Some Economic Terms

Ad volorem:- value added(difference of output
and input) e.g. VAT 


loans given by financial institutions. 

Appreciation:- an increase in value of assets. Arbitrage:- it stands for short term profit like
e.g. sale of share.

The average cost 
Average propensity to consume(APC):- the

proportion of disposable income spent. APC=C/Y 

Amortization:- writing down the value of an

assets in a company books to reflect its loose of values through age and use. Called depreciation the u.k. 
Barter:- direct exchange of goods & services

without the use of money. 

Black economy:- uncounted, unrecorded

Backward integration:- occurs when a company

joins with a firm that is involved at an earlier stage of the production chain. 

Balance of trade:- the difference between the

value of visible imports. 
Black market:- created when business buyers

and sellers meet to negotiate the exchange of a prohibited or illegal goods. More generally any unofficial market in which prices are inordinately. 

Ball market:- period of rising share prices; an

optimistic state of affairs; the opposite of bear market. 
Buyers market:- more sellers but less buyers. 

Bretton wood system:- an arrangement of

fixed exchange rates which operated between 1945 to 1977 . 
Break-even:- when a firm s short-run total

revenue equals its short run total cost.

Average cost pricing:AC= TC/Q TC= external cost + internal cost Ceteris paribus:- all other influencing factors are remain constant. D-mat account:- dematilisation.

y Call option:- the right but not the obligation to

buy a security at a specified price at a specified date in the future.
y Call rates:- the interest rate of money loaned

overnight also known as the overnight rate. Widely used measure of money market rates. (for a day pay of interest) or (borrow money for only one day and paid interest only of that day.

y Closed economy:- an economy which doesn t

engage in international trade.
y Collusion:- agreements between firms to

restrict competition. 

Average cost pricing:- setting price equal to

the average cost. E.g. when assets sale on per unit cost means actual cost. 
Birth rate:- the number of live births per

thousand of the population in the year. 

Balance of payment:- statement of a country net

financial transaction with other countries. Current account measures balance of import and exports and payment and receipts for services such as shipping, banking, and tourism.

yBy yManoj singla yM.B.A. ym0923


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