Market Structures and Competition: Understanding Different Types
Market and Competition
The market is a mechanism that gathers all the buying and selling activities of a specific product. It is the axis on which market economies and mixed economies are based. It facilitates the exchange of goods and services through the free operation of supply and demand.
Perfect Competition
A market is considered to have perfect competition when all goods and services are voluntarily exchanged for cash at a price set by the market.
Imperfect Competition
Imperfect competition is
Read MoreBusiness Structures: Limited Partnerships, LLCs, and Corporations
Limited Partnership
A limited partnership features two types of partners: general partners and limited partners.
- General Partners: In charge of management, their liability is joint and unlimited. They must register in the autonomous regime.
- Limited Partners: Do not manage; their liability is limited to their contribution. They should be recorded in the general scheme of social security.
Two Types of Limited Partnership
- Simple: Two or more general partners contributing money and labor. They provide capital.
Key Concepts in Monetary Policy and Macroeconomics
Federal Open Market Committee
The Federal Open Market Committee (FOMC) is a committee within the Federal Reserve System (the Fed). Under United States law, it is charged with overseeing the nation’s open market operations.
Open Market Operations
Open Market Operations refer to the buying and selling of government securities in the open market in order to expand or contract the amount of money in the banking system.
Money Creation by Commercial Banks
Money creation by commercial banks: In a fractional
Read MoreEconomic Liberalism, Welfare State, and Investment Dynamics
Economic Liberalism Before World War I
Before the First World War, economic liberalism was the dominant economic ideology. It advocated for minimal state intervention, encapsulated by the motto “laissez-faire, laissez-passer: the world works alone.” However, the state still played a role due to three key factors:
- The unequal initial distribution of property.
- The existence of collective basic needs.
- The existence of natural monopolies.
This era was characterized by the concept of a “guardian state,” whose
Read MoreRetail, Wholesale, and Business Partnerships
Services of Retailers to Consumers
- Retailers buy and stock goods suitable for consumers.
- Retail shops are situated in convenient localities, usually very near the consumers’ residence.
- They sell to consumers in quantities that suit the pockets of different individuals.
- Retailers make available to their customers goods of the sizes, styles, types, qualities, and prices they prefer.
- Many retailers offer free home delivery of goods purchased.
- Many types of retailers sell goods on credit to their customers
Understanding Macroeconomics: Key Concepts and Indicators
Understanding Macroeconomics
Macroeconomics focuses on the study of the economic situation nationally and internationally. It uses a number of variables to determine the state of the economy; these quantities are the macroeconomic variables. In Spain, measuring the value of these quantities is performed by the National Institute of Statistics and the National Accounts Laboratory.
The Circular Flow of Income
A constant exchange of goods and services, along with their payments, is created between companies
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