Marxist Economic Theory: Capital, Labor, and Value
Capital Accumulation and Its Consequences
The capitalist invests surplus in the means of production and wages, thus becoming a new capital. Therefore, it increases the existing capital: capital accumulation occurs. This leads to capital concentration and centralization, causing capitalism to fall into a vicious circle. For Marx, competition in production is due to the lowest price. The lowest price results from high work performance, and he resolves to use more powerful machines and more sophisticated
Read MoreUnderstanding Market Economy: Functions, Value, and Competition
Basic Functions of the Market Economy
In a society like ours, the Public Sector is assigned the following functions:
- Fiscal: The state is the only entity that can impose taxes and decide where to spend what is collected. Establishing and collecting taxes is a fundamental function of the state.
- Regulatory: Legislative behavioral rules in the form of laws, prohibitions, etc., are regulated. Examples include minimum wage, labor legislation, and pollution control.
- Redistribution: Compensating for the unequal
Business Finance: Sources, Costs, and Investment Strategies
Sources of Company Financing
Financing refers to liquid resources or means of payment available to a company to meet its monetary needs. It can be classified according to three criteria:
- Classification Based on Repayment Timeframe:
- Sources of financing in the short term (less than 1 year)
- Sources of financing in the long term (over 1 year)
- Classification Based on Source Origin:
- Internal financing (reserves)
- External financing (equity, loans)
- Classification Based on Ownership of Funds:
- Company’s own funds
International Monetary System Shifts: 19th Century to Interwar Period
Key Changes in the International Monetary System: 19th Century to Interwar Period
After the First World War, almost all European currencies were below par values, as inflationary financing and balance of payments deficits had caused currency depreciation, despite controls on the balance of payments. While all countries considered it desirable to restore the gold standard, only the dollar was able to do so quickly (1919), serving as a reference for the implementation of other currencies, as the pound
Read MoreUnderstanding Market Economy, Business, and Entrepreneurship
Long Questions:
The Market Economy System: Characteristics, Advantages, and Disadvantages
Features:
- Exchange
- Freedom of Free-Trade
- Free Enterprise
- Free Market
- Equality under the Law
- Property Accumulation of Capital (Savings Reinvestment)
- State Intervention Beyond Police and Justice
Benefits:
- Growth (Maximum Continuous), Production
- Low Prices
- Minimum Costs (No Waste)
- Null-Benefit in the Long Term
- Better Motivation and Innovation
- Fewer Taxes, Less Corruption
- Better Cohesion and Democracy
Disadvantages:
- Environmental
Understanding Double-Entry Accounting and Financial Accounts
Early Double-Entry Accounting
- Assets must be recorded on the debit side.
- Liabilities must be recorded on the credit side.
- Outflows are recorded on the debit side.
- Income is recorded on the credit side.
- Equity is recorded on the credit side.
- Everything that comes out of an account must be balanced.
- Columns must be balanced.
Accounts
Assets
Cash and Bank Accounts
Accounts used to record deposits in checking accounts at national banks or abroad, freely available funds, and others that serve as payment.
- Cash: Cash