Notes, abstracts, papers, exams and problems of Economy

What is Economics?

Economics is the study of choices that people make to satisfy their needs and wants.

Factors of Production

• Land
• Labor
• Capital
• Entrepreneurship

Goal of Entrepreneurship

The goal of entrepreneurship is to be successful and maximize profit.

Why is Scarcity a Basic Problem of Economics?

Scarcity is a basic problem because wants are unlimited, even when resources are limited. Therefore, it's crucial to use resources effectively.

What Issues Must Producers Address to Distribute/Allocate Resources?

1. What to produce?
2. How to produce?
3. For whom to produce?

Why Do Producers Study Productivity?

Producers study productivity to determine if resources are being used wisely.

Why is Sacrifice an Important Element of Economic Choice?

Sacrifice forces people to... Continue reading "Understanding Economics: Principles and Applications" »

People were eager to buy and practically everything was sold. But a few years ago there has been an abrupt change in consumer behavior, which is beginning to wonder if they really need so many things. These new consumer trends have led to responsible consumption.

The buyer must convince himself that the purchase is worthwhile and appreciate what he really needs. They have become a saturated consumer, a customer who is not looking for anything else; because you have enough, because you don't need it, or because you don't want it. However, this does not mean that they do not continue buying, but that they buy in another way.

Materialism has given way to a type of customer who seeks sustainable consumption, based on the optimization of resources

Executive Summary

This policy paper analyzes Venezuela's recent financial crisis and provides recommendations to the Venezuelan government regarding exchange rate policy.

Venezuela's Economic Crisis

Venezuela has experienced a rapid economic downturn since the implementation of socialist economic policies in 1999. The country's heavy dependence on oil exports to manage the economy has stifled private investment and created an over-reliance on imports for basic goods. The drop in global oil prices since 2013 has plunged Venezuela into hyperinflation, which exceeded 1.3 million percent in 2018. The nation's political turmoil has been exacerbated by a lack of economic development, corruption, and the devaluation of its currency, the Venezuelan Bolivar.... Continue reading "Venezuela's Financial Crisis: Exchange Rate Solutions" »

Chapter 1: Introduction to Economics

Economics is the study of how we choose to use resources to produce goods and services. There are four factors of production:

• Land: Natural resources, such as grass
• Labor: Human effort, such as work
• Capital: Tools and machinery used in production
• Entrepreneurship: The ability to combine the other factors of production to create goods and services

When making economic decisions, we consider marginal benefit (MB) and marginal cost (MC). If:

• MB > MC: It is beneficial to proceed
• MB = MC: This is the break-even point
• MB < MC: It is not beneficial to proceed

Economic theory simplifies economic reality, while economic policy involves remedial actions taken to solve economic problems. Economic goals include economic... Continue reading "Fundamentals of Economic Theory and Practice" »

Key Changes in Vocabulary

• Income (paragraph 1) Earnings
• Consultants (paragraph 4) Guidance Counselors
• Persist (paragraph 6) Remained
• Considerable (paragraph 7) Significant
• Enhance (paragraph 8) Complement Each Other
• Well Informed (paragraph 11) Fully Aware
• Present (paragraph 13) Current
• Results (paragraph 15) Outcomes
• Distant (paragraph 17) Remote
• Recognition (paragraph 18) Awareness

Key Phrases

• Deliberate B
• The Advantages D
• People Have A
• The Effort B
• Expanding Cities D
• Some Doubt A
• Beneath B
• Residents D
• Attempts C
• Greater Consideration C

Frequently Asked Questions

1. How will jobs change due to the fourth industrial revolution?

The fourth industrial revolution is expected to lead to the complete loss of some jobs, particularly those involving repetitive, production-... Continue reading "Impact of the Fourth Industrial Revolution on Jobs and Careers" »

Introduction:

Provides background information about the subject and introduces the problem

Thesis Statement:

States the problem and solution/s

Body:

Convince the reader that the problem exists and is serious, then you propose solutions

Conclusion:

Restate the problem and the proposed solution/s. Placing the issue in a larger context, presenting an alternative point of view, looking to the future

Verbs cause:

was caused by, will result from, is affected by.

Verbs effect:

caused, has resulted in, has made

Conjunctions:

since, because

Intro adverbs:

therefore, consequently, for this reason

Prepositional:

as a result, because of

International Trade and Export Marketing

Key Concepts in Exporting

31) The only marketing mix element applicable solely in export selling is Place.

32) Which of the following is not true about personal selling? E) To have a face-to-face meeting is not a requirement.

33) Export marketing requires all of the following except: E) Reaching retail customers.

34) The possible arrangements of responsibilities for handling exports include all except: E) Through an export department of an embassy.

35) Research has shown that exporting firms tend to: C) Receive unsolicited export orders.

Global Trade Dynamics

36) According to recent data on percent market share, which country is a dominant player in international trade? B) China

37) Governments commonly use activities... Continue reading "International Trade and Export Marketing: A Comprehensive Guide" »

The Urgent Need for Climate Action

The effects of climate change are a pressing concern for society. While much has been done to mitigate its impact, there is still much more to be done. In recent years, there has been a growing awareness of the need to take action to combat climate change. However, more action needs to be taken, and it must be taken quickly.

It is suggested that more measures be implemented to reduce carbon emissions and to increase the use of renewable energy sources. The government should also encourage people to make lifestyle changes to reduce their carbon footprint. It is hoped that, in the future, the effects of climate change can be minimized.

If more action were taken, the future would be brighter. However, it is not... Continue reading "The Urgent Need for Climate Action and the Impact of Technology on Jobs" »

Business Financing (Microcredits) Causes and Effects

Introduction

The goal of the present study is to analyze microcredits, their origin and their development. This report shows two dimensions. Firstly, the origin of microcredits and secondly, the effects in developed countries and in developing countries.

Origin of Microcredits

Microcredits are a kind of loan addressed to a part of the society who did not have enough means to pay back a loan with a higher amount, a fixed employment or a verifiable credit history. In addition, it has also served to finance entrepreneurs. The roots of this type of loan were originated in the 60’s by Muhamad Yunnus. The main cause of this creation was the financing of this type of people to acquire their houses,... Continue reading "Microcredits and China's Economic Expansion" »

Comparative Advantage and Trade

Absolute vs. Comparative Advantage

Absolute advantage occurs when a country can produce more of a good with the same resources or produce the same good with fewer resources (higher efficiency). Comparative advantage exists when a country can produce a good at a lower opportunity cost than another country.

Illustrative Example

1. Before Specialization: Assume two countries, A and B, each allocating half their resources to produce wheat (W) and rice (R). Country A produces 50W and 40R, while Country B produces 100W and 50R.
2. After Specialization: Based on opportunity costs, Country A specializes in rice (80R), while Country B specializes in wheat (200W).
3. Trade: At a market price of 1W = 0.6R, Country B can export 100W and