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

Marketing and Business

The Concept of Marketing

Marketing is the process of creating, communicating, and distributing value to satisfy consumer needs and establish lasting exchange relationships. It focuses on acquiring new customers while retaining existing ones, as they generate the majority of sales revenue. Marketing stimulates demand but does not create the need.

Marketing Guidelines

Marketing strategies vary depending on the market situation. Key approaches include:

• Production Orientation

  Focuses on lowering production costs to offer lower-priced products (e.g., Henry Ford's approach).

• Product Orientation

  Emphasizes producing the highest quality products, applicable when demand exceeds supply (e.g., early mobile phones).

• Sales Orientation

  Prioritizes

Understanding Key Financial Components

Active Non-Current Assets

Intangible Assets

• Research and Development
• Administrative concessions, industrial property, and transfer rights
• Computer software

Fixed Assets

• Land and natural resources (not specified)
• Construction (not specified)
• Technical installations
• Machinery
• Cranes
• Furniture
• Equipment for process information
• Other tangible assets

Investment Property

• Land and natural resources (specified)
• Construction (specified)

Long-Term Financial Investments

Current Assets

Stocks

• Commercial
• Raw materials
• Current Products
• Finished Products

Receivables

• Customers
• Debtors
• Public Finance debtors
• Organizations-Social Security debtors

Available

• Banks and credit institutions
• Safety

Financial Returns

Financial (ROI, ROA): BAII / Total Assets:... Continue reading "Understanding Assets, Liabilities, and Financial Ratios" »

Basic Economic Definitions

Economics: The study of how societies use scarce resources to produce valuable goods and services and distribute them.

Efficiency: Effective use of society's resources in satisfying people's wants and needs.

Microeconomics: Concerned with the behavior of individual entities such as markets, firms, and households.

Macroeconomics: Concerned with the overall performance of the economy.

Inputs: Commodities or services that are used to produce goods and services.

Outputs: The various goods and services that result from the production process.

Factors of Production and Markets

Factors of Production: Land, labor, and capital.

Production Possibility Frontier: Shows the quantity of goods that can be efficiently produced by an economy.... Continue reading "Key Economic Concepts and Principles" »

Wage Unit-VI

Wage means the compensation, whatever its denomination or method of calculation, that can be assessed in cash. It is payable by an employer to an employee for services or work already performed or to be performed, in accordance with the contract of employment. It is stipulated freely but may not be less than the minimum set according to the requirements of the law. For work of equal value, of the same nature or not, duration, and effectiveness, equal compensation shall correspond.

• Overtime work will be paid with 50% at least on the agreed salary for the ordinary workday.
• Night work will be paid with 30% of the regular wage set for work by day.
• Overtime at night will be paid a premium of 100% of the regular hourly wage.
• Hours worked

The Public Sector

The public sector integrates the economic activities of a nation within the governmental sphere. Classical economists advocated for economic liberalism and, therefore, were not in favor of state intervention in the economy. Socialist economists, followers of Karl Marx, think that the state has to have a central role in economic life. Keynesian economists, followers of the theories of John Maynard Keynes, are in favor of the state becoming an economic agent.

Principal Functions of the Public Sector

1. Normative Function: Regulating the activity of economic agents through the broadcast of legal norms, laws, decrees, etc.
2. Allocative Function: The state performs this function when it produces or provides goods and services, such as roads,

Factors of Production

673 Why is the demand for factors considered a joint application? Because several factors must be used jointly and in coordination to develop products.

Labor Market

677 Why is labor demand conditioned by labor productivity? A company can only hire an additional worker if the value of the marginal product of labor exceeds its wage; that is, if the value of increased production exceeds its cost.

679 What is the activity rate? The proportion of persons of working age who are either employed or seeking employment.

680 What are the main labor market imperfections?

• a) The bargaining power of unions and employers' associations
• b) The heterogeneity of labor
• c) Lack of market transparency
• d) Labor is not a perfectly mobile factor

Natural

1918, order First World War. Crazy 20 years: phase dexpansio (1919.1929), phase of crisis (1921.1924), phase of valley, valley phase (1929-1939), the properiti (1924-1029) black ans 30: valley phase (1929-1939) / Dawes Plan (1024) New York stock market crash (24-10-1929) outbreak of World War II (1-9-1939). 1depresio expansion crisis indicators as: : fall in production, lowering prices, increasing Datura, internacionalsde slowdown in trade and capital goods, sectoral shocks: only affects a sector producio, textiles, chemicals ... economic crisis affects the whole of a pacer leconomia expansion phase of a valley. overproduction crisis: when there is very Exes doferta but not eaten enough, this makes lower prices. 2-return to normalcy, leconomia

Macroeconomics: Key Factors and Impacts

Factors

Internal market forces: Population growth, investment spending, technological innovation.

External shocks: Wars, climate conditions.

Macroeconomic policies: Tax spending.

Resulting Objective Variables

• Economic growth
• Inflation
• Employment and unemployment
• Public deficit
• External deficit
• Exchange rate

Types of Unemployment

• Cyclical Unemployment: Occurs when there are idle workers and insufficient resources to employ them all.

• Seasonal Unemployment: Caused by changes in labor demand at different times of the year.

• Frictional Unemployment: Related to the normal functioning of the labor market.

• Structural Unemployment: Due to imbalances between the qualifications or location of the workforce and the qualifications

Perfect Competition

Perfect competition describes a market structure where numerous small firms compete against each other. In a perfectly competitive market, no single firm has any significant market power. As a result, the industry as a whole produces the socially optimal level of output, because no firm can influence market prices. The price is determined by the free interplay of supply and demand.

Monopoly

A monopoly is a market structure composed of a single company or group that dominates the entire supply of a particular good or service.

Oligopoly

An oligopoly is characterized by the existence of a limited number of suppliers who exert some control over the price and are mutually interdependent.

Monopolistic Competition

Monopolistic competition... Continue reading "Market Structures: Perfect Competition to Monopoly" »

Industrial Transformation and Early Innovations

The chemical industry underwent significant transformation to meet the demands of textile dyeing and the production of vast amounts of bleach. A notable development was the invention of the Roebuck lead chamber process by 1746, crucial for sulfuric acid production. The momentum for metal manufacturing, particularly machinery, originated from the needs of the textile industry. However, gradually spreading mechanization consolidated this new industry, dedicated to manufacturing machines. Another rapidly growing sector during this period was construction.

Economic Liberalism and Classical Thought

Economic liberalism emerged in the eighteenth century, championed by the Classical School of economists.... Continue reading "Foundations of Modern Industry and Economic Principles" »