eco note

- l’externalité, (CHAP 2)

Positive externality in economics refers to a situation where the actions of a person/entity result in benefits to others in society, without compensation. Examples include education, vaccinations, and research and development.

Negative externality in economics refers to a situation where the actions of a person or entity impose costs on others in society, without compensation. Examples include pollution, noise pollution, and second-hand smoke.

- les mécanismes de développement économique des territoires, (chap 4)

• Are strategies and actions that stimulate economic growth and improve living conditions in a given region.

• it varies according to the specific characteristics and needs of each territory

Example: a rural region can focus on the development of agriculture and rural tourism, while an urban region can focus on the development of creative industries and information technology.

• May be influenced by government policies, national and international economic conditions, available resources.

- les effets multiplicateurs,

• The expense multiplier is based on the idea that each initial expense leads to an increase in income and demand.

  exemple : If the government decides to spend a sum of money on the construction of new infrastructure, it will generate revenue for companies in the construction sector, which in turn will spend this money to buy goods and services from other sectors of the economy, thus stimulating overall demand and contributing to economic growth.

• The investment multiplier focuses on the impact of investments on the economy.

  exemple : When a company decides to invest in new machinery or equipment, it generates additional income for the suppliers of these capital goods. These suppliers, in turn, will spend this money in other sectors of the economy, creating a multiplier effect.

• The tax multiplier measures the impact of tax measures on the economy.

  exemple : If the government decides to reduce taxes, it can increase households' disposable income, which encourages them to spend more. This increase in household spending will stimulates overall demand.

- les mécanismes d'appréciation et de dépréciation de la monnaie,

Appreciation is when a currency experiences an increase in value when it is compared to other currencies.

• An advantage : it makes foreign goods appear cheaper relative to domestic goods and keeps inflation low

• increases imports and decreases exports because foreign goods appear cheaper.

Depreciation is when a currency experiences a decrease in value when it is compared to other currencies.

• An advantage : domestic prices appear cheaper in foreign markets which increases exports and promotes a trade surplus

• decreases imports and increases exports because domestic goods appear cheaper to foreign markets.

- le fonctionnement de la dette en économie

• Debt allows individuals and companies to make large purchases they couldn't afford

• Common forms of debt include loans, mortgages, auto loans, and credit cards

• Borrowers must repay the debt with interest by a certain date, with interest

• Interest compensates the lender for the risk of the loan

• Debt can be advantageous when used properly, such as buying a home or car

• Credit cards can be convenient and helpful in emergencies

• Access to debt can help companies expand and compete

• Debt can be risky for both borrowers and lenders

• Consumers can accumulate unmanageable debt with multiple credit cards

• Companies may struggle to make interest payments if sales drop

• Too much debt can burden a company and limit its growth

• Having a plan for paying off debt is crucial

• Avoiding excessive debt is the best way to stay out of financial trouble.

Debt is something, usually money, owed by one party to another. Debt is used by many individuals and companies to make large purchases that they could not afford under other circumstances. Unless a debt is forgiven by the lender, it must be paid back, typically with added interest. The most common forms of debt are loans, including mortgages, auto loans, and personal loans, as well as credit cards. Under the terms of a most loans, the borrower receives a set amount of money, which they must repay in full by a certain date, which may be months or years in the future. The terms of the loan will also stipulate the amount of interest that the borrower is required to pay, expressed as a percentage of the loan amount. Interest compensates the lender for taking on the risk of the loan. Properly used, debt can be advantageous to individuals and companies alike. Few people could buy a home without a mortgage, and many people couldn't afford a new car without an auto loan. Credit cards can be a great convenience and even a lifesaver in emergency situations. For companies, access to debt can make all the difference in their ability to expand and compete. But debt can be risky, for borrower and lender alike. With enough credit cards in their wallets, consumers can easily accumulate an unmanageable amount of debt, especially if they lose their jobs or face another serious setback. Companies that take on a large amount of debt may not be able to make their interest payments if sales drop, putting the business in danger of bankruptcy. Even if it doesn't reach that point, having too much debt can impose a crippling burden on a company, requiring it to devote much of its income to debt repayment rather than more productive purposes. The best way to stay out of debt trouble is to have a plan for paying it off. That starts with not taking on too much debt in the first place.