Money, Banking and the Euro
MONEY AND ITS TYPES
Money is anything that constitutes a commonly accepted medium of exchange or payment.
- Commodity Money: The goods chosen as money must have the following qualities: durable, transportable, divisible, homogeneous, and limited supply. Gold and silver were historically chosen as money.
- Fiat Money: Fiat money is an asset that has very low value as a commodity (e.g., paper) but maintains its value as a medium of exchange because its value is endorsed by the entity that issues it.
- Cash
Economic Analysis of Labor: Supply, Demand, and Market Dynamics
Economic Analysis of Labor Reality
1. Neoclassical Microeconomic Theory (Conventional Approach)
a) The labor market is analyzed like goods markets: the interaction of labor supply (workers: LS) and labor demand (companies: LD) determines the market wage (W) and the level of employment (L).
- If W > LD, then W ↓ LD ↑
- If W < LS, then W ↑ LS ↓
b) The behavior of individual workers and companies is guided strictly by economic rationality (Cost-Benefit Analysis).
c) The labor market clears (supply
Read MoreUnderstanding Different Types of Interest
1. Simple Interest
The most common type of interest, simple interest charges a fixed rate on the initial capital (principal) for a specific period. It’s typically calculated monthly but can also be annual. There are two ways interest rates are applied:
- Agreed Interest Rate: The rate is fixed at the start of the loan, regardless of market fluctuations.
- Current Interest Rate: The rate can change based on market conditions during the loan period.
Example: A $10,000 loan at a 2% monthly rate (24% annually)
Read MoreBalance of Payments: Structure and Components
Balance of Payments
The Balance of Payments (BOP) is a systematic record of all economic transactions between residents of a country and the rest of the world during a specific period. It encompasses all international economic transactions, including exports (which generate foreign exchange revenue) and imports (which involve payments in foreign currency). The balance of payments is the difference between total receipts and payments.
Structure of the Balance of Payments
The balance of payments is structured
Read MoreThe Characteristics of an Entrepreneur & The Human Resources Plan
The Characteristics of the Entrepreneur
A. Biographical Characteristics
These circumstances can aid in the entrepreneurial process and are related to experience or training.
- Specialist experience: Experience in specific areas can be relevant for optimizing a product or process.
- Previous business experience: Having lived business experience firsthand, or that of friends or relatives, is instructive, especially when it involves failure. We learn more from mistakes than successes.
- Training: Training activities
Science, Technology, and Business Management
Hard and Soft Technologies
Hard technologies involve designing and producing tangible products to solve problems or meet needs. Soft technologies focus on organizational, management, and administrative techniques to improve institutional functioning and achieve objectives.
Science and Technology’s Interdependence
Science and technology are interdependent. New scientific knowledge leads to technological advancements, while technology provides scientists with the tools needed for research.