State Budget Structure: Revenue and Expenditure
Introduction: The Role of the State in the Capitalist System
In the capitalist system, states have dominated the economy, acting as major economic agents. They either directly participate in economic activities or indirectly encourage the private sector. State involvement has evolved significantly since the 20th century. Initially, there was a classical conception of the liberal state, where intervention was limited. This evolved into an interventionist state that assumes multiple economic and social
Read MoreUnderstanding Welfare State Models: Social, Continental, and Liberal
Characteristics of the Welfare State
- Economic Interventionism: Controls 40-50% of GDP.
- Labor Market Participation: Promotes full employment by regulating workplace safety and hygiene, and setting the minimum wage.
- Collective Bargaining: Acts as a chair in collective bargaining processes.
- Universal Social Security: Provides social security for the entire population.
- High Consumption Levels: Generalizes high levels of consumption, stimulating job creation.
- Minimum Standard of Living: Guarantees a minimum
Key Accounting Principles and Financial Reporting Standards
Conceptual Framework
Financial Reporting Objectives
To ensure a true and fair view of the economic/financial position and the results of companies in order to help decision-makers (information users).
Qualitative Characteristics
Relevant, Reliable, Comparable, Understandable, Timely, and Verifiable.
Constraints in Financial Reporting
Costs and Materiality, Reliable measurement, and Balance characteristics.
Accounting Principles
Going Concern
Unless there is evidence to the contrary, it shall be presumed
China’s Economic Rise: Deng’s Reforms and Their Impact
Theme II: The Development of the Global Economy
6. The Rise of China
I. Deng’s Reforms
- Household Responsibility System (HRS)
- Introduced in 1978
- A significant, though not complete, abandonment of the collectivization system under Mao
- Farming households were free to dispose of any surplus produce on the open market once production targets were met
- First major reform, setting the stage for other future reforms
- Allowed for an increased role for market forces
- Rural production rose, became self-sufficient in grain
Understanding Economic Systems: Production and Distribution
What to Produce?
The decision of what and how much to produce is an immediate consequence of the allocation of land, labor, and capital. Choosing to produce spacecraft, for example, will surely decrease the production of fridges, televisions, cars, or houses, as resources are scarce. This production decision involves an opportunity cost.
How to Produce?
The answer to this question relates to the choice of production technique. If several techniques exist, the consequence of this choice can be significant
Read MoreKey Concepts in Microeconomics: A Comprehensive Review
Key Concepts in Microeconomics
Indifference Curves and Consumer Choice
- Indifference curves must necessarily have a negative slope: Any point in space to its right includes a greater quantity of at least one of the goods.
- If you give the first 10 purchased units of good 2, the maximum amount of good 2 to which you have access is: (y/p2) + 10.
Market Structures
Perfect Competition
- In perfect competition, a company is in short-term equilibrium if the marginal value product equals the price factor, assuming