Economics: A Comprehensive Overview

Economy

Definition: Economics is a social science that studies the processes of production, exchange, distribution, and consumption of goods and services.

Classes of Goods

Free Goods: These goods are freely available in nature and have no economic value. They are not owned by anyone in particular, but rather by everyone.

Economic Goods: These goods are the result of human effort and technology, and therefore have economic value.

Unemployment

Definition: Unemployment occurs when individuals in the active population are not employed but are actively seeking work.

The Company

Definition: A company is a production unit responsible for gathering, processing, and distributing goods and services necessary for human needs.

Production Factors

Definition: Production factors are elements that, when properly organized, allow a company to produce goods and services.

Market

Definition: A market consists of all exchanges of goods and services between buyers and sellers.

Economic Sectors

Primary Sector

This sector involves extractive activities, obtaining economic resources directly from nature.

Secondary Sector

This sector comprises manufacturing or industrial activities that transform raw materials into finished products usable by consumers or other companies.

Tertiary Sector

This sector provides services to the community.

Types of Entrepreneurs

Natural Person: An individual entrepreneur.

Social Entity: A social entrepreneur.

Labor Market

Definition: The labor market is where the demand for work from employees and job offers from companies meet.

Working-Age Population

Definition: The working-age population includes all persons 16 years or older who have not yet reached retirement age.

Active Population

Definition: The active population consists of employed individuals and those who want to work but cannot find employment.

Inactive Population

Definition: The inactive population includes individuals of working age who may have some occupation but are not actively seeking employment.

Individuals in Peculiar Situations

For example, those working as part of an NGO.

Labor Standards

Definition: Labor standards are the set of norms and rules governing the employment relationship.

The Employment Contract

Definition: An employment contract is an agreement where a worker commits to providing a service for the employer in exchange for a wage.

Contract Clauses

1. Professional level or job title of the worker and the workplace.
2. Type of workday (full-time or part-time).
3. Complementary hours.
4. Contract duration (indefinite) and start date.
5. Provision of services by the employee.
6. Total salary, payment period, and included elements. The actual amount received by the worker is the net salary or wages.
7. Length of annual leave.
8. Additional rules.
9. Employment office of the Autonomous Community where the contract is registered.