ECONOMICS

TERMS
RAMIRO GALLARDO VELÁZQUEZ A01375916
STOCKS

• It is another word for inventories of goods held by a

firm to meet future demand.
• Samsung stocks decreased 20% last year.
EUROPEAN
CENTRAL BANK

• Is responsible since January

1999 for setting the official
short-term INTEREST
RATE in countries using
the EURO as their domestic
currency.
• The EBC emited a loan to
Greek to prevent a crisis
again.
 STAGFL ATION
THE TWIN ECONOMIC PROBLEMS OF STAGNATION AND RISING INFLATION.
PROBABLY VENEZUELA IS GOING TO BE IN STAGFLATION.
B A NK R UPT CY

• When a court judges that a

debtor is unable to make the
payments owed to a creditor.
How bankrupts are treated can
affect economic growth.
• Comercial Mexicana bankrupt
because they sell finantial
instruments.
BIG MAC INDEX

It was devised by Pam Woodall of The Economist in 1986, as a light-hearted guide to whether
currencies are at their "correct" level. It is based on one of the oldest concepts in international
economics, purchasing power parity
• The new big mac index reveal an general increase in the Price.
D E F L AT I O N

• Is a persistent fall in the general

price level of goods
and SERVICES. It is not to be
confused with a decline in
prices in one economic sector
or with a fall in
the INFLATION rate.
DEPRECIATION
A FALL IN THE VALUE OF AN ASSET OR A CURRENCY; THE OPPOSITE
OF APPRECIATION
MEXICAN MONEY PRESENT TODAY AN DEPRECIATION IN 15% FRONT USD.
 RECESSION
A PERIOD OF SLOW OR NEGATIVE ECONOMIC GROWTH, USUALLY ACCOMPANIED BY
RISING UNEMPLOYMENT.
MEXICAN PIB GREW UP ONLY 0.01%, SO CLOSE TO STAY IN RECESSION.
NORMAL GOODS

• When average INCOME increases,

the DEMAND for normal goods
increases, too. The opposite
of INFERIOR GOODS.
• If I have more money I’ll go to buy
more videogames.
 FINANCIAL
INSTRUMENT
C E R T I F I C AT E O F O W N E R S H I P O F A
F I N A N C I A L A S S E T, S U C H A S A B O N D O R
A SHARE.
I B O U G H T F O R T H E C O M PA N Y S O M E
F O R W A R D S T H AT A R E F I N A N C I A L
INSTRUMENTS
FISCAL POLICY

• It comprises public spending and taxation,

and any other government income or
assistance to the private sector.
• Mexico proposed a strong fiscal policy to
improve the infraestructura.
EL ASTICIT Y
MEASURE OF THE RESPONSIVENESS OF
O N E VA R I A B L E TO C H A N G E S I N A N OT H E R .
COMMODITY

• A comparatively homogeneous
product that can typically be
bought in bulk. It usually refers
to a raw material - oil, cotton,
cocoa, silver - but can also
describe a manufactured
product used to make other
things, for example, microchips
used in personal computers.
• My family sell commodities.
IMPORTS

• Purchases of foreign goods and SERVICES

• I imported my chinese phone
INFRASTRUCTURE

• The economic arteries and veins. Roads, ports, railways, airports, power lines, pipes and wires
that enable people, goods, commodities, water, energy and INFORMATION to move about
efficiently. Increasingly, infrastructure is regarded as a crucial source of
economic COMPETITIVENESS.
• China is improving the I. T infraestucture of Asia.
INVEST M ENT

• Putting MONEY to work, in the

hope of making even more
money. Investment takes two
main forms: direct spending on
buildings, machinery and so
forth, and indirect spending on
financial SECURITIES, such
as BONDS and SHARES.
• Google invest in a quantic
computer.
LIQUIDITY

• The liquidity of other assets is usually less; how much

less may be measured by the ease with which they can
be exchanged for cash (that is, liquidated).
• Pepsi has a lot of liquidity now.
 TA X EVASSION
PAY I N G L E S S TA X T H A N Y O U A R E L E G A L LY O B L I G E D T O
C O C A C O L A E V A D E D TA X E S D O I N G S O C I A L C A M PA I N G S
U N E M P LO Y M E N T

• The number of people of

working age without a job is
usually expressed as an
unemployment rate, a
percentage of the workforce.
This rate generally rises and falls
in step with the BUSINESS
CYCLE.
• I’m unemployed.
PPP

• A method for calculating the

correct value of a currency,
which may differ from its
current market value. It is
helpful when comparing living
standards in different countries,
as it indicates the
appropriate EXCHANGE
RATE to use when expressing
incomes and PRICES in different
countries in a common
currency.