economics: Economics terms
arbitrationthe hearing and determination of a dispute, esp an industrial dispute, by an impartial referee selected or agreed upon by the parties concerned assetautarky(esp of a political unit) a system or policy of economic self-sufficiency aimed at removing the need for imports automationbalanced budgetbalance of paymentsthe difference over a given time between total payments to foreign nations, arising from imports of goods and services and transfers abroad of capital, interest, grants, etc, and total receipts from foreign nations, arising from exports of goods and services and transfers from abroad of capital, interest, grants, etc balance of tradethe difference in value between total exports and total imports of goods balance sheeta statement that shows the financial position of a business enterprise at a specified date by listing the asset balances and the claims on such assets bankan institution offering certain financial services, such as the safekeeping of money, conversion of domestic into and from foreign currencies, lending of money at interest, and acceptance of bills of exchange bankruptcybarriers to entrybarriers to exitbartertrade by the exchange of goods base ratethe rate of interest used by individual commercial banks as a basis for their lending rates bear marketa situation in which the price of shares is falling bida statement by a buyer, in response to an offer by a seller, of the more favourable terms that would be acceptable black economythat portion of the income of a nation that remains illegally undeclared either as a result of payment in kind or as a means of tax avoidance booma period of high economic growth characterized by rising wages, profits, and prices, full employment, and high levels of investment, trade, and other economic activity boycottbridging loana loan made to cover the period between two transactions, such as the buying of another house before the sale of the first is completed budgetan itemized summary of expected income and expenditure of a country, company, etc, over a specified period, usually a financial year budget deficitthe amount by which government expenditure exceeds income from taxation, customs duties, etc, in any one fiscal year building society(in the UK) a cooperative organization that accepts deposits of money from savers and uses them to make loans, secured by mortgages, to house buyers. Since 1986 they have been empowered to offer banking services bull marketa situation in which people are eager to buy shares because they think prices will rise business cyclethe recurrent fluctuation between boom and depression in the economic activity of a capitalist country buyer's marketa state of trade favourable to the buyer, with relatively large supply and low prices capacitycapitalmaterial wealth owned by an individual or business enterprise capital goodcapitalisman economic system based on the private ownership of the means of production, distribution, and exchange, characterized by the freedom of capitalists to operate or manage their property for profit in competitive conditions cartela collusive international association of independent enterprises formed to monopolize production and distribution of a product or service, control prices, etc cashbanknotes and coins, esp in hand or readily available; money or ready money central banka national bank that does business mainly with a government and with other banks: it regulates the volume and cost of credit Chamber of Commerceclosed shop(formerly) an industrial establishment in which there exists a contract between a trade union and the employer permitting the employment of the union's members only collective bargainingnegotiation between one or more trade unions and one or more employers or an employers' organization on the incomes and working conditions of the employees command economy or planned economyan economy in which business activities and the allocation of resources are determined by government order rather than market forces commercial bank or clearing banka bank primarily engaged in making short-term loans from funds deposited in current accounts commissionthe fee allotted to an agent for services rendered commoditysomething of use, advantage, or profit common marketthe European Economic Community comparative advantageconspicuous consumptionspending in a lavish or ostentatious way, esp to impress others with one's wealth consumerconsumer goodconsumptionexpenditure on goods and services for final personal use cooperativea cooperative organization corporationcorporation taxa British tax on the profits of a company or other incorporated body cost-benefit analysisan analysis that takes into account the costs of a project and its benefits to society, as well as the revenue it generates cost effectivenesscost of livingthe average expenditure of a person or family in a given period cost-push inflationcredita sum of money or equivalent purchasing power, as at a shop, available for a person's use credit controlscredit squeezethe control of credit facilities as an instrument of economic policy, associated with restrictions on bank loans and overdrafts, raised interest rates, etc currencya metal or paper medium of exchange that is in current use in a particular country current accountan account at a bank or building society against which cheques may be drawn at any time customs unionan association of nations which promotes free trade within the union and establishes common tariffs on trade with nonmember nations debtsomething that is owed, such as money, goods, or services deflationa reduction in the level of total spending and economic activity resulting in lower levels of output, employment, investment, trade, profits, and prices deindustrializationdemandthe amount of a commodity that consumers are willing and able to purchase at a specified price demand management or stabilization policythe regulation of total spending in an economy to required levels, attempted by a government esp in order to avoid unemployment or inflation: a measure advocated by Keynesian economists demand-pull inflationdeposit accounta bank account that earns interest and usually requires notice of withdrawal depreciationthe reduction in value of a fixed asset due to use, obsolescence, etc depressionan economic condition characterized by substantial and protracted unemployment, low output and investment, etc; slump deregulationdevaluationa decrease in the exchange value of a currency against gold or other currencies, brought about by a government diminishing returnsprogressively smaller rises in output resulting from the increased application of a variable input, such as labour, to a fixed quantity, as of capital or land discounta deduction from the full amount of a price or debt, as in return for prompt payment or to a special group of customers discount house (British)a financial organization engaged in discounting bills of exchange, etc on a large scale primarily by borrowing call money from commercial banks discount ratethe amount of interest deducted in the purchase or sale of or the loan of money on unmatured negotiable instruments disequilibriumdisinflationa reduction or stabilization of the general price level intended to improve the balance of payments without incurring reductions in output, employment, and investment disposable incomethe money a person has available to spend after paying taxes, pension contributions, etc diversificationthe practice of varying products, operations, etc, in order to spread risk, expand, exploit spare capacity, etc divestmentdividenda distribution from the net profits of a company to its shareholders division of labourdumpingthe offering for sale of large quantities (of goods) on foreign markets at low prices in order to maintain a high price in the home market and obtain a share of the foreign markets duopolya situation in which control of a commodity or service in a particular market is vested in just two producers or suppliers durable goodDutch diseasethe deindustrialization of an economy as a result of the discovery of a natural resource, as that which occurred in Holland with the exploitation of North Sea gas, which raised the value of the Dutch currency, making its exports uncompetitive and causing its industry to decline dutya government tax, esp on imports earned incomeincome derived from paid employment and comprising mainly wages and salaries earningsmoney or other payment earned economic growtheconomic policyeconomic sanctionseconomies of scaleembargoemployeeemployeremploymententrepreneurthe owner or manager of a business enterprise who, by risk and initiative, attempts to make profits environmental auditexchangethe system by which commercial debts between parties in different places are settled by commercial documents, esp bills of exchange, instead of by direct payment of money exchange ratethe rate at which the currency unit of one country may be exchanged for that of another expendituresomething expended, such as time or money exportfinancethe system of money, credit, etc, esp with respect to government revenues and expenditures financial yearthe annual period ending April 5, over which Budget estimates are made by the British Government and which functions as the income-tax year fiscal dragthe process by which, during inflation, rising incomes draw people into higher tax brackets, so that their real incomes may fall; this acts as a restraint on the expansion of the economy fiscal policyfiscal yearthe annual period ending April 5, over which Budget estimates are made by the British Government and which functions as the income-tax year Five-Year Planfixed assetsnontrading business assets of a relatively permanent nature, such as plant, fixtures, or goodwill fixed costsfixed exchange-rate systemfixed investmentfloating exchange-rate systemforeclosurethe legal procedure for satisfying claims against a mortgagor in default who has not redeemed the mortgage: satisfaction may be obtained from the proceeds of a forced sale of the property foreign exchange controlsforeign exchange marketthe market for the international buying, selling and trading of currencies forfaitingthe financial service of discounting, without recourse, a promissory note, bill of exchange, letter of credit, etc, received from an overseas buyer by an exporter; a form of debt discounting franchiseauthorization granted by a manufacturing enterprise to a distributor to market the manufacturer's products free-market economyan economy based on the free market system free riderfree tradeinternational trade that is free of such government interference as import quotas, export subsidies, protective tariffs, etc free trade areafree trade zone or freeportfreightthe price charged for such transport friendly societyan association of people who pay regular dues or other sums in return for old-age pensions, sickness benefits, etc fringe benefitsfull employmenta state in which the labour force and other economic resources of a country are utilized to their maximum fundingmoney provided in the form of a fund futures market or forward exchange marketa market for contracts that specify the exchange rate of a currency to be delivered at a later date gains from tradegame theorymathematical theory concerned with the optimum choice of strategy in situations involving a conflict of interest gilt-edged security or government bonda bond issued by a country's government, in its own currency gold standarda monetary system in which the unit of currency is defined with reference to gold greenfield investmentgross domestic product or GDPthe total value of all goods and services produced domestically by a nation during a year. It is equivalent to gross national product minus net investment incomes from foreign nations gross national product or GNPgross profitthe difference between total revenue from sales and the total cost of purchases or materials, with an adjustment for stock hard currencya currency which is widely accepted throughout the world due to its economic stability hedginghirethe price paid or payable for a person's services or the temporary use of something hire purchase or HPhoardingholdingland held under a lease and used for agriculture or similar purposes horizontal integrationhot moneycapital transferred from one financial centre to another seeking the highest interest rates or the best opportunity for short-term gain, esp from changes in exchange rates human capitalthe abilities and skills of any individual, esp those acquired through investment in education and training, that enhance potential income earning hyperinflationimperfect competitionthe market situation that exists when one or more of the necessary conditions for perfect competition do not hold importimport restrictionsincomethe amount of monetary or other returns, either earned or unearned, accruing over a given period of time income taxa personal tax, usually progressive, levied on annual income subject to certain deductions index-linkedindirect taxa tax levied on goods or services rather than on individuals or companies industrial disputea disagreement between employees and employer, often leading to strike action industrial estateindustrial policyindustrial relationsthose aspects of collective relations between management and workers' representatives which are normally covered by collective bargaining industrial sectorinflationary spiralthe situation in which price and income increases may each induce further rises in the other information agreementinfrastructurethe stock of fixed capital equipment in a country, including factories, roads, schools, etc, considered as a determinant of economic growth inheritance tax(in Britain) a tax introduced in 1986 to replace capital transfer tax, consisting of a percentage levied on that part of an inheritance exceeding a specified allowance, and scaled charges on gifts made within seven years of death insolvencythe fact or condition of being insolvent; bankruptcy instalment creditinstitutional investorsinsurancethe act, system, or business of providing financial protection for property, life, health, etc, against specified contingencies, such as death, loss, or damage, and involving payment of regular premiums in return for a policy guaranteeing such protection intangible assetsproperty or assets that are saleable though not possessing intrinsic productive value intangiblesintellectual property rightinteresta right, share, or claim, esp in a business or property interest ratethe rate of interest payable on borrowed money international competitivenessinternational debtinternational reservesinvestmentthe act of investing money invisible balancethe difference in value between total exports of services plus payment of property incomes from abroad and total imports of services plus payment abroad of property incomes invisible handinvoicea document issued by a seller to a buyer listing the goods or services supplied and stating the sum of money due joint-stock companya business enterprise characterized by its separate legal existence and the sharing of ownership between shareholders, whose liability is limited joint venturejunk bonda security that offers a high yield but often involves a high risk of default labourproductive work, esp physical toil done for wages labour marketthe market in which employers look and compete for workers and in which workers look and compete for employment labour theory of valuelaissez faire or laisser fairethe doctrine of unrestricted freedom in commerce, esp for private interests leasea contract by which property is conveyed to a person for a specified period, usually for rent legal tendercurrency in specified denominations that a creditor must by law accept in redemption of a debt lenderliabilityliquidationthe process of terminating the affairs of a business firm, etc, by realizing its assets to discharge its liabilities liquid assetliquiditythe possession of sufficient liquid assets to discharge current liabilities listed companya company whose shares are quoted on the main market of the London Stock Exchange loanproperty lent, esp money lent at interest for a period of time lockoutthe closing of a place of employment by an employer so as to bring pressure on employees to agree to terms macroeconomic policymanagement buy-outmarginal revenuemarginal utilitymarket the trading or selling opportunities provided by a particular group of people market failuremass productionthe production of goods in large quantities, esp. by machinery and division of labor means testa test involving the checking of a person's income to determine whether he qualifies for financial or social aid from a government mediationa method of resolving an industrial dispute whereby a third party consults with those involved and recommends a solution which is not, however, binding on the parties medium of exchangeanything acceptable as a measure of value and a standard of exchange for goods and services in a particular country, region, etc medium-term financial strategymercantilisma theory prevalent in Europe during the 17th and 18th centuries asserting that the wealth of a nation depends on its possession of precious metals and therefore that the government of a nation must maximize the foreign trade surplus, and foster national commercial interests, a merchant marine, the establishment of colonies, etc merchant bank(in Britain) a financial institution engaged primarily in accepting foreign bills, advising companies on flotations and takeovers, underwriting new issues, hire-purchase finance, making long-term loans to companies, and managing investment portfolios, funds, and trusts mergerthe extinguishment of an estate, interest, contract, right, offence, etc, by its absorption into a greater one microeconomic policymiddlemanan independent trader engaged in the distribution of goods from producer to consumer minta place where money is coined by governmental authority mixed economymonetarismthe theory that inflation is caused by an excess quantity of money in an economy monetary compensatory amounts, MCAs, or green moneymonetary policymoneya medium of exchange that functions as legal tender money supplythe total amount of money in a country's economy at a given time monopolyexclusive control of the market supply of a product or service moonlightingmortgagean agreement under which a person borrows money to buy property, esp a house, and the lender may take possession of the property if the borrower fails to repay the money multinationalnational debtnational incomethe total of all incomes accruing over a specified period to residents of a country and consisting of wages, salaries, profits, rent, and interest national insurance contributionsnationalizationnational productnatural rate of unemploymentnet profitgross profit minus all operating costs not included in the calculation of gross profit, esp wages, overheads, and depreciation nondurable goodoffshoreoligopolya market situation in which control over the supply of a commodity is held by a small number of producers each of whom is able to influence prices and thus directly affect the position of competitors overheadsbusiness expenses, such as rent, that are not directly attributable to any department or product and can therefore be assigned only arbitrarily overheatingthe process of tending (an economy) towards inflation, often as a result of excessive growth in demand overmanningovertimethe rate of pay established for such work patentpawnbrokera dealer licensed to lend money at a specified rate of interest on the security of movable personal property, which can be sold if the loan is not repaid within a specified period paymoney given in return for work or services; a salary or wage pay-as-you-earn or PAYEpayrolla list of employees, specifying the salary or wage of each pensiona regular payment made by an employer to former employees after they retire pension funda fund of money that is used to pay people's pensions per capita incomethe total income of an area or country divided by the number of people in that area or country perfect competitiona market situation in which there exists a homogeneous product, freedom of entry, and a large number of buyers and sellers none of whom individually can affect price personal equity plan or PEPpicketan individual or group that stands outside an establishment to make a protest, to dissuade or prevent employees or clients from entering, etc pieceworkpolluter pays principleportfoliothe complete investments held by an individual investor or by a financial organization poverty trapthe situation of being unable to escape poverty because of being dependent on state benefits, which are reduced by the same amount as any extra income gained premiuman amount paid in addition to a standard rate, price, wage, etc; bonus premium bondpricethe sum in money or goods for which anything is or may be bought or sold prices and incomes policyvoluntary or statutory regulation of the level of increases in prices and incomes primary sectorprivate enterpriseprivate propertyprivatizationproducer a person or business enterprise that generates goods or services for sale productionthe creation or manufacture for sale of goods and services with exchange value productivitythe output of an industrial concern in relation to the materials, labour, etc, it employs profitexcess of revenues over outlays and expenses in a business enterprise over a given period of time, usually a year profitabilityprofit-and-loss accountprofit marginthe percentage profit made by a company in relation to sales profit sharingthe practice of dividing a share of the profits of a business among employees, in addition to paying their regular wages and salaries progressive taxationprotectionismpublic expenditurespending by central government, local authorities, and public corporations public financepublic interestpublic-sector borrowing requirement or PSBRpublic-sector debt repaymentpublic utilitypublic workspump priminggovernment expenditure designed to stimulate economic activity in stagnant or depressed areas purchasing powerthe purchasing power of a currency is the amount of goods or services that you can buy with it quality controlratchet effectan effect that occurs when a price or wage increases as a result of temporary pressure but fails to fall back when the pressure is removed rational expectationsrationalizationrationingthe process of restricting consumption of certain commodities recessiona temporary depression in economic activity or prosperity recommended retail pricethe selling price of a product officially suggested by a manufacturer to a retailer recoveryrecyclingredundancyreflationan increase in the supply of money and credit designed to cause such an increase regional policyrentthat portion of the national income accruing to owners of land and real property rent controlsresearch and development or R & Dresidual unemploymentthe unemployment that remains in periods of full employment, as a result of those mentally, physically, or emotionally unfit to work restrictive labour practiceretailthe sale of goods individually or in small quantities to consumers retail price index(in Britain) a list, based on government figures and usually published monthly, that shows the extent of change in the prices of a range of goods selected as being essential items in the budget of a normal household revaluationrevenuethe income accruing from taxation to a government during a specified period of time, usually a year risk analysissalarya fixed regular payment made by an employer, often monthly, for professional or office work as opposed to manual work salessavingreduction in cost or expenditure savings banka bank that accepts the savings of depositors and pays interest on them seasonal unemploymentself-employmentself serviceself-sufficiencyseller's marketa state of trade favorable to the seller, with relatively great demand and high prices of something for sale sequestrationservice sectorshareany of the equal parts, usually of low par value, into which the capital stock of a company is divided: ownership of shares carries the right to receive a proportion of the company's profits shareholderthe owner of one or more shares in a company share issuewhen there is a share issue, shares in a company are made available for people to buy share price indexshopa place, esp a small building, for the retail sale of goods and services shop stewarda coworker elected by trade union members to represent them in discussions and negotiations with the management simple interestinterest calculated or paid on the principal alone slumpa decline in commercial activity, prices, etc social costssocio-economic groupsoft currencymoney of a specific country that is liable to depreciate in value and is difficult to exchange for another currency specializationspeculationinvestment involving high risk but also the possibility of high profits stagflationa situation in which inflation is combined with stagnant or falling output and employment standard of livingstockthe total goods or raw material kept on the premises of a shop or business stockbrokera person who buys and sells securities on a commission basis for customers stock controlthe management of goods for sale so that a company has exactly the right amount of them at any one time stock exchange, stock market, or (N.Z.) share marketa highly organized market facilitating the purchase and sale of securities and operated by professional stockbrokers and market makers according to fixed rules stop-go cyclestructural unemploymentunemployment resulting from changes in the structure of an industry as a result of changes in either technology or taste subsidiary companya company with at least half of its capital stock owned by another company subsidya financial aid supplied by a government, as to industry, for reasons of public welfare, the balance of payments, etc suppliersupply a person or business enterprise that generates goods or services for sale supply-side economicsa school of economic thought that emphasizes the importance to a strong economy of policies that remove impediments to supply surplusan excess of total assets over total liabilities synergythe potential ability of individual organizations or groups to be more successful or productive as a result of a merger takeoverthe assumption of ownership or control of a corporation, esp. through the acquisition of its stock tangible assetsphysical financial assets, as of a business, etc; for example, property, vehicles, equipment, etc tariffa tax levied by a government on imports or occasionally exports for purposes of protection, support of the balance of payments, or the raising of revenue taxa compulsory financial contribution imposed by a government to raise revenue, levied on the income or property of persons or organizations, on the production costs or sales prices of goods and services, etc taxationthe act or principle of levying taxes or the condition of being taxed tax avoidancereduction or minimization of tax liability by lawful methods tax evasionreduction or minimization of tax liability by illegal methods tax havena country or state having a lower rate of taxation than elsewhere terms of tradethe ratio of export prices to import prices. It measures a nation's trading position, which improves when export prices rise faster or fall slower than import prices tradethe act or an instance of buying and selling goods and services either on the domestic (wholesale and retail) markets or on the international (import, export, and entrepôt) markets trade barriertrademarktrade unionan association of employees formed to improve their incomes and working conditions by collective bargaining with the employer or employer organizations trade-weighted indextrainingtransactiontrusta group of commercial enterprises combined to monopolize and control the market for any commodity: illegal in the US trusteeunderwritera person or enterprise that underwrites public issues of shares, bonds, etc unearned incomeincome from property, investment, etc, comprising rent, interest, and dividends unemploymentthe number of unemployed workers, often as a percentage of the total labour force unemployment benefituniform business rate or UBRunit of accountthe function of money that enables the user to keep accounts, value transactions, etc unit trustan investment trust that issues units for public sale, the holders of which are creditors and not shareholders with their interests represented by a trust company independent of the issuing agency utilitya public service, such as the bus system; public utility value-added tax or VATa form of indirect sales tax paid on products and services at each stage of production or distribution, based on the value added at that stage and included in the cost to the ultimate consumer variable costsventure capitalcapital that is provided for a new commercial enterprise by individuals or organizations other than those who own the new enterprise vertical integrationvoluntary unemploymentwagethe portion of the national income accruing to labour as earned income, as contrasted with the unearned income accruing to capital in the form of rent, interest, and dividends wage restraintan agreement not to demand or pay large wage increases wealtha large amount of money and valuable material possessions welfare statea system in which the government undertakes the chief responsibility for providing for the social and economic security of its population, usually through unemployment insurance, old-age pensions, and other social-security measures wholesalerworker participationa process by which subordinate employees, either individually or collectively, become involved in one or more aspects of organizational decision making within the enterprises in which they work working capitalcurrent assets minus current liabilities yieldthe energy released by the explosion of a nuclear weapon expressed in terms of the amount of TNT necessary to produce the same energy ▷ See economics
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Word List of economics: Economics terms from the Collins English Word Lists