Glossary of Economic Term (4)

Term	Description
Price Control	A form of government intervention in the economy in which a government agency uses its law-making power to regulate the prices at which otherwise voluntary private exchanges may take place.
Producer	An economic agent that converts inputs (factors of production) into output (goods and services) with the goal of maximizing profits from production and sale off those goods and services.
Profit	The excess of revenues over expenditures in a business transaction.
Resources	Anything that is available to an organization to help it achieves its purposes as people, raw materials and other things used to make goods and services, also known as inputs.
Savings	That part of disposable income (income less direct taxes plus state benefits) not spent on goods and services. Savings are therefore any income that is not spent, but put aside. In an economic sense we would also include buying shares or securities as part of this. Savings are a leakage or withdrawal from the circular flow.
Service	An intangible commodity in the form of a human effort, such as labor, skill or advise.
Share	An allotted portion owned by, contributed by, or due to someone; One of the definite number of equal parts into which the capital stock of a corporation or joint stock company is divided.
Subsistence Economy	An economy in which production meets a population’s minimum needs but produces no surplus.
Substitute Products	One of two goods or services that replace each other in either demand or supply terms. If price of A goods increases, demand for B goods increases (in the terms of demand). If price of A goods increases, supply of B good decreases (in the terms of production).
Supply	The amount of goods produced or available at a given price.
Surplus	Production of goods and services beyond the minimum needed to sustain life.
Tax	A government charge that is not a price for a good or service; A compulsory transfer of money (or occasionally of goods or services) from private individuals, institutions or groups to the state.
Trade Barrier	Any impediment to the international movement of goods, services, capital, or other factors of production. Mostly administrated in the form of tariff and quota.
Trademark	An identifiable mark on a product that may be a symbol, words, or both, that connects the product to the trader or producer of that product.
Transaction	The act or an instance of conducting business or other dealings; the exchange of money, goods, or services through buying, selling, or exchange.
Unemployment	A situation which exists when members of the labor force wish to work at the prevailing wage or salary rates for their skills, but cannot get a job. The concept thus refers to "involuntary" unemployment only, rather than the voluntary decision of someone to choose leisure (or productive activity outside the cash economy such as housewifery) rather than gainful employment at prevailing rates of pay.
World Bank	A group of five closely associated international institutions providing loans and other development assistance to developing countries. The five institutions are IBRD (International Bank for Reconstruction and Development), IDA (International Development Association), IFC (International Finance Corporation), MIGA (Multilateral Investment Guarantee Agency), and ICSID (International Centre for Settlement of Investment Dispute). As of July 2000, the largest of these, IBRD, had 181 member countries.

An Economic Theorist's Book of Tales

Glossary of Economic Term (3)

Term	Description
Import	A product brought into a country from a foreign country where it originated.
Income	The money or other form of payment that one receives, usually periodically, from employment, business, investments, royalties, gifts and the like.
Inflation	A general increase in prices coinciding with a fall in the real value of money.
Interest	The annual earnings that are sacrificed when wealth is invested in a given asset or business. The interest sacrificed by investing in a given business is often
Interest Rate	The amount of interest charged for borrowing a particular sum of money over a specified period of time.
Investment	The spending money on stocks, shares and other securities, or on assets such as plant and machinery.
Labour Market	The market that determines wages and the number of jobs based on the supply and demand for workers.
Liquidation	The process of ending a company’s operation by means of closing out the company. The process is initiated by the creditors because of the company is considered bankrupt.
Loss	A decrease in value; the amount by which a thing’s original cost exceeded its later selling price
Macroeconomics	The branch of economic that usually refers to economic issues that concern the performance of the economy on a national scale.
Market	A place of commercial activity in which goods or services are bought and sold; A geographic area or demographic segment considered as a place of demand for particular goods and services; The opportunity for buying and selling goods or services; the extend of economic demand; A securities or commodities exchanges; The business of such an exchange; the enterprise of buying and selling securities and commodities.
Microeconomics	Deals with the economic activity of individuals or small groups.
Money	The medium of exchange authorized or adopted by a government as of its currency (coin and currency are money).
Monopoly	A market structure where only one company exist in given industry. Economists consider monopolies as a market failure because the lack of competition allows monopolies to raise their prices, lower their product quality, slow down innovations and otherwise exploit customers.
Non Renewable Resources	Resources that cannot be replaced once they have been used. Aluminum and natural gas are non-renewable.
Open Economy	An economy that is actively engaged in international trade.
Opportunity Cost	The cost of a resource, measured by the value of the next-best, alternative use of that resource.
Over Consumption	A situation in which some people consume resources at levels beyond their needs, often at the expense of those who can’t meet their basic needs.
Poverty	The condition of being indigent; the scarcity of means of subsistence. Causes of poverty include unemployment, a lack of economic resources such as land ownership, and social factors including discrimination.
Price	The amount of money or other consideration asked for or given in exchange for something else; the cost at which something is bought or sold.
Price Ceiling	The highest price at which a buyer is willing to buy; The highest price allowed by a government agency or by some other regulatory institution.

An Economic Theorist's Book of Tales

Glossary of Economic Term (2)

Term	Description
Debit	A sum charge as doe or owing. Debit refers to borrowed funds and generally secured by collateral or a co-signer.
Deficit	The amount each year by which government spending is greater than government income; A deficiency or disadvantages; a deficiency in the amount or quality of something.
Deflation	A general decline in national income and output.
Demand	In economic, the intensity of buyer on the availability and cost of a commodity or service.
Dependent Population	One who relies on another for support; one no able to exist or sustain oneself without the power or aid of someone else.
Discount	A reduced price. Discounts are used to quickly reduce supplies on –hand, attract new buyers and reward past buyers.
Distributor	Person or business that supports the movement of goods between producers and consumers. Truck drivers, retailers, and wholesalers are examples.
Economic Growth	An increase in the production levels of goods and services. Steady growth in the productive capacity of the economy.
Economics	The social science dealing wit the production, distribution, and consumption of goods and services.
Employment	The use of work force as input factor in goods and services production.
European Union	An association of European nations, with the purpose of achieving full economic unity (and eventual political union) by agreeing to eliminated barriers to the free movement of capital, goods and labor among the member nations.
Exchange Rate	The ratio for converting one countries money into another country’s money.
Export	Goods, services and capital assets sold abroad.
Fee	Payment made to an agent of a professional individual or company such as an accountant gives serve to its client.
Fiscal Policy	The federal government’s decisions about the amount of money it spends and collects in taxes to achieve a full employment and non inflationary economy.
Foreign Investment	Overseas investment into a country by multinational enterprises owned by foreigners or nationals living abroad.
Free Market	A market in which there are no regulations as to what can be bought, sold, or traded except by the country’s competition policy, therefore nothing to ensure the well-being of all peoples and the environment.
Goods	A product that can be produced, bought, and sold, and that has a physical identity. This contrasts with Service. Trade in goods is much easier to measure than trade in services, and thus much more thoroughly documented and analyzed.
Gross Domestic Product (GDP)	The total value of nation’s output, income, or expenditure produced within a nation’s physical border.
Gross National Product (GNP)	A country’s total output of goods and services from all forms of economic activity measured at market prices for a calendar year.
Household	A basic economic unit in which one or more people choose to live together and share resources. The household purchases goods and services from the producer and in the other hand provides (sell or rent) factor inputs to the producer for the production of goods.

Economic Report of the President 2010

Glossary of Economic Term

Term	Description
Accounting	The act or a system of establishing or setting financial accounts; especially the process of recording transaction in the financial records of a business and periodically extracting, sorting, and summarizing the recorded transaction to produce a set of financial records.
Asian Development Bank (ADB)	A multilateral institution based in Manila, Philippines, that provides financing for development needs in countries of the Asia-Pacific region. As of July 2000, ADB had 58 member countries
Asia-Pacific Economic Cooperation (APEC)	APEC Founded in 1989. It is a regional institutional arrangement among member countries linked by Pacific Ocean trade. APEC’s long term goal is free and open trade and investment in the Asia Pacific region.
Bank	A financial establishment which uses money deposited by customers for investment, pays it out when required, makes loan at interest, exchanges currency, etc.
Barter Economy	An economic model of international trade in which goods are exchanged for goods without the existence of money or any other similar unit of account or medium of exchange.
Bilateral Trade	The trade between two countries; that is, the value or quantity of one country's exports to the other, or the sum of exports and imports between them.
Black Market	A Market in which certain goods or services are routinely traded in a manner contrary to the laws or regulations of the government in power because substantial numbers of buyers and sellers desire to evade restrictive government price control to avoid paying heavy taxes on the good or service in question, or simply to be able to obtain forbidden goods or services that the government does not want the people to have at all.
Bond	Securities issued by a third person to the other to undertake his/her obligations, exercise his/her roles and responsibilities, when the concerned person fails to do so.
Business	A commercial enterprise carried on for profit; a particular occupation or employment habitually engaged in for livelihood or gain.
Capital	Money or assets invested or available for investment in a business.
Cash	Money or its equivalent; Currency or coins, negotiable checks, and balances in bank accounts.
Cash Flow	The movement of cash through a business, as a measure of profitability or liquidity; The cash generated from a business or transaction.
Check	A draft signed bay the maker or drawer, drawn on a bank, payable on demand, and unlimited in negotiability.
Closed Economy	An economy which does not engage in international trade.
Commission	A fee paid to an agent or employee for his service in facilitating a particular transaction, usually as a percentage of the money received from the transaction.
Compound Interest	Interest charged over loan where not only based on the principle amount but also on the amount of loan added with the previous interest cumulatively.
Consumer	A person who buys goods or services for personal, family or household use, with no intention of resale.
Consumption	The act of destroying thing by using it; the use of a thing in a way that thereby exhausted.
Cooperative	An organization formed for the purpose of producing or marketing goods or products owned collectively by members who share in the benefit.
Cost-Benefit Analysis	Evaluating projects, policies, and programs in terms of economic costs and benefits.
Credit	One’s ability to borrow money; the faith in one’s ability to pay debts. The time that a seller gives the buyer to make the payment that is due. Creditor is one to whom a debt is owed; one who gives credit for money or goods.

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