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

Job Offer

Understanding the aggregate job offer involves analyzing different curves that indicate the quantities of labor individuals are willing to exchange for a determined wage. This is closely related to the population. If there are many births, this causes an increase in the job offer. Conversely, if births decline, the population stagnates or falls, leading to a decrease in future labor supply.

• Migration will cause a drop in the labor supply in the country of origin and an increased supply of labor in the destination country.
• Societal values play a significant role in labor. One consequence of the equality of women and their changing roles is the incorporation of female social work outside the home. This causes an increase in labor supply.

Key Economic Concepts

Assumptions: Scenarios are taken as certain without testing them. Model: Partner assumptions and develop theories. Microeconomics: This branch of economics studies the behavior of individual entities (market, household). Macroeconomics: This is the behavior of the economy in general (unemployment, inflation). Positive Economics: Explains and analyzes the causes of economic behavior. Normative Economics: What should be. Factors of Production: Factors of production (goods or services) and primary products that are consumed. FP: Land, Labor, Capital and raw materials.Shortage: Limitation of resources. Economic good: A limited range.

Opportunity Cost: When we decide to use a resource in one way and not another. PPF: Maximum

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:

Market Demand and Sales Analysis

Global demand (or total demand) is the total amount of purchases of a product during a specific period of time. Company demand is the amount of purchases of a product from a particular company during that period.

Suman estimates the total sales made by a company dedicated to commercializing this product.

Market Share

Market share is a company's participation in the total value of sales, expressed as a percentage.

The Consumer

The consumer is the person or collective entity that satisfies a need or desire using a particular product.

Target Group (Target Market)

The target group of consumers is the entire set of people toward whom our product is directed. They need not be current customers; they are potential buyers of... Continue reading "Market Demand, Consumer Behavior, and Product Marketing Fundamentals" »

Core Concepts of Inventory and Stock

Key Definitions

• Stock (General): A collection of products accumulated in space and time, possessing economic value, remaining stored until used.
• Economic Stock: Material belonging to the firm, which is either in transit or at fixed points (e.g., supplier warehouses).
• Physical Stock: Items that have weight and volume, occupy physical space, and possess economic value. This stock must be managed.
• Assortment: A set of different products (variety) offered.
• Warehouse Stock: The total amount accumulated in the warehouse. Note: A wholesaler typically maintains a large stock but a small assortment.

Provisioning and Inventory Policy

Provisioning Process

Provisioning is the set of operations carried out by the company to source... Continue reading "Stock Management Principles and Inventory Types" »

Understanding Public Externalities

Public externalities are generated when an action has an effect on third parties. The externality can be positive or negative, depending on the effect generated.

• A public good is a good or service that is non-rival and non-excludable.
• For example, public education can be considered an externality. It is non-rival and non-excludable, generating a positive externality because its private cost is less than the social cost.

Real GDP and Economic Growth Measurement

Real Gross Domestic Product (GDP) measures a country's economic growth. The index indicating the annual percentage of GDP growth is the GDP deflator, which is obtained by dividing nominal GDP by real GDP and multiplying by 100.

The key difference between nominal... Continue reading "Key Concepts in Microeconomics: Markets, Growth, and Pricing" »

Product Cost

Acquisition

Purchase of primary materials and other resources + cost of the procurement function - Discounts, commissions, and development shopping.

Storage

Costs originating from holding stock in the warehouse.

Manufacturing

Costs generated at different levels of the manufacturing cycle (transforming primary materials into completed products).

Cost Imputation to Product

Direct Costs

Costs that can be identified with the specific product that caused them.

Indirect Costs

Common costs that are not attributed to any particular department or product.

Semidirect Costs

Costs that cannot be applied directly to a product but can be allocated to a shop, section, or department.

Cost by Level of Activity

Fixed Costs

Costs incurred to make the company operational.... Continue reading "Product Cost, Imputation, Activity Levels, and Order Points" »

NIC / State Cash Flow: Objective

This Standard requires companies to provide information about historical movements in cash and cash equivalents through a cash flow statement classified into operating, investing, and financing activities.

Scope

Companies must prepare a cash flow statement following this Standard's requirements, including it as part of their annual financial statements.

Benefits of Cash Flow Information

The cash flow statement, used with other financial statements, helps users evaluate changes in a company's net assets, financial structure (liquidity and solvency), and ability to adapt to changing circumstances by modifying receipts and payments. It is useful in assessing the company's overall financial health.

Definitions

• Cash comprises

Understanding Quality Costs: A Detailed Classification

Quality costs are expenditures incurred to ensure that products or services meet quality standards, or those that arise when they fail to do so. Understanding and categorizing these costs is crucial for effective quality management and overall business improvement. This classification breaks down quality costs into three primary categories: External Failure Costs, Appraisal Costs, and Prevention Costs.

External Failure Costs

These costs arise when products or services fail to meet quality standards and are detected after delivery to the customer. They directly impact customer satisfaction and brand reputation, often leading to significant financial losses.

Costs Related to Claims Processing

Economic Activity: Production, Distribution, and Consumption

Economic activity is the process by which we obtain products and services that cover human needs. It has three phases: production, distribution, and consumption. The economy is the science that studies the goods and services to be produced, the amount, and investment.

Economic Sectors

• Primary sector: Designed to obtain food and raw materials.
• Secondary sector: Transforms raw materials into processed products.
• Tertiary sector: Services.
• Quaternary sector: Includes research, management, and information processing.

Economic Concepts

• Profit: The difference between expenses and income.
• Good: An object that satisfies a need and has a value.
• Service: A provision intended to satisfy a need.
• Cost of