Economic Theories and Market Dynamics
Economic Foundations
Economy: The rational application of scarce goods.
Factors of Production: Resources adding value in production.
Historical Economic Theories
Mercantilism (17th-18th Centuries)
Emphasis on precious metals and foreign trade. Key figures: Jean Baptiste Colbert, David Hume.
Physiocrats (18th Century)
Agriculture as the only productive activity. Key figure: François Quesnay.
Classical Economics (Late 18th Century)
Industrial Revolution influence, invisible hand theory (Adam Smith). Key figures:
Read MoreBusiness Organization, Decision-Making, and Personnel Management
Business Organization
The company is the operator that coordinates production factors to achieve predetermined goals. This definition applies to any economic system. Organizing production factors involves making business decisions about responsibilities, resources, financing, sales, distribution, etc.
Decision Making
Decision-making involves establishing or reforming something to an end, coordinating people and resources. Organizations have two major tasks:
- Define departmental tasks.
- Assign individual
Public Revenue, Money Evolution, Inflation, and Financial Markets
Classification of Public Revenues and Taxes
Social Contributions
Payments made to social security for those entitled to benefits.
Charges or Taxes
Taxes
Payments required by law without a specific benefit in return.
Direct Taxes: Taxes on income or wealth (PIT, Corporation Tax).
Indirect Taxes: Taxes on consumption (VAT).
Fees
Payments for the use of public goods or services (garbage collection, driver’s license).
Special Contributions
Payments for benefiting from public works (street paving).
Historical Evolution
Read MoreCapitalism, Crises, and Globalization: An Economic Analysis
Read MorePAC1: Defining the Exploitation Rate
v: Variable capital. These are the working hours needed to produce what workers consume. It’s the part of the total value assigned to the reproduction of workers, who spend all their income on goods.
p: Mass of surplus value, which corresponds to the profits of capitalists. Capitalists, as owners of the means of production, appropriate a portion of the produced value. The surplus is the value that workers produced over the wages they receive.
Exploitation rate:
Depreciation, Payroll, Non-Remunerative Benefits, and Collective Agreement Additions in Argentina
Depreciation Calculation
To calculate depreciation, the following must be considered:
- The value to depreciate
- The recovery value
- The useful life
- The method to be applied
Depreciable Value
This is essentially the acquisition cost. However, the potential salvage value (the value the asset may have for the company when it’s no longer useful) should also be considered. The depreciable value is calculated as follows:
Cost of acquisition of the asset – Estimated recoverable value at the end of use = Depreciable
Read MoreBusiness Structures and Market Analysis
Market Structures
Perfectly Competitive Market
Characterized by homogeneous products, numerous buyers and sellers, none powerful enough to influence prices. All participants are price-takers, and there is free entry and exit to the market.
Monopoly
A single company controls prices and quantities. Monopolies are typically justified for essential services requiring significant infrastructure (e.g., water, electricity). Legal monopolies also exist.
Oligopoly
A few companies share the market, each with
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