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

Classical Economics: Flexible Prices and Wages

The statement that prices and wages are flexible is central to the self-adjustment perspective of classical economists. This flexibility extends beyond product markets to factor markets, particularly labor.

If some workers temporarily face unemployment, they would compete for jobs by offering their services at lower wages. As wage rates declined, producers would find it more profitable to hire additional workers. Ultimately, classical economists believed that flexible wages would ensure that everyone who desired a job would be employed, leading to full employment in the long run.

Say's Law: Production and Demand

Description of Say's Law

Say's Law posits that the key to economic growth is not increasing... Continue reading "Economic Principles: Classical Self-Adjustment, Say's Law, and Business Cycles" »

Classical Management Theory

Frederick Taylor's Scientific Management

Key Principles of Taylorism:

• Scientific Study of Work: Tasks should be scientifically studied to identify the most efficient methods for performing them. This involves breaking down complex tasks into smaller, simpler steps and analyzing each step.
• Division of Labor: Dividing work between management and workers. Managers are responsible for the planning and scientific analysis of work processes, while workers are tasked with executing the standardized methods.
• Standardization of Tools and Techniques: Taylor emphasized the use of standardized tools and techniques to minimize variability and optimize efficiency.
• Time and Motion Studies: Taylor conducted time and motion studies to

Understanding Poverty in America

Defining Poverty and Its Scope

Political conflict over poverty in America begins with disagreement over its nature and extent, and then it proceeds to disputes over its causes and remedies. While many anti-poverty programs are largely regarded as federal programs, many allow states to set their own eligibility criteria and benefit levels, and are a blend of federal and state government funds. The official poverty rate in the U.S.A. has ranged between 11% and 15% in recent years. This official definition of poverty includes all those Americans whose annual cash income falls below that which is required to maintain a decent standard of living. The official poverty rate varies considerably among the states; poverty... Continue reading "Poverty, Public Health, and Healthcare in the United States" »

Have you ever come across a food product at the supermarket with a label saying Fair Trade? You may have wondered what exactly that means. Fair trade is an arrangement designed to help producers in growing countries achieve sustainable and equitable trade relationships.

Fair trade has two main objectives. On the one hand, the development of peoples. On the other hand, the fight against poverty.

The objectives are based on several pillars: Firstly, producers must have a minimum wage. Secondly, workers should not be children. Finally, the products shall be environmentally friendly.

Consumers pay more attention to the origin of the products they consume. They take into account, for example, how it has been obtained and they are willing to pay more... Continue reading "The Impact of Fair Trade and Ethics on Modern Society" »

Components of International Economic Accounts

Factor Income and Receipts

The Factor Income consists largely of payments and receipts of interest, dividends, and other income generated on foreign investments that were previously made.

Unilateral Transfers Defined

Unilateral Transfers, the final category of the Current Account, are one-way payments that do not require a counter-compensating monetary action. Examples include:

• Foreign aid and reparations
• Official and private grants
• Donations and gifts

The Capital Account Structure

The Capital Account includes all purchases and sales of assets such as stocks, bonds, bank accounts, real estate, and businesses. It measures the difference between a country’s sales of assets (e.g., US, Colombia) to foreigners... Continue reading "Global Economic Flows: Capital Accounts and Trade Drivers" »

Sensitivity Analysis

2 Members of the Restrictions:

Sensitivity analysis is important because it allows us to determine the opportunity cost of resources.

Obtain Efficient Solutions

By optimizing one objective and considering the other as a parametric constraint, we can obtain an efficient solution for each value between its ideal and anti-ideal points of the objectives included as parametric constraints in the model.

Difference in Pairwise Comparisons in AHP and PROMETHEE

There are two types of pairwise comparisons in AHP: between criteria in the same level with respect to a criterion in the next higher level and between alternatives with respect to a criterion in the next upper level of the hierarchy. PROMETHEE is only based on pairwise comparisons... Continue reading "Multi-Criteria Decision Analysis: Key Concepts and Techniques" »

Tax Deductions: An International Comparison

Income Tax Imposition

Income tax is imposed on gross income minus deductible expenditures. Generally, you cannot use expenses from one category of income to offset profits belonging to another. Expenses related to business activity may have specific deductions, while employment income often has standard deductions. Personal expenditures are generally not deductible. Mixed business and personal expenses are generally not deductible unless specific rules apply. For example, the UK does not allow deductions for mixed expenses. However, some countries like Australia, Sweden, and France allow deductions upon apportionment.

Specific Deductible Expenses

Commuting Expenses

Travel from and to work is generally... Continue reading "Tax Deductions and Capitalization: International Comparison" »

7) Describe the Ways in which database technologies could be used by an office stationery Supply company to achieve low-cost leadership.

Answer: Sales databases Could be used to make the supply chain more efficient and minimize warehousing And transportation costs. You can also use sales databases, as well as text Mining and sentiment analysis, to determine what supplies are in demand by Which customers and whether needs are different in different geographical Areas. Business intelligence databases could be used to predict future trends In office supply needs, to help anticipate demand, and to determine the most Efficient methods of transportation and delivery.

8) Describe the Ways in which database technologies could be used by a toy manufacturer

Public Relations

1. History: The International Public Relations Association (IPRA) was founded in the 40s when several Dutch and British PR practitioners discussed organizing PR professionals into a transnational society. Their goal was to raise standards of PR practice worldwide and improve the quality of PR practitioners. IPRA was established in London on 1 May 55. Nowadays, IPRA is an international organization with members from emerging and established countries. IPRA is governed by a secretariat in the UK. IPRA represents individual professionals, not agencies or companies. IPRA is recognized as an international non-governmental organization by the United Nations and has been granted consultative status by the Economic and Social Council... Continue reading "International Public Relations: Importance, Tips, and Strategies" »

The Second Industrial Revolution (1870-1914)

Rapid Industrialization

The Second Industrial Revolution was characterized by rapid industrialization due to the increased importance of the financial sector in industry and the rise of finance capitalism.

Innovations and Changes Leading to Increased Production

Innovations and changes led to an increase in production, including:

• New sources of finance: Joint-stock companies, banks, and stock exchanges provided new ways to raise capital for businesses.
• New business structures: Cartels, trusts, and holding companies emerged to reduce competition and increase efficiency.
• New technological advances: Improvements in the Bessemer converter, the invention of dynamite, stainless steel, and artificial fibers revolutionized