Essential Economic Principles and Historical Theories

Economic Structure and Sectors

Structural Formula: This refers to how the working population is distributed across each of the economic sectors.

Economic Structure: This is the workforce associated with the production, distribution, and circulation of goods.

Production Sectors: These are the components that compose the national structural formula, which are the primary, secondary, and tertiary sectors.

Factors and Forces of Production

Production Factors: These are the elements or inputs used to produce a commodity or service, such as land, labor, and capital.

Productive Forces: These consist of all the means of production and the individuals who use them to produce material goods.

Production Management: This is the study of management techniques employed to achieve the greatest difference between the value added and the costs incorporated during the processing of resources into final products.

Macroeconomic Indicators

Gross Domestic Product (GDP): This is a measure of the value of goods and services produced in the territory of a country; it is the sum of the monetary values of goods and services produced in a particular period, such as a quarter or a year.

Inflation: This is the continued and widespread growth of prices for goods and services in an economy over time.

Labor Market and Employment

Economically Active Population: These are the persons who are capable of working and do so.

Employment: This is the intellectual or physical performance that a natural or legal person provides in a position of subordination in exchange for economic rewards.

Unemployment: This refers to the working-age population that is available but does not participate in any economic activity.

Economic Policy and Ideologies

Fiscal Policy: This is the use of taxes and government spending to control economic activity within a country.

Monetary Policy: This is an economic policy that uses money as a control variable to ensure and maintain economic stability.

Mercantilism: This is a set of political or economic ideas developed in Europe during the sixteenth, seventeenth, and the first half of the eighteenth century.

Liberalism: This is a philosophical, economic, and political movement that promotes civil liberties and sets a maximum limit on the coercive power of governments over people.

Land Rent and Historical Legislation

Absolute Rent: This is the payment that any company must make to the state to have access to a site.

Differential Rent: This is the payment to the state that must be made based on the natural conditions possessed by a resource.

Mines Act of 1909: This act intended to widely promote the direct producer who brought capital and hired labor, rather than the absentee owner of natural resources.

Prominent Economic Thinkers

Alberto Adriani: He proposed the modernization of the country's agricultural economy instead of oil development.

Uslar Pietri: He proposed that oil income should be directed to a state investment fund and, through credit, transfer and distribute the proceeds to promote private economic life.