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

Understanding Consumer Behavior: Focusing on Needs

Understanding consumer needs is the crucial first step in implementing the marketing concept, as it is difficult to meet customer needs effectively otherwise.

Defining Consumer Behavior

Consumer behavior refers to the activities carried out by a person or organization when they perceive a need to purchase and use a product or service. A distinction is often made between final consumer behavior and the behavior of organizations.

Studying End-User Behavior

The study of end-user behavior includes these aspects:

• The purchase behavior of individuals or groups for their own consumption or that of third parties (e.g., family members). It includes the activities undertaken to obtain a good or service.
• The

European System of Central Banks (ESCB) and the Bank of Spain

ESCB Functions

• Define and implement the monetary policy of the euro area.
• Manage foreign exchange reserves and conduct foreign exchange transactions.
• Foster the proper functioning of payment systems.
• Authorize the issuance of legal tender banknotes.

Bank of Spain

The Bank of Spain is the national central bank of Spain and, within the framework of the ESCB, the monetary authority that regulates the activity of the country. National central banks have two types of functions: specific functions and functions as a member of the ESCB.

Specific Functions of the Bank of Spain

• Hold and manage foreign exchange reserves and precious metals not transferred to the ECB.
• Monitor the operations of credit

Fiscal Policy and Taxation

In performing functions that require goods and services, there is a cost to be funded through the nation's budget, and this is managed by the Executive.

Financing of the Budget

Ability to Pay

If the taxpayer has no income, taxes must not be charged. The tax rests on the amount of your income.

Benefit Principle

There is a relationship between taxes and benefits of the State (E°).

Classifications of Taxes

1. Direct Taxes

Direct tax revenues or profits from a natural or legal person.

2. Indirect Taxes

Taxes levied on facts such as ringers, stamps, customs duties, and VAT.

Tax Progressivity

• Progressive Tax: As the amount of income rises, the tax rises.
• Proportional Tax: The tax is proportional depending on the tax base.
• Regressive

Financial Instruments

Loan

• In a loan, the bank makes available to the customer a fixed amount, and the customer becomes liable to repay that amount plus commission and interest by the agreed deadline.
• A loan is usually a medium to long-term operation, and amortization is typically done through regular payments (monthly, quarterly, or semi-annually). Thus, the client has the opportunity to organize their finances better when planning payments.
• Generally, personal loans are granted to individuals for private use. Therefore, they usually require personal guarantees or collateral (such as pledges or mortgages).
• The granted loan amount is usually deposited into the customer's account, and interest must be paid from day one, calculated on the full amount

Economic Analysis: Understanding Company Profitability

Economic analysis focuses on studying a company's profitability. This section provides information about different types of business results and the various ways profitability is achieved. It indicates whether investments are sound, management is efficient, and provides a snapshot of a company's assets. It reveals whether investments are profitable, identifies problems, and highlights areas of concern. It is based on the study of the profit and loss account.

The Profit and Loss Account

The profit and loss (P&L) account is an accounting document that reflects the results obtained by a company during a given period. While the balance sheet represents the company's assets, the P&L account... Continue reading "Understanding Company Profitability: A Deep Dive" »

Economic Assets

The economy encompasses activities like shopping and using transportation. Economic assets are items that people produce. These include material objects obtained from nature or manufactured by us.

Economic Activities

Economic activities are those that produce economic goods. Several factors contribute to these activities:

• Natural resources: These are derived from nature.
• Human resources: These are the people who contribute their work and experience.
• Capital: This is a factor produced by machinery, buildings, etc.

Types of Economic Systems

Societies organize themselves into different economic systems. Some systems involve the state owning most of the production factors and deciding how the economy should function. In other models, governments... Continue reading "Understanding the Economy: Assets, Activities, and Systems" »

Core Marketing Concepts and Strategies

Overall Competency:

Analyze the market and determine applications according to organizational needs to fully meet consumer expectations. This is based on expertise acquired in the classroom combined with field exercises scheduled for this purpose, demonstrating responsibility and professional ethics.

Unit 1: Nature and Concepts of Marketing

Competition:

Identify the origins, applications, and importance of marketing to recognize organizational challenges by analyzing key concepts, thereby promoting corporate responsibility in executing this function.

Content:

• Origin of marketing.
• Marketing concept.
• Marketing basics.
• The needs as a central concept of marketing.
• Philosophies of marketing.
• Application of

Building Franchise Confidence

Aspects to offer confidence over a particular franchise include acting in a specific area with dedicated centers, maintaining agreements with financial institutions to facilitate franchisee financing, and ensuring high franchisee satisfaction within the network.

Pre-Contract of Franchise Explained

As its name indicates, a pre-contract of franchise precedes the preliminary contract. It is a written document where the franchisor agrees to reserve, for a specific enterprise, the right to access the franchise in a particular area for a limited time, usually around two months.

Franchise Statements: True or False

• Both franchisor and franchisee are independent: True
• There is no specific Spanish law regulating franchises: True

Funding

Regulation of Circulation Through the Central Bank

The Central Bank uses monetary policy as an instrument to achieve full employment and stability in the currency's value. It regulates operating cash through discounting and Open Market Operations.

Discounting

Discounting is the acquisition of a credit document at its current value or face value, discounted at an interest rate for the period of maturity. Rediscount is a practice of central banks issuing currency and is the discount of a document granted by commercial banks. This operation is intended to expand the money supply in line with the growth of the economy. Central banks charge a discount rate for this transaction, which can increase or decrease depending on the purpose of reducing or... Continue reading "Central Bank Monetary Policy: Regulation and Imbalances" »

Determination of Tax Liability in the Canary Islands

The determination of tax liability involves calculating the tax base for each taxable transaction, applying the relevant tax rate, determining the resulting tax liability, considering temporary entry criteria, and, for internal operations, applying tax rates and deductible temporary entry criteria deductions.

Determination of the Tax Base

The tax base consists of the sum of the consideration for the main operation and its ancillary benefits. However, for goods imported or manufactured on a different Canary Island, costs related to ports, airports, insurance, and freight required for transfer from the island to the delivery place are excluded from the taxable base.

Determination of the Tax Rate

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