Essential Economics Definitions
Macro Variables
Macro Variables are the key measures for assessing the overall health of a country’s economy. They represent economic activity and the sums of economic variables.
- GDP
- Labour Market
- Inflation Rate
- Interest Rate
- Government Expenditure
- Exchange Rates
- Balance of Payments
Final Good
A final good is an item bought by its final user during a period of time.
Intermediate Good
An intermediate good is an item produced by one firm, bought by another firm, and used as a component of a final good or service.
Read MoreKeynesian Economics: Core Tenets, Policies, and Critiques
Keynesian Economics: An Introduction
Keynesianism emerged as a liberal reaction to the inability of neoclassical orthodoxy and laissez-faire capitalism to automatically solve the serious economic imbalances that were accumulating in industrial countries after World War I.
Historical Context: The Post-1929 Era
The economic instability following the 1929 crash spurred a search for solutions, leading to three primary reactions:
- Marxist: Aimed to attack capitalism from the outside.
- Neoclassical: Sought to
Economic Rationality: Households, Firms, and Public Sector Roles
Economic Rationality: Core Principles
This concept describes the behavior of households and firms, considering they use their scarce resources to maximize their own utility or benefits.
Households or Families
The domestic economy is composed of individuals, singly or grouped into families, whose primary function is to satisfy their needs through the consumption of goods and services. With their income (household income), families must decide how to distribute it: how much to spend and on what types
Read MoreCorporate External Growth and Alliance Strategies
External Development Strategies
Benefits:
- Time savings (e.g., compared to internal growth)
- Overcoming entry barriers
- Risk reduction
- Greater financing alternatives
Disadvantages:
- High purchase price
- Difficulty integrating two organizations
- Antitrust regulations (e.g., U.S. antitrust laws, EU competition laws)
- Acquisition of some unnecessary assets
Company Integration Methods
Pure Merger
Two or more companies agree to combine, creating a new enterprise by contributing all their assets and dissolving the original
Read MoreSenior Support: Enhancing Quality of Life for the Elderly
Essential Support Services for Seniors
Numerous resources are available with the objective of providing elderly individuals with mechanisms to improve their quality of life. The most commonly utilized services include:
Financial Aid and Lifestyle Enhancements
Many services offer various discounts or free access based on age and pension status. These often apply to:
- Shows and cultural events
- Sports activities
- Transportation
- Municipal taxes
- Water services
- Other relevant services for the elderly
Critical Health
Read MoreLabor Market Dynamics: Unemployment, Poverty, and Key Indicators
Understanding Unemployment and Its Facets
Unemployment is considered a significant waste of resources and is associated with several resource-related problems.
Key Issues in Employment
- Informality: Jobs that are not legally recognized.
-
Underemployment: This refers to a situation where a person, in a given period, works fewer hours than they are willing or available to.
- Visible Underemployment: Individuals work fewer hours because no more work is available.
- Invisible Underemployment: Individuals whose