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❶Is unemployment an important economic term? In economics, the term business sector is the portion of the economy made up by the companies.

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Current assets are the things that can easily be turned into cash and are expected to be sold or used up in the near future. Bear market In a bear market, prices are falling and investors, anticipating losses, tend to sell. This can create a self-sustaining downward spiral.

Bond A debt security - or more simply an IOU. The bond states when a loan must be repaid and what interest the borrower issuer must pay to the holder. Banks and investors buy and trade bonds. Bubble A description of rapidly rising equity prices, usually in a particular sector for example, housing, technology , that some investors feel is unfounded. The term is used because, like a bubble, the prices will reach a point at which they pop and collapse violently.

Bull market A bull market is one in which prices are generally rising and investor confidence is high. Capital The wealth - cash or other assets - used to fuel the creation of more wealth. Within companies, often characterized as working capital or fixed capital. Chapter 11 The term for bankruptcy protection in the US. It postpones a company's obligations to its creditors, giving it time to reorganise its debts or sell parts of the business, for example.

Collateralized debt obligations CDOs A collateralised debt obligation is a financial structure that groups individual loans, bonds or assets in a portfolio, which can then be traded. In theory, CDOs attract a stronger credit rating than individual assets due to the risk being more diversified.

But as the performance of some assets has fallen, the value of many CDOs have also been reduced. Commercial paper Unsecured, short-term loans issued by companies. The funds are typically used for working capital, rather than fixed assets such as a new building.

Commodities Commodities are products that, in their basic form, are all the same so it makes little difference from whom you buy them. That means that they have a market price. You would be unlikely to pay more for iron ore from a particular mine, for example. Credit crunch The situation created when banks hugely reduced their lending to each other because they were uncertain about how much money they had.

This in turn resulted in more expensive loans and mortgages for ordinary people. Credit default swap A swap designed to transfer credit risk. The buyer of the swap makes periodic payments to the seller in return for protection in the event of a default. A bank which owns a lot of mortgage debt could swap it, but would have to make a pay-out if those mortgages were not repaid.

Derivatives Derivatives are a way of investing in a particular product or security without having to own it. The value can depend on anything from the price of coffee to interest rates or what the weather is like. Derivatives can be used as insurance to limit the risk of a particular investment.

Credit derivatives are based on the risk of borrowers defaulting on their loans, such as mortgages. Equity In a business, equity is how much all of the shares put together are worth. In a house, your equity is the amount your house is worth minus the amount of mortgage debt that is outstanding on it.

Fundamentals Fundamentals determine a company, currency or security's value. A company's fundamentals include its assets, debt, revenue, earnings and growth.

Futures A futures contract is an agreement to buy or sell a commodity at a predetermined date and price. It could be used to hedge or to speculate on the price of the commodity. Hedge fund A private investment fund with a large, unregulated pool of capital and very experienced investors.

Hedge funds use a range of sophisticated strategies to maximize returns - including hedging, leveraging and derivatives trading. Hedging Making an investment to reduce the risk of price fluctuations to the value of an asset. For example, if you owned a stock and then sold a futures contract agreeing to sell your stock on a particular date at a set price.

A fall in price would not harm you - but nor would you benefit from any rise. Investment bank Investment banks provide financial services for governments, companies or extremely rich individuals. They differ from commercial banks where you have your savings or your mortgage.

Leveraging Leveraging means using debt to supplement investment. The more you borrow on top of the funds or equity you already have, the more highly leveraged you are. Leveraging can maximise both gains and losses. Deleveraging means reducing the amount you are borrowing.

The rate at which banks lend money to each other. Limited liability Confines an investor's loss in a business to the amount of capital they invested. Liquidity The liquidity of something is how easy it is to convert it into cash.

Your current account, for example, is more liquid than your house. If you needed to sell your house quickly to pay bills you would have drop the price substantially to get a sale. What is economic standing in terms of business? Economic standing refers to the amount of assets and finances thata business has. Economic standing may be good or bad depending oncertain issues.

What does economics mean? There is no "exact" definition for economics but if I had to give adefinition I would say this. Ecomonics- The scientific study of howindividuals and groups make decisions with limited resources as tobest satisfy their incentives. Second answer The definition I was taught is that "economics is the study andinvestigation of the systems by which societies allocate scarcecommodities among alternative uses".

What does economic mean? What is meant by the term socio-economic? What is the definition of globalization in economic terms? The positive results and advantages in industrialization are that it relived pressure and also helped ease the pressure on certain problems. What is meant by the term socio-economic issues? The term socioeconomic issues refers to social issues that effectan individual's economic and social standing. Poverty for exampleis a major socio-economic issue.

What does economize mean? The word economize means to reduce the amount your spending. Setting up a budget is an excellent way to economize. What do the economic terms oligopoly and monopoly mean? Monopoly means an absolute power to produce and sell a product which has no close substitution.. Oligopoly means a few sellers sell differentiated or homogeneous products. What is Accelerator in term of managerial economics?

Accelerator comes from the Principle of Acceleration. A company manufactures pieces of cloth with a textile Manufacturing Equipment. The demand for the textile good is So the firm's investment is much higher than the demand. Suppose the demand increases to pieces. The company can produce only with existing machinery. It will still continue to provide the existing pieces output without investing in additional machinery Reason: The investment will be a huge expense against this differential.

But when the demand reaches, or , the company may plan to invest in a new machinery. The differential is higher. Thus acceleration in aggregate demand leads to acceleration in the rate of Investment. This is a concept of Macro Economics. What is the meaning of the term economic spectrum? Economic Spectrum is the economic wealth distribution amongst class, helping to distinguish the different economic standings of individuals classes.

What is meant by the term socio economic? The term socioeconomic refers to how economic and social activitiesaffect one another. Many disciplines such as ethics and socialphilosophy fall under this umbrella. What is mean by economics? What are resources in terms of economics?

How would you define the term 'economic growth'? Economic growth is an increase in production levels of goods and services within a country. To measure and distinguish weather or not a country is growing, we need to observe the total amount of goods and services being produced in the country at the time, the real gross domestic product GDP , and compare it to changes from one year to the next as a percentage.

Common factors associated with economic growth are increases in capital stock, advances in technology, and improvement in the quality and level of literacy are considered to be the principal causes of economic growth.

How do you define the term 'economics'? Economics is the social science that studies the management of scarce resources such as land, labor, and capital to produce, distribute, and sell tangible objects or to provide services in order to satisfy apparently unlimited human wants. Define triangular manufacturing in terms of economics? These goods are then shipped directly to buyers and the triangle is completed. Motives for subcontracting out is to incur a lower marginal cost of labour, especially relevant in East Asian Countries where there are upward pressures on wage rises amongst specialized division of labour.

Outsourcing allows middleman to generate surplus value without incurring sunk costs of capital or their own factories. In economics terms what does market mean? In economics terms, the word market means a group of sellers andbuyers. The buyer determines the demand while the sellers determinethe supply. What is social capital in economics terms? Economists speak of the different types of resources that can be utilized in the production of a good or service. These resources also known as factors of production can be put into four broad categories these are land, labor, capital and entrepreneurship.

Capital is defined as buildings, equipment, and other assets that assist in the production of goods or services. Economists classify capital in terms of physical capital, human capital, and social capital.

Physical capital consists of tangible items used to produce goods and services. Human capital consists of the education and training of the individuals in the production of goods and services. Social capital consists of the social connections, norms of behavior and trust between individuals that assists in the production of goods and services.

What does the term mutually beneficial economic partnership mean? A mutually beneficial economic partnership is where both the buyer and the seller benefit from the exchange of goods or money for goods without being exploited: The seller offers their goods or service at a reasonable price without attempting to maximize profit while the buyer responds in kind by not attempting to undercut the Seller and make him lose profit.

What are the substitutes in terms economics? For example, American cars and Japanese cars could be considered substitutes for one another. If the price of Japanese cars increases, the demand for American cars would increase because people want to spend less money. If the price of Japanese cars decreased, the demand for American cars would decrease because people would want to purchase the less expensive one. What is the economic term meaning everything else remains the same?

Ceteris Paribus It is the Latin phrase which means: Or in economics, "all other factors held constant". Self-reliance in economic terms? An economically self-reliable person is one who usually needs little or no government assistance in monetary affairs. Politically, these people are usually more Libertarian, defined basically as supporters of smaller government. What is GDP in economic term?

Market measure of new and final goods and services within a country in a period of time. Stagfation was an economic term referring to? Stagflation was an economic condition in which unemployment was high, the economy was stagnant, but prices were rising inflation. Define the term Economic growth? Economic growth can be further split into Actual growth and potential growth. Actual growth is the increase in the GDP of the economy represented by the rightward shift of the Aggregate Demand.

Potential growth is the increase in the productive capacity or the maximum possible output of an economy. In economic term what does transparency mean? In economics, a market is transparent if much is known by many about what products, services or capital assets are available, what price and where is the location.

There are about two types of price transparency: The two types of price transparency have different implications for differential pricing. This is a special case of the topic at transparency humanities.

A high degree of market transparency can result in disintermediation due to the buyer's increased knowledge of supply pricing. Transparency is important since it is one of the theoretical conditions required for a free market to be efficient. Is the term 'Domino Theory' a political or economic term? This was a political term and referred to democratic governments falling like dominoes to Communist influence.

What does a market mean in economic terms? What is mean by term socio-economic issues explain by referring to three example of such issues? The socio-economic issues are the problems that socioeconomicstackles and the factors that have negative influence on theindividuals' economic activity.

Such issues are lack of education,crime. What is the economic term that means the amount that consumers will purchase or consume at a specific price? Demand is the willingness of consumers to purchase a specificamount of a product at different prices.

Is unemployment an important economic term? Absolutely, unemployment plays a critical role in national economics. It affects the economy as much, or more, than any other element in the economic formulae.

What does the term demand refer to in economics? The term demand in economics refers to the total amount of demand at all possible prices. Demand's definition is how much the consumers want a product.

What is the significance of wildlife sanctuaries in economic terms? What is the meaning of the term laissez-faire economics? Centered on the belief termed invisible hand by the 18th century Scottish economist Adam Smith that human beings are naturally motivated by self-interest and, when they are not interfered-with in their economic activities, a balanced system of production and exchange based on mutual benefit emerges What does the term 'transaction cost' mean in relation to economics?

The transaction cost means the price you pay for a certain item or service. This is the money that is transferred between customer and service provider. What does the term marginal cost mean in the field of economics?

Marginal cost in economics means the cost that is not particularly big considering the other costs or investments that are required. It is used to state the cost and then make a very small allowance for it is required for accounting reasons.

What does the term glass ceiling mean in economics? In economics, the glass ceiling suggests that there is a limit to how far you can go on the corporate latter. For instance, there is a good chance that an individual that has just started working for a company may not receive the role of a manager until they've been with the company for quite some time.

In economics what is the meaning of the term 'demand curve'? In economics, the demand curve is a mathematical function which related the relative demand of a product to some factor, usually price. The curve is often plotted against the supply curve, so that the values of the demand curve, the actual demand at a certain price, can be meaningfully compared to the supply at that same price.

In economic terms what is internalization? Internalization, in terms of economics, is a term to describe the practice of multinational enterprises to execute transactions within their own organisation.

This is as opposed to an outside market. What are the characteristics of goods of ostentation in terms of economics?


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