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

Market Equilibrium and Its Variations

Market Equilibrium: Because the slopes of the demand and supply functions are contrary, there will be a point where they intersect. This point is called the equilibrium quantity. The market equilibrium price represents an agreement between buyers and sellers where the amount consumers want to purchase matches the amount that producers manage to sell.

Elasticity

Elasticity measures changes in quantities demanded or offered in relation to good prices, other good prices, other prices, or consumer income. It is a proportional ratio between the variation in the quantity and the proportional variation of the variable we want to compare it to.

• Demand Price Elasticity: A ratio that measures the relative changes in

Characteristics of a Multinational Company

A company is considered multinational when it operates in two or more countries to maximize its benefits under a global perspective, rather than focusing solely on each of its national units. According to Thompson & Strickland, a multinational company is characterized by:

• The possibility of locating activities of the value chain in the most convenient location from the point of view of the firm's competitive strategy.
• The possibility of transferring its skills and strategic capabilities from its national markets to foreign ones.
• The possibility of strengthening or expanding its resource base and abilities, gaining an advantage over competitors that act only at the national level.
• The possibility of

Classifying Business Funding Sources

Funding sources can be classified based on different criteria:

a) Ownership of Funds

This criterion considers the ownership of the funds used to finance business activities:

• Self-financing: Sources of funding that belong to the shareholders, including share capital, reserves, and undistributed company profits.
• External Financing: All debts incurred by the company to finance its activities, which must be returned with interest to their rightful owners (e.g., credit debts, obligations, suppliers, creditors).

b) Duration of Employment

This criterion distinguishes between two types of resources based on their permanence within the company:

• Permanent Resources: Funds with a degree of permanence, either not returned or

Individual Agricultural Entrepreneur

An individual agricultural entrepreneur is a natural or legal person who holds ownership that allows them to pursue agricultural economic activity and assumes the risks and responsibilities thereof.

The LMEA (Law of Modernization of Agricultural Holdings) defines the owner of the farm, i.e., the agricultural employer, as the "natural or legal person holding the farming property and rights to organize members of the farm business with specific criteria, assuming the risks and responsibilities arising from the management of the holding, be it civil, social, or fiscal."

Requirements of an Agricultural Entrepreneur

• The existence of a farm organization is required. The constitution of this organization should be

ITEM 13: People Asked:

1. What is the Bank of Spain?

The Bank of Spain is a financial intermediary that is unusual in that its funding is not aimed at companies or families, but rather at the public sector or other financial institutions. The Bank acts as a monitor of both financial institutions and non-bank entities, conducting economic and financial studies.

Functions in the State:

• Starting the issuance of coins, subject to ECB approval over the volume of issuance.
• Providing treasury services and acting as the financial agent of public debt.
• Advising the government and organizing reports and studies that are unprecedented.

Functions of the Eurosystem:

• Conducting foreign exchange operations consistent with the Treaty of the European Union.
• Holding

Types of Monetary Policy

Monetary policy can be categorized based on the instruments used and their general effects on the economy.

According to the Nature of the Instruments:

• Open Market Operations:

  This is the main tool for controlling the amount of money in circulation (M) and interest rates (i). The most important operations are the main refinancing operations, which are regular auctions of money available to commercial banks operating in the Eurozone. The minimum bid rate is set by the ECB itself, which becomes the official interest rate.

• Standing Facilities:

  As the name suggests, these are facilities available to commercial banks from the central bank in their own country. They are manipulated through overnight operations for granting credit

Company

Company: The economic unit responsible for combining productive resources (capital and labor resources) to produce goods and services that are then sold on the market.

Employer

Employer: An individual or organization that makes the necessary decisions to achieve certain objectives based on business interests in the given circumstances and environment.

Key Economic Terms

Benefits

Benefits: Defined as the difference between revenues and costs.

Income

Income: The amounts that the company earns from selling its goods or services during a specified period.

Costs

Costs: The expenses associated with the production of goods or services sold during the period.

Productivity

Productivity: The production per unit factor, generally referred to as output per... Continue reading "Understanding Key Economic Concepts in Business Operations" »

Key Accounting Concepts

8 Core Elements of Published Writing:

• Terms in case of death, company name, social order or business group, address for any legal purpose, initial contribution of partners, legal representative, identification of the members of the society, obtaining RUT.

Characteristics of Accounting Information

Four Key Characteristics:

• Meaningful: Must be relevant and understandable.
• Disclosure: Must properly reveal necessary information.
• True: Should present only factual information.
• Clear: Events should be shown specifically to avoid confusion.
• Accurate: Facts must be reflected precisely.

Role of Tax Accounting

The role of tax accounting is to track expenses and taxes incurred by the company.

Decision Making with Accounting Information

Used... Continue reading "Key Accounting Concepts: Assets, Liabilities, and Financial Statements" »

Analysis of Business Environment

Companies and organizations are open systems that are in continuous interaction with the environment. Therefore, we must consider external factors (the environment) that may affect our business. The company does not control the environmental factors. Those are considered strategic factors that can have a significant impact (positive or negative) on the results of the company.

There are two types of environment:

• The general environment (common to all firms operating in the same social, economic, political, and technological context - PESTEL analysis)
• The competitive or specific environment (different for each sector - Porter's Five Competitive Forces analysis).

1. Analysis of the General Environment (PESTEL)

Political... Continue reading "Business Environment Analysis: PESTEL and Porter's Five Forces" »

Active Policies: Encouraging Job Creation and Retention

Active labor market policies focus on promoting recruitment, retention, training, retraining, and job mobility to prevent unemployment and facilitate access to employment for various groups. Both employees and employers benefit from these policies, which emphasize a precautionary approach to address unemployment, particularly long-term unemployment.

Heterogeneity of Measures

These policies employ diverse approaches:

• Work Incentive Type: Measures targeting self-employment and paid employment.
• Target Groups: Youth, women, long-term unemployed (1 year or more), disabled individuals, and immigrants. Intensive programs with well-defined and relatively small target groups tend to be more efficient.