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Economic Activity

The document presents data on a student who can allocate 25 hours per week between studying math and working at McDonald's. The student's math score and salary earned are shown for different time allocations. A production possibilities curve can be drawn based on this data, with math score on the y-axis and salary on the x-axis. Points representing the different time allocations fall on or below the curve, with points above the curve unattainable.
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0% found this document useful (0 votes)
20 views33 pages

Economic Activity

The document presents data on a student who can allocate 25 hours per week between studying math and working at McDonald's. The student's math score and salary earned are shown for different time allocations. A production possibilities curve can be drawn based on this data, with math score on the y-axis and salary on the x-axis. Points representing the different time allocations fall on or below the curve, with points above the curve unattainable.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Options Basic goods (units) Luxury goods (units) Oportunity cost(L.

G)
A 0 85
B 92 35 -50
C 100 25 -10
D 120 0 -25

Productio
9085
80
70
60

Luxury goods
50
40
30
20
10
0
0 20 40
Oportunity cost(B.G)
-92 Interpretation: All the dots on
-8 reachable by being efficent (A,
points under the line represen
-20 ones up and beyond the line a
because that economy dosen't
resurces(factor of production)

Production Posibility Curve


9085
80
70
60
Luxury goods

50
40 35
30 25
20
10
0
0
0 20 40 60 80 100 120 140
Basic goods
Interpretation: All the dots on the line are
reachable by being efficent (A,B,C and D). The
points under the line represent eneffiency and the
ones up and beyond the line are unreachable
because that economy dosen't have
resurces(factor of production) to get over them.
Capital goods (units) consumer goods (units)
A 0 120
B 30 90
C 35 80
D 50 0

PRODUCTINO POSSIBILITY CURVE


140
120
120
Consumer goods (units)

100 90
80
80

60

40

20
0
0
0 10 20 30 40 50 60
Capital goods (units)
Capital goods (units) consumer goods (units)
0 150
30 120
35 100
50 10

PPC
160150
140
120
CONSUMER GOODS UNITS

120
100
100
80
60
40
20 10

0
0 10 20 30 40 50 60
CAPITL GOODS UNITS
Decition Study (Hours) work (Hours) Average mark Money(€)
A 0 20 2.5 450
B 5 15 4.2 375
C 10 10 5.3 334
D 15 5 7.2 132
E 20 0 8.1 0
Isabel is a student who distributes her freetime between st
A) Where is Isabel being more eficent with her time? She is
the line as well.

B) Is isabel efficent in the point (7,1)? No, she is not becau

C) Is posible to Isabel to reach the point(7,8)? No it isn't. It

A
Ecomics
combination of time (h) 20
Marks 8

Decisions Economics marks English Marks


A 8 0
B 7 3
C 5 5
D 3 7
E 0 8

Marks
9
8
8
7
7
6
Englishs marks

5
5
4
3
3
2
1
0
0
0 1 2 3 4 5 6 7 8 9
Economics marks
her freetime between studying englis and economics. Her marks in these two subjects are reflected on the chart below.
ent with her time? She is beeing the most eficent while she is on the line.All the 5 decisions are efficient and they are on

1)? No, she is not because she might have reached (7,3).

point(7,8)? No it isn't. It's an unreacheble point, she has not enough resurce-time to obtain these marks.

A B C D E
English Economics English Economics English Ecomics English Ecomics
0 15 5 10 10 5 15 0
0 7 3 5 5 3 7 0

0
7 8 9
chart below.
d they are on

E
English
20
8
Working time/study time salary Math's score
25--0 1,000 € 0
20--5 800 € 3
15--10 600 € 5
10--15 400 € 7
5--20 150 € 9
0--25 0€ 10

PPC
12

10 10
9
8
Math's score

7
6
5
4
3
2

0 0
€0 €200 €400 €600 €800 €1,000 €1,200
Salary
A student has got a total of 25 hour a week to distribute between two activities wich are precisely to study
maths and to work at a McDonald's to get some money. The possible outcome of distributing that time is
as follows.
A) Represent the PPC.
Math's score B) Is it possible for the student to reach over the pointe (1000€,2)?
It's not possible for that student to obtain a 2 in maths if he/she spends all his/her time at work. In that
case, he can only get a 0 in maths.
C) Why is not recommendable at all to saty in the combination(600€,2)?
The student could easily have obtain a 5 in maths at that stage (with this distrbutio of timr), by obtaining
just a 2 it's clear that is wasting time so that is not efficient.
D) Imagine that student is obtaining 600€ and mark of 3 in maths. How many hour is he/she wastting?
In that distribution of time (15/10), he/she could have obtained a 5 in Maths but instead he/she obtained
a 3 wich is the outcome of the combination(20/5)., it's clear that is wasting 5 hours of study(inefficiency).

0
€800 €1,000 €1,200
vities wich are precisely to study
ome of distributing that time is

his/her time at work. In that

istrbutio of timr), by obtaining

any hour is he/she wastting?


hs but instead he/she obtained
g 5 hours of study(inefficiency).
Ideas Atractive for the Market
Organize weddings 5
Cibersecurity 10
Take care of old people 5
Rent a friend 5
Supermarket 0

Assessing scale
if the idea complies with the criterion 10
if the idea half complies with the criterion 5
if the idea doesn't comply with the criterion 0
Innovative Complexityof the buisness Necesity of human resources
0 5 10
5 5 5
0 0 0
10 10 5
0 5 0
Necesity of technologycal resources Total
5 25
0 25
0 5
5 35
5 10
Sold-units Price Revenue
0 0.50 € - €
1 0.50 € 0.50 €
2 0.50 € 1.00 €
3 0.50 € 1.50 €
4 0.50 € 2.00 €
5 0.50 € 2.50 €
500 0.50 € 250.00 €
700 0.50 € 350.00 €
701 0.50 € 350.50 €

Sold-units Fixed-cost Variable cost Total Cost


0 70.00 € - € 70.00 €
1 70.00 € 0.40 € 70.40 €
2 70.00 € 0.80 € 70.80 €
3 70.00 € 1.20 € 71.20 €
4 70.00 € 1.60 € 71.60 €
5 70.00 € 2.00 € 72.00 €
500 70.00 € 200.00 € 270.00 €
700 70.00 € 280.00 € 350.00 €
701 70.00 € 280.40 € 350.40 €

Sold-units Profit
0 - 70.00 €
1 - 69.90 €
2 - 69.80 €
3 - 69.70 €
4 - 69.60 €
5 - 69.50 €
500 - 20.00 €
700 - €
701 0.10 €
Unite price 0.50 €
Variable cost per unit 0.40 €
fixed costs 70.00 €

Contribution margin 0.10 €


break-even point 700

Profit
€10.00
€-
0 100 200 300 400 500 600 700 800
€(10.00)
€(20.00)
€(30.00)
Profit

€(40.00)
€(50.00)
€(60.00)
€(70.00)
€(80.00)
Sold-units
Verdiflor runs a stand in the local mark
matirials/per bunch (flowers) and 10 €
A) Calculate the contribution margin
B) Calculate the profit in August
C) Calculate the breake-even point
D) Calculate the profitability (rentabilid
E)The figure in September have been t
*Sales=80 Bunches of flowers
*Sale-price at the market=25€/unit
*Note: the cost of raw -material and

A)
C)
B)

D)
uns a stand in the local market in Dos Hermanas, for the right of setting up that stand, it pays 400€/month. For each bunch of flowers, i
per bunch (flowers) and 10 € of labour. During August, Verdiflor sold 100 bunches in the markert at a price of 30€/unit.
te the contribution margin
e the profit in August
e the breake-even point
te the profitability (rentabilidad) on costs
re in September have been the following ones:
80 Bunches of flowers
ice at the market=25€/unit
he cost of raw -material and labour don´t change (8€/unit and 10€/unit) and the cost of renting the stand is the same eitheer(400€).

AUGUST SEPTEMBRE
CM=price per unit-variable cost per unit.)(€) 12.00 € 7.00 €
BEP=FIXED COSTS/CM(NUMBER OF UNITS) 33.33 57.14
Profit(losses)=REVENUE-VARIABLE COSTS -FIXED COSTS(€) 800.00 € 160.00 €
REVENUE=SOLD UNITS*PRICE PER UNITS(€) 3,000.00 € 2,000.00 €
VARIABLE COSTS=MANUFACTURED UNITS*VARIABLE COSTS PER UNITS(€) 1,800.00 € 1,440.00 €

PROFITABILITY ON COST= PROFIT/TOTAL COST (%) 36.4% 8.70%

TOTAL COST(€) 2,200.00 € 1,840.00 €


month. For each bunch of flowers, it employs 8€ of raw-
a price of 30€/unit.

stand is the same eitheer(400€).

(Needs to sell 58 units to break-even)


Sillas Garzón manufactures woode
labour in flollowing quantities for e
August *raw-material=4€/chair
*Labour=2€/chair
1 Total cost 1,183.33 € During August, it produce 100 unit
2 Revenue 1,500.00 € has to pay a rent of 500€/month an
*Total cost
3 CM 9.00 € *Revenue in August
4 Profit 316.67 € *Contribution margin
5 B.E.P 64.81 * The profit of the company in Aug
*The break-even point
9 Profitability 26.8%
s Garzón manufactures wooden chairs at his workshop. He employs raw-matirial and
ur in flollowing quantities for each chair:
w-material=4€/chair
bour=2€/chair
ng August, it produce 100 units and he sold them out at a price of 15€/unit. Sillas G.
to pay a rent of 500€/month and an insurance policy of 1000€/ year.
al cost
venue in August
ntribution margin
e profit of the company in August
e break-even point
2021QI 2021 QII 2021 QIII 2021 QIV
Both sexes 10.99 10.02 9.91 8.43 Unemployment rate 2021 in the Basqu
Males 10.67 9.63 9.38 8.94 12
11.5 11.32
Females 11.32 10.42 10.47 7.9 10.99
11 10.67
10.42 10.47
10.5
10.02 9.91
10 9.63
9.5 9.38
9
8.5
8
7.5
7
2021QI 2021 QII 2021 QIII
Both sexes Males Fem
ent rate 2021 in the Basque country

10.42 10.47
10.02 9.91
9.63
9.38
8.94
8.43
7.9

2021 QII 2021 QIII 2021 QIV


Both sexes Males Females
III.Q IV.Q
Employed 19343.50 20184.90
Unemployed 3719.80 3103.80
Labour Force 23063.30 23288.70

Labour force III.Q

3719.80; 16% 3103.8

Employed
Unemployed

19343.50; 84%
Unemployment Tendency

Labour force IV.Q 3800.00

3700.00

3600.00
3103.80; 13% 3500.00

Employed 3400.00
Unemployed
3300.00

3200.00
20184.90; 87%
3100.00

3000.00

III.Q
IV.Q
mployment Tendency

Q
IV.Q
In july 2021, the infoirmation on the spanish labour market is as follows
A) The number of people over 16 years old is 39,566,438
B) The number of people in the labour force is 21,975,200
C) The workers are 18,607,200
Calculate:
1. How many people are unemployed
2. The rate of acitivity an unemployemnt
3. Represent the calculated numbers in columns along the rest of informa

1. Unemployed Labour force-employed


2a)Activity rate Labour force/population over 16(%)
our market is as follows
,566,438
21,975,200

s along the rest of information

3368000
8.51226486
A local company has got the following fixed costs:
*Renting of the shop=500€/month
*Salaries= 2400€/month
*Insurances= 600€/yearly
In other side in April 2022 it has the following variable costs
*Raw matireals= 2 €/ unit
*Energy and other supplies= 5 €/unit
In April, this company has sold out 2000 units.
The company hassold ol the units at the price of 50€.

Total fixed costs 2,950.00 €


Total variable costs 14,000.00 €
Total final cost 16,950.00 €

Revenue 100,000.00 €

Profit 83,050.00 €

Profitability 490%

Contribution Margin 43.00 €

BEP 69
:

riable costs

50€.

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