Key Market Structures and Economic Efficiency
Productive and Allocative Efficiency
- Productive Efficiency: Achieved when goods are produced at the lowest possible cost per unit. This occurs where Average Total Cost (ATC) is minimized (Marginal Cost (MC) = ATC).
- Allocative Efficiency: Occurs when resources are allocated to produce the optimal mix of goods and services that consumers demand. This is achieved when the price of the last unit produced equals its marginal cost (MC = Average Revenue (AR)).
Market Structures
Perfect Competition
A market
Spain’s Domestic and Foreign Trade Dynamics
Foreign Affairs and Trade
Trade is the activity that provides surplus commodities and services to consumers. It can be performed within the boundaries of a country (domestic trade) or outside them (foreign trade).
Internal Trade
It is characterized by:
- Its location depends on the existence of a transport system between the producer and the consumer, and the existence of a broad consumer market with adequate purchasing power. Both factors contribute to urban neighborhoods and communities with good transport
Essential Glossary of Financial and Economic Terms
Acyclical
Describes an economic variable that is neither procyclical nor countercyclical. The correlation coefficient is close to 0.
Amplification of Business Cycles
It means that the size of the shock is smaller than the impact of the shock on total output. The actual response of the economy is bigger than the shock itself.
Amplification
It refers to the strong fluctuations in output generated by changes in interest rates, phenomena that the interest rate channel cannot explain. Adverse and positive
Urban Social Problems, Economic Systems, and Globalized Economy
Social Problems in Developed Urban Areas
Social problems in cities of developed countries include:
- Changes in Residential Areas: Speculation and deterioration of infrastructure lead to the marginalization of the poorest and excluded populations, such as the elderly and immigrants.
- New Social Movements: Ideological critique spreads throughout the system, exemplified by movements like squatting.
- The Fourth World: The poorest and most disadvantaged sectors of society living within developed nations.
- Racial
Business Essentials: Finance, Legalities, and Management
Product Planning
- Product Details: Detailed information about the product or service, including labor hours and investment costs.
- Product/Service Description: Characteristics such as color, texture, volume, weight, and materials.
- Number of Units Produced
- Production Phases: Organized steps in the creation process.
- Computation Time: Total time required (including pauses and downtime).
Employment and Contracts
- Employment Contract: Agreement between the worker and the business.
- Collective Bargaining Agreement:
Understanding the Tertiary Sector: Trade, Services, and Tourism
Tertiary Sector: Key Concepts and Definitions
Causes of Growth in the Tertiary Sector
- Increased Purchasing Power: Rising incomes have led to increased consumption.
- Welfare State Expansion: Progress in the welfare state has increased demand for services.
- Social and Demographic Changes: Urbanization and the incorporation of women into the labor market have increased the demand for services.
Defining the Tertiary Sector
The Tertiary sector comprises economic activities focused on providing services of all
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