Wednesday, July 17, 2024

The Twentieth Century Economic Paradigms (CUESTIONARIO)

Conteste el cuestionario con información del texto

The Twentieth Century Paradigms

We can demarcate three epochs of economic thinking over the past century. Each began with new economic analysis and data that undermined the prevailing view, and each altered the way the profession examined the intersection between how the economy works and the role of society and policymakers in shaping economic outcomes. In each of these time periods, economists made an argument to policymakers about what actions would deliver what the profession considered the optimal outcomes for society. Thanks in no small part to the real-world successes of the first epoch, policymakers today tend to listen to economists’ advice.

The first epoch began in the early twentieth century, when Cambridge University economist John Maynard Keynes altered the course of economic thinking. He started from the assumption that markets do not always self-correct, which means that the economy can be trapped in a situation where people and capital are not being fully utilized. Unemployment—people who want to work but are unable to find a job—is due to firms not deploying sufficient investment because they do not see enough customers to eventually buy the goods and services they would produce. From this insight flowed a series of policy prescriptions, key among them the idea that when the economy is operating at less than full employment, only government has the power to get back to full employment, by filling in the gap and providing sufficient demand. Keynes’s contribution is often summarized to be that demand—people with money in their pockets ready to buy—keeps the economy moving. For economists, the methodological contribution was that policymakers could push on aggregate indicators, such as by boosting overall consumption, to change economic outcomes.

Available at https://democracyjournal.org/magazine/53/a-new-economic-paradigm/ (Acceso 17 de junio de 2024)

Cuestionario

1.¿Cuántas épocas del pensamiento económico se pueden demarcar en el último siglo según el texto?

2.¿Qué evento marcó el inicio de la primera época del pensamiento económico en el siglo XX?

3.¿Cuál fue la suposición inicial de John Maynard Keynes sobre los mercados?

4¿.Cómo define Keynes el desempleo en su análisis económico?

5.¿Qué papel asigna Keynes al gobierno cuando la economía opera a menos del pleno empleo?

6.¿Cómo se resume a menudo la contribución de Keynes a la economía?

7.¿Qué tipo de indicadores sugirió Keynes que los responsables de las políticas deberían impulsar para cambiar los resultados económicos?

8.¿Por qué los responsables de las políticas tienden a escuchar los consejos de los economistas hoy en día?

9.¿Qué alteró cada época del pensamiento económico en la profesión?

10.¿Qué argumentaron los economistas ante los responsables de las políticas en cada una de estas épocas?

Tuesday, July 16, 2024

Walras's Law (CUESTIONARIO)

 Answer the questions about the text

Understanding Walras's Law

Walras's law is named after French economist Léon Walras (1834 - 1910), who created general equilibrium theory and founded the Lausanne School of economics. Walras's famous insights can be found in the book Elements of Pure Economics, published in 1874. Walras, along with William Jevons and Carl Menger, were considered founding fathers of neoclassical economics.

Walras's law assumes that the invisible hand is at work to settle markets into equilibrium. Where there is excess demand, the invisible hand will raise prices; where there is excess supply, the hand will lower prices for consumers to drive markets into a state of balance.

Producers, for their part, will respond rationally to changes in interest rates. If rates rise they will reduce production and if they fall they will invest more in manufacturing facilities. Walras predicated all of these theoretical dynamics upon the assumptions that consumers pursue self-interests and that firms try to maximize profits.

Limitations of Walras's Law

In practice, observations have not matched Walras's theory in many cases. Even if "all other markets" were in equilibrium, an excess of supply or demand in an observed market meant that it was not in equilibrium. Walras's law looks at markets as a whole rather than individually.

Economists who studied and built on Walras's law hypothesized that the challenge of quantifying units of so-called "utility," a subjective concept, made it difficult to formulate the law in mathematical equations, which Walras wanted to do. Measuring utility for each individual, not to mention aggregating across a population to form a utility function, was not a practical exercise, critics of Walras's law argued. According to them, if this could not be done, the law would not hold, because utility influences demand.

Available at https://www.investopedia.com/terms/w/walras-law.asp (Acceso 16 de julio, 2024)

 1.   1. ¿Quién es el economista francés al que se le atribuye la creación de la teoría del equilibrio general?

2.  2. ¿Cuál es el título del libro en el que se encuentran los conocimientos más importantes de Walras?

3.     3. ¿En qué año se publicó el libro "Elements of Pure Economics"?

4.    4. ¿Qué economistas, además de Léon Walras, son considerados padres fundadores de la economía neoclásica?

5.    5. ¿Qué asume la ley de Walras sobre el papel de la "mano invisible" en los mercados?

6.   6. ¿Cómo se espera que los productores respondan a los cambios en las tasas de interés según la ley de Walras?

7.  7. ¿Cuáles son las dos suposiciones fundamentales que Walras hace sobre el comportamiento de los consumidores y las empresas?

8.    8. ¿Cuál es una de las limitaciones prácticas de la ley de Walras mencionada en el texto?

9.     9. ¿Cómo se comportan los mercados en la teoría de Walras cuando hay exceso de demanda?

10. 10. ¿Qué dificultad mencionan los críticos de la ley de Walras en relación con la medición de la "utilidad"?

 

 

Definition and Example of a Net Worth Statement (CUESTIONARIO)

Answer the questions about the text
Definition and Example of a Net Worth Statement

A net worth statement is a visual record of the financial wealth of an individual or a business at a specific point in time. It acts like a financial snapshot that allows you to assess your financial status at any given stage of your financial journey.

Knowing the basics of what a net worth statement means and how it works can help you have a clearer picture of where your finances stand. Also, discover how it can serve as a reference point to help you measure the progress of money goals.

Definition and Example of a Net Worth Statement

A net worth statement is a financial tool that shows the financial health and wealth of a company or individual at any given time. Your personal net worth is determined by calculating what you own (assets) minus what you owe (liabilities). A net worth statement provides a summary of your financial status. It gives you a clearer picture of the dollar value of what you own, which can help you measure your overall financial well-being.

If you want to prepare a net worth statement, you would need to list the total value of all your assets and subtract the value of your liabilities. For example, if the list of everything you own has a total value of $100,000 and the list of everything you owe has a value of $60,000, your net worth statement would show that you have a current net worth of $40,000.

            Available at https://www.thebalancemoney.com/what-is-a-net-worth-statement-5225879 (Acceso 17 de julio, 2024)

 ¿Qué es un estado de patrimonio neto?

¿Cómo se describe un estado de patrimonio neto en el texto?

¿Qué utilidad tiene conocer los conceptos básicos de un estado de patrimonio neto?

¿Cómo se determina el patrimonio neto personal?

¿Qué información proporciona un estado de patrimonio neto?

¿Qué pasos se deben seguir para preparar un estado de patrimonio neto?

¿Qué representa la diferencia entre los activos y los pasivos en un estado de patrimonio neto?

En el ejemplo proporcionado, ¿cuál es el valor total de los activos?

En el mismo ejemplo, ¿cuál es el valor total de los pasivos?

¿Cuál es el patrimonio neto en el ejemplo dado en el texto?

Thursday, July 11, 2024

READING EXERCISES

 TEXT 1  Analysis of Financial Statements Analysis of financial statements involves evaluating a company’s financial health, performance, an...