Key Terms And Their Meanings Part I
- Absenteeism: Employees failing to complete the agreed number of hours of work for reasons apart from sickness or other approved absence.
- Actuary: A person who assesses risks for insurance purposes. Actuaries are employed by insurance companies to calculate premiums and by government and some large industrial companies.
- Administered price: A price that is not determined by competitive market forces, but by the conscious act of an administrative body, such as the government, a marketing board, or a trading group.
- Ad Valorem: Describing a type of indirect taxation in which goods are taxed by their value. The tax is calculated as a proportion of the price of the goods or the cost of their production. Amalgamation: The merger of two or more companies into a larger organization.
- Amortization: 1. Depreciation of an asset in stages over a period of time in accounting. 2. Payment of a debt in stages over a period. Autarchy: A system of self-sufficiency; i.e. one in which a country attempts to satisfy the needs of the population from its own production without imports.
- Balanced Budget: The state of a government’s budget when its total revenue (from taxes, customs duties, etc.) exactly equals total expenditure.
- Bankruptcy: The state of a person who is unable to pay debts and has been judged insolvent by a court. The term is generally applied to individuals.
- Beggar-My-Neighbour Policy: An economic policy designed to increase domestic income and employment by measures that have adverse effects on other countries. Such measures include unnecessary currency devaluation and the application of tariffs, import quotas, and export subsidies. or g
- Black Economy: Illegal economic activity that is found in all economies. Because it is illegal is unreported in the surveys on which official statistics about the economic activity are based.
- Black Market: Transactions in goods and services that violate controls on price or supply imposed by the government or producer. Blue-Collar Worker: A person engaged in a manual job, especially one in a factory.
- Bretton Woods Conference: A conference held in 1994 at Bretton Woods, New Hampshire, USA. Attended by 44 nations, it was the starting point of a new order in international monetary affairs, attempting to learn from the lessons of the interwar years. The International Monetary Fund and the International Bank for Reconstruction and Development were both created as a result of the conference.
- Buffer Stocks: Stocks of commodities that are built up and used to even out extreme changes in market prices. A ceiling price is fixed and, if the price in the market threatens to go above it, then stocks are released onto the market from the stockpile to increase supply and bring down the price. At the other extreme, if the price threatens to drop below a floor price that has. been fixed, then quantities of the commodity are bought into the stock to increase demand and raise the price.
- Bull: A speculator on the stock exchange or on a commodity market who buys shares or commodities in the anticipation of rising prices so that they can later be resold at a profit.
- Bullions: Gold, silver, and other precious metals cast in the form of ingots or bars as opposed to coin. Gold bullion forms partial backing for many of the world’s currencies and is used in international monetary transactions between central bans.
- Cal Money: Money in the form of loans and advances, payable on demand or within a specified number of days. The term is most commonly used to describe advances to stockbrokers and stock jobbers and loans to the bill market. Loans are repayable within 14 days in the case of the stock exchange, and within 7 days on the bill market.
Check out Economic development notes in detail.
- Capital Gain: A gain occurs when a capital asset is sold for a higher price than that paid for it. Assets may comprise shares, property, etc.
- Capital-Gains Tax: A tax on the gain obtained when a capital asset is sold for a price higher than that paid for it. Capitalism: A System of economic Organisation in which individuals own buy and sell means of Production (except labour). An important aspect of capitalism is the ability of individuals to trade on their own account independently of the state.
- Cartel: A situation where a group of organisations act in unison to gain the advantages of monopoly power. The usual aim of the cartel is to raise prices and hence profit margins, and the way that this is achieved is by cutting production. This involves the members being given production quotas. An example of a cartel is the Organisation of Petroleum Exporting Countries (OPEC), which is designed to regulate international trade in petroleum.
- Census:- A statistical exercise to gather information in which every member of the population being considered is questioned.
- Central Bank: An institution that acts as a banker to the government and the banking system as a whole.
- Clearing Bank: A term often used to describe commercial banks or joint-stock banks.
- Clearing House: An institution whose prime function is to settle debts between the clearing banks. Cheques that are paid to branches of the clearing banks throughout the country are sent to the clearinghouse where they are sorted according to which bank they are drawn upon.
Here are the notes for Key Terms And Their Meanings Part II.