Financial Assets, Markets, and Systems in Spain
Characteristics of Financial Assets
Liquidity: Liquidity is measured by the ease and certainty of realizing assets without losses. Money is the most liquid asset. The degree of liquidity depends on:
- a) How readily convertible into cash the asset is.
- b) The certainty of its conversion into cash without loss.
Risk: Risk depends on the probability that the issuer complies with amortization provisions. It depends on the issuer’s creditworthiness and any guarantees backing the asset.
Performance: The ability
Read MoreTourism & Macroeconomics: Employment, Demand & Key Factors
Tourism Demand
Tourism demand is the amount of tourist goods and services consumers are willing to buy at a particular time and place, at a certain price.
- Influencing demand: Income, prices, prices of other goods, tastes and fashion, government, advertising, etc.
- Influencing tourism demand: Seasonality (weather, time of year), hotel type and customer, time lag between demand and consumption, uncertainties, transportation, large upfront payments, and time itself.
- A trip is an example of tourist demand,
Money, Banking, and Economic Policy: A Comprehensive Analysis
Money and Banking
Money serves three primary functions: a medium of exchange, a store of value, and a unit of account. The relationship between money demanded and purchasing power is crucial. Loss of purchasing power due to inflation leads to a higher demand for money to maintain consumption levels.
Monetary aggregates group different kinds of money, allowing for a comprehensive study of the money circulating in an economy.
Not all banks in the EU participate in the Eurosystem. Only central banks
Read MoreProject Formulation and Evaluation
Procedures for Formulation and Evaluation
Project Concept
Robbins (1997): A set of activities performed only once, with a defined beginning and end time.
Rodrigo Varela (1977): Any activity aimed at achieving a specific result. Finding a clever solution to a development opportunity or solving a problem. Allocation of resources to an opportunity to achieve certain objectives or goals. Activity to which resources are assigned to achieve a variety of goods (or services).
Nassir Sapag (1991): Explicitly
Read MoreClassical Economic Theories of Growth and Distribution
Ricardo
Production Function and Diminishing Returns
Ricardo’s production function, like Smith’s, acknowledges diminishing marginal productivity. This arises from the fixed supply and varying quality of land. As cultivation extends to less fertile land due to population growth, the same capital and labor yield smaller returns. The rate of this decline is influenced by the pace of innovation. While industry experiences increasing returns due to technological progress and economies of scale, agriculture’
Read MoreUnderstanding Economically Active, Inactive, and Employed Populations
Economically Active Population
A group of people of a certain age who are working or want to work in economic activities. According to the ILO definition:
- Group of people from a certain age (usually the age of completion of compulsory education, varying by country).
- At a certain age, working or seeking work (unemployed). It does not count people who have not sought employment.
- Engaged in economic activities, defined by national accounting plans for data homogenization (e.g., EUROSTAT in the EU). Economic