Project 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
Understanding Production Costs: Short-Term and Long-Term Analysis
Theoretical Support Document No. 7: Production Costs
Total Cost Curves: Short Term
Cost curves illustrate the minimum expense to achieve various production levels, encompassing both explicit and implicit costs. Explicit costs are direct outlays for inputs, while implicit costs relate to the value of company-owned resources used in production (see Case 1).
In the short term, at least one factor of production is fixed. Total fixed costs (TFC) are constant obligations. Total variable costs (TVC) fluctuate
Read MoreUnderstanding Market Structures: Competition to Monopoly
Different Types of Markets
Not all markets are equal. When we buy something, we face different market types. Internet companies, for example, have few competitors, but suppliers offer similar products, leading to competition. This competition causes suppliers to behave differently depending on the market, and strategies are developed to compete, including price changes. Fewer firms mean less competition and a greater possibility of price increases. Consumer protection laws exist to regulate these
Read MoreUnderstanding Supply: Factors, Costs, Elasticity, and Market Dynamics
Supply in Economics
Supply refers to the quantity of goods or services that producers are willing and able to sell at various market prices. Supply can be analyzed at the individual level or for the entire market (total supply).
Factors Affecting Supply
Several key factors influence supply:
- Production Costs: These are the expenses incurred in producing goods or services.
- Technological Level: Advances in technology can impact production efficiency and costs.
- Price of the Good: The selling price of the