 1785: Invention of the loom
• 1829: Stephenson invented the locomotive
• 1864: International Association of Workers
• 1869: Invention of the dynamo
• 1885: Invention of the explosion
• 1889: Second International
• 1897: Invention of the transformer

Agricultural Innovations

Norfolk System: Replacement of fallow by suppression of herbage allowed to leave no piece of land at rest and obtain arable crops that feed livestock.

Economic Policies and Systems

Free Trade: Economic policy that removes barriers to the free circulation of products between countries.

Market Economy: It resulted in production not for subsistence but for sale in... Continue reading "Key Events and Concepts of the Industrial Revolution" »