Privatization, Finance, and Economic Concepts
Privatization of Public Enterprises
Privatization of public enterprises involves selling state-owned enterprises to the private sector. This practice has become more common in recent years and is used as a rapid method of financing deficits. However, this sale deprives the state of permanent income from state welfare benefits provided by these companies.
Key Economic Concepts
- Bank Deposit: Contracts between economic-financial entities and operators where the latter provides a financial institution
Aggregate Demand and Supply, GDP, and Market Dynamics
Aggregate Demand and Supply
Aggregate Demand (AD): Definition & Components
AD: The total demand for goods and services in an economy at a given price level. It’s the sum of:
- Consumption (C): Household spending on goods and services. Advanced Note: This is influenced by factors like disposable income, consumer confidence, and interest rates.
- Investment (I): Business spending on capital goods (machinery, equipment, etc.) and changes in inventories. Advanced Note: Investment is sensitive to interest
Inventory, Markets, Products, and Marketing Essentials
Functions of Inventory
Companies keep inventories for several reasons, based on the functions they accomplish:
- Security against uncertainty: Buffers against fluctuations in sales and supply.
- Production and distribution differentiation: Useful in cases of highly seasonal demand.
- Economies of scale: Purchasing materials in large quantities allows for quantity discounts and lower transport and transaction costs.
- Protection against inflation: Hedges against price variability.
Market Types
Perfect Competition:
Airline Economics and Fleet Planning Essentials
Key Concepts in Airline Economics and Fleet Planning
1. The Inverse Relationship Between Price and Quantity Demanded: The Law of Demand states that there is an inverse relationship between price and quantity demanded.
2. Non-Price Determinants of Airline Economics:
- The preferences of passengers
- The number of passengers in a particular market
3. Determinants of Airline Passenger Elasticity:
- Competition
- Travel distance and related price
4. Passenger Price Sensitivity: Leisure/pleasure passengers are elastic
Read MoreEconomic Operators, Resource Allocation, and Economic Theory
Economic Operators
Economic operators are the decision-makers within an economic system, engaging in core activities to produce, consume, and accumulate. These include:
- Families: Make decisions about consumption and savings, determining what goods and services to buy to meet their needs.
- Companies: Economic units that produce goods and services, combining and organizing factors of production to create end products.
- Government: Governs the operation of the system, influencing the economy through taxation,
Job Intermediation: Methods, Agencies, and Recruitment
Job Intermediation: Methods of Job Search
Methods of job search include:
- Friends, relatives, and acquaintances
- Internet and newspaper ads
- Employment agencies
- Red EURES: Job Search in Europe
- Temporary employment agencies (ETT)
- Search firms or direct recruitment firms
- Job boards of professional associations, universities, and business associations
- Unions
Job placement is a set of measures intended to bring together the supply and demand of work, providing workers with jobs suited to their characteristics and
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