Profit: In
economic theory, profit is the reward for risk taken by enterprise.
Deficit:
when more money goes out that comes in.
Unemployment:
the number of people of working age without a job.
Wages: the
price of labour.
Investment:
putting money to work, in the hope of making even more money.
Budget: an annual
procedure to decide how much public spending there should be in the year ahead
and what mix of taxation, charging for services and borrowing should finance
it.
Elasticity:
a measure of the responsiveness of one variable to changes in another.
Recession:
a period of slow or negative economic growth.
Oligopoly:
when a few markets dominate a market.
Barter:
paying for goods or services with other goods or services.
Assets:
things that have earning power or some other value to their owner.
Inflation:
rising prices.
Inelastic:
when the supply or demand for something is insensitive to changes in another
variable.
Income: the
flow of money to the factors of production.
Rent: the
income from hiring out land or other durable goods.
Rent: a
measure of market power.
Econometrics:
mathematics and sophisticated computing applied to economics.
Vertical equity:
the principle that people with a greater ability to pay should hand over more
tax to the government that those with lesser ability to pay.
Horizontal
equity: people with a similar ability to pay taxes should pay the same amount.
Antitrust: government
policy for dealing with monopoly.
Depreciation:
a fall in the value of asset or a currency.
Appreciation:
when the value of a currency rises relative to another.
Currency:
money in any form when in actual use as a medium of exchange.
Shares:
financial securities, each granting part ownership of a company. In return for
risking their capital by giving it to the company’s management to develop
business.
Securities:
financial contracts, grant the owner a stake in an asset.
Opportunity
cost: what you give up to get it.
Output:
whatever is produced by using the factors of production.
Marginal:
the difference made by one extra unit of something.
Outsourcing:
shifting activities used to be inside a firm to an outside company, which can
do them more cost-effectively.
Demand: the
amount of a good or service that people are both willing and able to buy.
Supply: the
amount of a good or service available at any particular price.
Monopoly:
when the production of a good or service with no close substitutes is carried
out by a single firm with the market power to decide the price of its output.
Monopsony:
a market dominated by a single buyer.
Perfect
competition: the most competitive imaginable.
Positive
economics: describes the world as it is.
Normative
economics: economics that tries to changes the world, by suggesting policies
for increasing economic welfare.
Liquidity:
how easily an asset can be spent.
Utility:
way of measuring pleasure or happiness and how it relates to the decisions that
people make.
Aggregate
demand: is the sum of all demand in an economy.
Aggregate
supply: is the total value of the goods and services produces in a country,
plus the value of imported goods less the value of exports.
Oligopsony:
the situation in which a few buyers are the only ones who buy a certain good.
Price: the
value of the goods or money that must be given up to acquire a good or service.
Commodity:
is a good that is generally a primary good used in manufacturing.
Disinflation:
occurs when the inflation rate is declining over time.
Auctions:
efficient way for a seller to set the price of its products.
Horizontal
integration: merging another film just like yours.
Vertical
integration: merging with another company at a different stage in the
production process.
Visible
trade: physical exports and imports.
Invisible
trade: exports and imports of things you cannot touch or see.
Inward
investment: investment from abroad.
Outward
investment: investing abroad.
