Understanding Labor Markets and Economic Dynamics
Characteristics of the Population
The main reference of any labor market is the population from which it draws. The population is the number of people who live in a particular geographical area, but not the entire population equally participates in productive processes. Depending on their degree of participation in the productive process, the population can be categorized as:
- Working-age population: includes the employed and the unemployed.
- Inactive population: only consumes.
Once grouped, population
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Economics Fundamentals
Production and Growth
Productivity
Refers to the amount of goods and services produced for each hour of a worker’s time.Rule of 70
A rule stating that if a variable grows at a rate of x percent per year, that variable will double in approximately 70/x years. For example, a growth rate of 7% would see income per person doubling in 10 years (70 divided by 7), compared to 54 years for a 1.3% growth (70 divided by 1.3 is approximately 53.8).Factors of Production
- Physical Capital
- Human
Money Demand and How Banks Create Money
Money Demand
People demand money to meet expenses and are also interested in holding some of their wealth in the form of money because of its purchasing power, i.e., the amount of goods that can be bought with it.
The public is not interested in the *amount* of coins and notes held, but rather the *amount of goods* they can buy with them (purchasing power).
The reasons why money is demanded are:
- To purchase goods and services (individuals).
- To pay for raw materials and salaries (companies).
Several factors
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Cardinal Duties
These are rules of right behaviour that help protect the company, its people, and its reputation.
- Obedience: Follow the law and company rules. If your boss tells you to break the law, you must follow the law first; they can be personally responsible. Laws always come first (if illegal, don’t do it).
- Loyalty: Always act in the company’s best interest, not your own. Avoid conflicts of interest, don’t use company secrets or resources for personal gain. Don’t take business opportunities
Economic Insights: Globalization and Oil Prices
Globalization: Benefits and Drawbacks
Introduction
The goal of this study is to analyze the benefits and drawbacks of globalization. This report examines two key dimensions: firstly, the benefits of globalization, and secondly, its drawbacks.
Benefits of Globalization
- Employment Opportunities: Companies establishing operations in new countries create job opportunities.
- Educational Access: With institutions globally, it’s easier to pursue education abroad, leading to cultural integration.
- Increased Exchange:
Essential Economics Definitions
Macro Variables
Macro Variables are the key measures for assessing the overall health of a country’s economy. They represent economic activity and the sums of economic variables.
- GDP
- Labour Market
- Inflation Rate
- Interest Rate
- Government Expenditure
- Exchange Rates
- Balance of Payments
Final Good
A final good is an item bought by its final user during a period of time.
Intermediate Good
An intermediate good is an item produced by one firm, bought by another firm, and used as a component of a final good or service.
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