Notes, abstracts, papers, exams and problems of Economy

Chapter 3: Municipal Sports Infrastructure Plan

This chapter outlines one of the municipality's major plans concerning sports development and infrastructure construction.

The Local Sports Infrastructure Plan

The Local Sports Infrastructure Plan (PALE) compiles the municipal census of existing sports facilities and spaces, along with the desired future state. It also includes privately owned sports facilities and those belonging to universities. The PALE is established in accordance with the guidelines of the Regional Master Plan for Sports Facilities and the General Urban Development Plan of each municipality.

Purpose

The PALE provides a physical support system for developing municipal sports. Its purpose is the effective management of sports infrastructure... Continue reading "Municipal Sports Infrastructure Plan: Development & Optimization" »

International Trade: Free Trade vs. Protectionism

Free Trade

Free trade is the doctrine that defends commercial transactions between two or more countries conducted without impediments. To boost international trade, governments use these tools to promote exports:

• Official bodies: They offer advice to exporters. In Spain, this is done by the Institute of Foreign Trade and Chambers of Commerce.
• Financial assistance: This is provided in the form of export loans.
• Grants: These support businesses.

Protectionism

Protectionism is an economic policy that supports the establishment of barriers to free trade among countries to safeguard national production. Protectionist measures aim to protect national industry and agriculture, which can be adversely affected... Continue reading "Understanding Free Trade, Protectionism, and Balance of Payments" »

Chapter 3: Project Preparation and Evaluation

Pre-Investment

This stage determines the amount to be invested, and the project will be evaluated by measuring its profitability.

• Project Profitability: Measures the profitability of the business, regardless of who undertakes it.
• Investor Profitability: Measures the return on equity for the investor if they carry out the project.

Project Classification

A) According to the Objective of the Study:

• Project profitability
• Investment
• Capacity to pay for the project

B) According to the Type of Investment:

• Creation of a new business
• Modernization project:
  • Internalization
  • Externalization
  • Replacement
  • Expansion
  • Abandonment

Social Assessment of Projects

Compares the benefits and costs that a particular investment may have on... Continue reading "Project Preparation and Evaluation: Key Stages" »

Wages: Wages are the remuneration for work performed. The demand for labor influences wage levels. The mechanism of job creation is driven by companies. The quantity of labor demanded depends on factors such as:

• The level of wages and the price of goods and services.
• The productivity of the worker relative to the wage level.
• The characteristics of the population.

Employment Policy

Employment policy encompasses a set of plans aimed at reducing unemployment within an economy. Before implementing such policies, it's crucial to understand the characteristics of the population.

Population Characteristics

Population characteristics can be categorized based on their degree of participation in the production process:

• Working-age population: Individuals aged

**Funding Sources**

Financial sources are categorized as follows:

According to Ownership of Resources

• **Own Financing:** Capital contributed by partners or owners, and reserves.
• **External Financing:** Resources that generate a debt or obligation.

According to the Length of Time

• **Long-Term:** Members' contributions, loans, and borrowings.
• **Short-Term:** Bank loans and other short-term loans.

According to the Origin of Funds

• **Internal Financing (Self-Financing):** Generated within the company through savings.
• **External Financing:** Funds sourced from outside the company.

**Shareholder Rights**

• Participate in the sharing of benefits in proportion to the number of shares held.
• Subscribe to shares in capital expansions on a preferential basis.
• Be informed

International Trade

No country can provide everything its inhabitants want or need. To address these needs, countries engage in international trade.

Imports and Exports

Imports: A country buys goods and services that it either lacks or can obtain more cheaply from elsewhere.

Exports: To pay for imports, a country sells goods and services it has a surplus of or can produce more cheaply than other countries.

Trade Surplus and Deficit

Trade Surplus: A country earns more money from exports than it spends on imports.

Trade Deficit: A country spends more on imports than it earns from exports.

Interdependence

Interdependent Countries: Nations that engage in trade with each other.

LEDCs and MEDCs

LEDCs: Typically export cheap foodstuffs (e.g., tea, coffee) and... Continue reading "International Trade and Aid: A Global Perspective" »

State Intervention and the Financial System in the 19th Century

The Role of the State

There are two primary perspectives on the role of the state in the economy:

• The State Does Not Intervene: This approach was predominantly observed in Britain and, to a lesser extent, the United States. It was rooted in the classical schools of thought, whose proponents advocated for liberalism. They believed that state intervention should be confined to activities that were not attractive to the private sector but were beneficial to society, adhering to the doctrine of "Principles of Liberalism."
• The State Intervenes: State intervention can be motivated by a country's economic backwardness, the late unification of certain nations in the 19th century (such as Italy

• 1. Upon the expiration of discounted trade bills, the bank announced that all had been processed except one with a face value of €1,200. The bank charged this amount to the company's current account, along with €60 for return postage.

• 2. Goods are purchased on credit for €10,200. The invoice includes a discount of €200. These goods are contained in returnable containers valued at €400.

Corporate Tax and IAE: Key Aspects for Businesses in Spain

IAE: Tax on Economic Activities

The Impuesto sobre Actividades Económicas (IAE), or Tax on Economic Activities, is a local tax. The taxable event is constituted by the course of business, professional, or artistic activities. Business activities refer to livestock, mining, industrial, commercial, and service activities.

Taxpayers: The taxpayer is the individual or legal entity that carries out any of the activities included in the taxable event. Since 2003, taxpayers with a turnover below 1,000,000 per year are exempt.

Tax Rate: The tax rate is obtained from the application of the IAE rates. These rates group activities into sections, divisions, and groups, and the groups are classified... Continue reading "Understanding Corporate Tax and IAE in Spain" »

Current Economic Trends

Today, economics presents certain trends:

• More Realistic: It's based not on abstract positions, but on the behavior of different social groups.
• More Humane: It analyzes the free activity of individuals and social groups that influence the economic system.
• More Social: The community aims at full employment, welfare economics, and social justice.
• More Normative: It not only serves as an instrument to interpret reality but also as a guide to act on it.

The Origin of Economic Laws

Economic laws arise from:

• Hypotheses: Data sets that provide a simplified picture of reality.
• Statistics: The overall result of a myriad of economic facts.
• Trends: Explain casual relationships between economic variables over time.

Objectives

To take into account... Continue reading "Economic Trends, Principles, and Factors" »