Complete economics dictionary complete economics dictionary a abnormal profit the surplus of revenue over costs enjoyed by a monopoly that is in excess of profit the same firm could expect to earn if it faced competition for its market. A merger is an agreement that unites two existing companies into one new company. The laws that give government the power to block certain mergers, and even in some cases to break up large firms into smaller ones, are called antitrust laws. Rich glossary of economic terms to understand economics and. Risk represents an absence of or deviation from certainty probabil. Economic systemsexplain why societies develop economic systems, identify the basic features of different economic systems, and analyze the major features of the u.
A definition of the concept of economic effectiveness. Economics is the basis of our daily lives, even if we do not always realise it. Macroeconomicsstudy of the large economy as a whole or in its basic subdivisions national economic growth, government spending, inflation, unemployment, etc. A corporation is a form of business established as an independent legal entity, separate from the individuals who own it.
An economic cycle which results from cyclical changes in the attitudes of banks toward lending risk. This is the simplest yardstick of economic performance. Budget surplus this financial situation occurs if a government plans to spend more than it forecasts to earn in tax revenues over the financial year. Choose from 500 different sets of terms and concepts basic economic flashcards on quizlet. Study of small economic units such as individuals, firms, and industries competitive markets, labor markets, personal decision making, etc.
Economics the study of choice under conditions of scarcity. The methods of economics the art of building economic models assumptions and conclusions the fourstep process math, jargon, and other concerns. Financial terms and definitions page 3 the economic times. Key economic concepts in a growing hypertext of macroeconomics, microeconomics, management. How to study economics economics is the study of choice under conditions of scarcity. In terms of disadvantages, market economies do not do very well in terms of economic security. Select, organise interpret and use information from.
Utility, economic welfare, satisfaction, and sometimes happiness these terms are often used in economics in more. Theory of economic integration preferential trade agreements and the multilateral trade system. Choose an answer from the right column that goes with the proper flow. Kotarbinski defines economic rationality purel y in terms of a decision bein g economical and efficient. The group of individuals representing just a couple of percent of the population in advanced. As the cost of capital is inversely related to the asset price, a high asset price reduces the cost of capital and increases investment demand. An actual budget deficit occurs if actual public spending exceeds actual tax revenues. Learn economics concepts terms concepts with free interactive flashcards.
Terms and concepts used in conflict prevention, mitigation, and. Each includes a variety of possible group relations and pathways along which group relations might develop. Economicssocial science concerned with the efficient use of limited resources to achieve maximum satisfaction of economic wants. Aristotle, the greek philosopher termed economics as a science of household management. The one, economic growth, has essentially objec tive content.
Important economic terms and concepts absolute advantage. In other words, economists believed that the study of individual markets would. Definition and explanation of economics economics concepts. They also have historically produced more rapid economic growth than other kinds of economies. As new ideas are being discovered and the old theories are being revised, therefore, it is not possible to give a definition of economics which has a general acceptance. Learn terms and concepts basic economic with free interactive flashcards. This article throws light upon the seventeen economic terms and their basic concepts. Basic concepts of merger and acquisitions finance essay. Department of justice can allow the merger, prohibit it, or allow it if certain conditions are met. The ability of a country, individual, company or region to produce a good or service at a lower cost per unit than the cost at which any other entity produces that good or service.
They consist of material extracted from chapters 5 and 6 of the book pricing communication networks. A very im portant question in praxeology the theor y of effective. Productivityexplain the importance of productivity and. Apply knowledge and understanding using appropriate terms, concepts, theories and methods effectively to address problems and issues. A major benefit, for the owners, of this form of business is that it provides for limited liability for its owners.
Italicized terms within the definitions are themselves defined elsewhere in the glossary, for crossreference. It further looks into how human behaviour affects economic development. Fiscal policy refers to the policies framed by the government in order to regulate taxation and for allocation of budgets to various departments for their functioning. Income and substitution effects combine to cause the demand curve to slope. More credit means even stronger economic times, and so on. These are most commonly described as the creation of jobs and wealth, and the improvement of quality of life. Entities with absolute advantages can produce a product or service using a. This kind of economy also fares poorly in terms of economic efficiency. The glossary also includes broader economic concepts.
Merger, by mark kleinman, sky news, 9th january 2014. Demonstrate knowledge and understanding of the specified subject content. The english term economics is derived from the greek word oikonomia. Economic development reference guide what is economic development. But with the change of time and progress of civilization, the economic condition of. Rich glossary of economic terms to understand economics. Economics is growing very rapidly as the years pass. It implies an appraisal of economic performance in terms of criteria which. In common usage, the term statics connotes a position of rest or absence of movement. Absolute advantage this is the simplest yardstick of economic performance. Infact economics of education studies human behaviour in terms of human decisions, actions and reactions about schooling babalola, 2003.
Acquisitions as you can see, an acquisition may be only slightly different from a merger. Absolute poverty an economic condition of lacking both money and basic necessities needed to successfully live, such as food, water, education. When economic times are good, bankers become optimistic that their loans will be repaid, and hence they expand their lending. Because something is limited, we need to make decisions regarding how we use and allocate our resources. An economic system in which privatelyowned companies and businesses undertake most economic activity with the goal of generating private profit, and most work is performed by employed workers who are paid wages or salaries. Application of economic tools for economic analysis has become inevitable today. Before a large merger happens, the antitrust regulators at the ftc and the u. Basic economic terms used in india list of important concepts. Glossary of important business, economic, and financial history terms. Economics of education is the application of economic principles, concepts, laws to the process of education.
If one person, firm or country can produce more of something with the same amount of effort and resources, they have an absolute advantage over other producers. The five major types of mergers are conglomerate, congeneric, market extension, horizontal, and vertical. Basic economic terms used in india list of important. Oct 01, 20 below, i will list out some of the most basic economic terms used in india which will help you understand and interpret key economic indicators and the impact of monetary policy on the economy. Pearson edexcel level 3 advanced gce in economics a 9ec0. Since we are unable to have everything we desire, we must make choices on how we will use our resources. Scarcity is the condition in which our wants are greater than our limited resources. Typically economic development can be described in terms of objectives. The economic principle encompasses a wide variety of economic laws and theories that define or explain how an economy attempts to satisfy the unlimited demand in the marketplace with a finite. Complete economics dictionary complete economics dictionary. The community and economic development chain shows the links, causal relationships, and feedback loops between community and economic development, and illustrates how success in one facilitates success in the other. Glossary of economic terms administrative regulations. Character of economic growth charismatic authority. There are several types of mergers and also several reasons why companies complete mergers.
Pdf a definition of the concept of economic effectiveness. Markets and pricesanalyze the role of markets and prices in the u. Complete economics dictionary to earn in tax revenues over the financial year. Like scarcity, needs and wants, and junk like that basic econ concepts 2. The primary tools used by the government along with its agencies, to regulate the financial system can be classified as i fiscal and ii monetary policy tools. Two concepts, assimilation and pluralism, are at the core of the discussion.
A student of modern economic analysis frequently comes across the terms economic statics and economic dynamics. This book is a modest attempt to bring the various basic concepts of economics in a simple and clear fashion. Social class, also called class, a group of people within a society who possess the same socioeconomic status. Besides being important in social theory, the concept of class as a collection of individuals sharing similar economic circumstances has been widely used in censuses and in studies of social mobility. Finally, what causes the economy to grow over the long term. Easy introduction, clear definitions, indepth analysis, links to real data and simulation models to download.
The other, economic development, has essentially subjective content. Economics is the study of scarcity and choice scarcity means that there is a finite amount of a good or service basically they are limited. Chris rodrigo why economics is split into two realms. Wright, director of the thomas willing institute for the study of financial markets, institutions, and regulations and the nef family chair of political economy, augustana college sd this work is not ed. The application of economic tools and techniques not only reveals the pattern of economic variables but helps in arriving at optimum solution to the problem. Mergers and acquisition has been a very popular vehicle for growth and restructuring in the corporate world during the last couple of decades. When one company takes over another and clearly established itself as the new owner, the purchase is called an acquisition. Sep 20, 2010 economics of education is the application of economic principles, concepts, laws to the process of education.
Department of economics, school of business and management sciences. An understanding of economics isnt seen as being as vital as balancing a household budget or learning how to drive a car. Assessment objectives this economics specification requires candidates to. The tax terms are the same as those of a purchase merger.
From a legal point of view, the target company ceases to exist, the buyer swallows the business and the buyers stock continues to be traded. It relates to phenomena which can be defined and identified in terms of potentially measurable criteria. Glossary of important business, economic, and financial history terms by robert e. Whether it is an explanation of how firms work, or people vote, or customers buy, or governments subsidise, economists have examined evidence and produced theories which can be checked against practice. The annual economic survey and the annual budget list out these. Every science frames its concepts in unique terminology and develops its own vocabulary. A merger is the voluntary fusion of two companies on broadly equal terms into one new legal entity. However, economics has an impact on every moment of our lives because, at its heart, it is a study of choices and why and how we make them. Mergers are way for companies to expand their reach, expand into new segments, or gain market share. Basic economic concepts course notes costas courcoubetis abstract these notes are about basic concepts in economics that are needed in order to study issues of pricing information goods and telecommunication services. Go through the glossary of financial terms and know the meaning of all financial terms through their definitions here at the economic times. Absolute advantage the ability of a country or region to produce a good or service at a lower.