Notes, abstracts, papers, exams and problems of Economy

Accounting Case Studies: Transactions and Financial Records

Case 1: Service Distribution and Tax Detraction

The company, SRL Farmer, received services from Coria company, which will distribute the propaganda that SRL Farmer sent to print. For this distribution service, Coria issued invoice number 001-143 for the amount of 2100 + Sales Tax. This was paid by check (non-negotiable), with the respective detraction (12%) deposited in the provider's bank account at Banco de la Nación. ITF (Financial Transaction Tax) = 0.06%.

Calculations (for illustrative purposes, some original calculations were unclear and are presented here conceptually):

• Total invoice amount: 2100 + Sales Tax
• Detraction (12%): Calculated on the total invoice amount.
• ITF: 0.06% of

UNIT 5: THE PROJECT OR DETAILED DESIGN

Role of the Project

A project consists of a series of documents that define the construction work, allowing any professional to manage the project based on these documents. The functions of the project are:

• To verify and confirm the assumptions and solutions from previous stages.
• To provide all the technical, economic, and administrative information to the sponsor.
• To provide technical data, construction details, and conditions under which the project must be executed.
• To serve as a management document in cases where the initial draft is insufficient or nonexistent.

Types of Projects

• Utility/Public Administration Projects:

  These projects are promoted by the Administration and have a rigid structure defined by

Fiscal Policy: Taxes, Spending, and Economic Views

Tributes: Required mandatory payments to families and businesses to meet public expenditure.

Rates: A type of tax levied by the state for the provision of public services by public administration.

Taxes: A kind of tribute that does not obey the individual payment service offered by the public administration.

Public Deficit: Occurs when public expenditure generated by state action outweighs public revenue.

Fiscal Policy: The set of decisions taken by the government on tax and public spending levels to influence aggregate demand and, in turn, production, employment, and the general price level.

Expansionary Fiscal Policy: Its aim is to increase aggregate demand to increase production and employment... Continue reading "Fiscal Policy: Taxes, Public Spending, and Economic Schools" »

The economic disruption that national economies suffered after the war prevented a return to normalcy. On the contrary, it produced different phenomena that ultimately influenced the development of the crisis. These were motivated by the following factors:

• Industrial and agricultural overproduction.
• Monetary disorders.
• The U.S. hegemony after the war.
• Differential economic growth of new industries.

Overproduction

The imbalance between production and consumption caused overproduction, a crisis where the former is greater than the latter. Consequently, prices fall, factories close, and unemployment increases. This was a common phenomenon between 1914 and 1929. The cause lies in the increased industrial and agricultural production in countries such... Continue reading "Economic Consequences After World War I" »

Microeconomics and Macroeconomics

Microeconomics: Studies the markets and their individual components.

Macroeconomics: Studies the overall operation of the entire market economy of a country or region.

Key Macroeconomic Indicators

Macroeconomic figures are the indicators that measure what is produced in a country, the total amount of benefits accruing to firms, etc. The main ones are:

• National Accounting: Uses income and production methods.
• Inflation Measurement: The Consumer Price Index (CPI) is used as an inflation indicator. Formula: (CPI Year 2 / CPI Year 1) * 100
• Employment and Unemployment Indicators: Other indicators include confidence in economic agents, interest rates, or equity.

Gross Domestic Product (GDP) and Gross National Product (GNP)

Infrastructure Projects

These are numerous projects administered by the Ministry of Public Works and the Ministry of Transport and Communications. This list includes ports, airports, highways, and intercity and urban projects. Fortunately, resources are available from past surpluses from copper exports. The aforementioned ministries are activating an interesting infrastructure construction program expected to reduce the impact of unemployment. The execution of these works is described as anti-cyclical measures (against the cycle of crisis).

Concerning the Santiago transport system, despite the high cost for the country, the long-term operation of a potentially efficient, favorable, and useful scheme for the country is evident.

Development of Industrial

Social Indicators in Chile

One of the key social indicators is life expectancy. In Chile, it is among the highest in Latin America, with women at 80.8 years and men at 74.8 years. The literacy rate is 95.8%, and the mortality rate is 7.8%.

Economic Inequality in Chile

Chile's economy has a major flaw: the unequal distribution of income among the population. In 2005, Chile ranked 113th in income equality. The bottom 15 countries reveal a significant gap that has not yet been remedied. Some attribute this gap to the liberal system, while others attribute it to the endowment of natural factors, characteristic of an extractive economy.

The inequality between men and women, coupled with the low labor participation of women, hinders the reduction of... Continue reading "Chile's Economy: Inequality, Poverty, and Trade Agreements" »

Economic Agents and Their Roles

Item 2: Operators

Producers who supply goods or services in exchange for money receive them. Consumers are those who consume goods or services offered by the producers in exchange for money. In a simple economy, all economic transactions will always occur between households.

Companies

The company provides property, which will be units of domestic consumption, and in turn, inputs. Its main function is to produce. The objective is the maximization of profit, which is achieved by increasing the distance between production costs and revenues collected from sales.

Create the value added to existing productive factors, which increases the units of these factors by combining them in a controlled and coordinated manner to... Continue reading "Economic Agents and Their Roles in a Simple Economy" »

What is Economics?

Economics is the science of economic phenomena such as consumption, production, and distribution. The objective of economics is to explain and predict economic behavior.

Economic Theory

Economic theory is a set of general principles about the economy. It is divided into two main branches:

Microeconomics

Microeconomics analyzes the behavior of individual economic units such as families, businesses, workers, goods, prices, production companies, and consumption.

Microeconomic Problems:

• Consumption, production, and distribution in various market forms (perfect competition, imperfect competition, monopoly, oligopoly).
• Remuneration of production factors (rent, interest, wages, profit).

Macroeconomics

Macroeconomics studies the economy as... Continue reading "Understanding Economics: Microeconomics, Macroeconomics, and Economic Principles" »

Boost Your Skills

Making Progress with Confidence

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Managing Your Learning

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Academic Achievements

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Effective Learning Strategies

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Creating a Comfortable Learning Environment

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