Economics terms and definitions

For the consumer, that point comes where marginal utility of a good, net of price, reaches zero, leaving no net gain from further consumption increases.

Social capital refers to the power of social networks to accomplish work. You can get fruits and vegetables to get vitamins and minerals.

However, it was known as "the Great Depression" until the s.

Economics: Key Terms and Definitions

A term for this is "constrained utility maximization" with income and wealth as the constraints on demand. Also, because the report's data is based on the previous month sales, it is a timely indicator. Traditional Economy — A traditional economy is based on agriculture.

This is because increasing output of one good requires transferring inputs to it from production of the other good, decreasing the latter. Even if one region has an absolute advantage as to the ratio of its outputs to inputs in every type of output, it may still specialize in the output in which it has a comparative advantage and thereby gain from trading with a region that lacks any absolute advantage but has a comparative advantage in producing something else.

Environmental scientist sampling water Some specialized fields of economics deal in market failure more than others. Policy options include regulations that reflect cost-benefit analysis or market solutions that change incentives, such as emission fees or redefinition of property rights.

These entities include private and public players with various classifications, typically operating under scarcity of tradable units and light government regulation. Ceded Premium - amount of premium fees used to purchase reinsurance. Such factors include capital accumulation, technological change and labour force growth.

Generally, sharp increases in employment indicate prosperous economic growth. Choices must be made between desirable yet mutually exclusive actions. Credit — Assumption Agreement - an insurance certificate issued on an existing insurance contract indicating that another insurer has assumed all of the risk under the contract from the ceding insurance company.

The PPF is a table or graph as at the right showing the different quantity combinations of the two goods producible with a given technology and total factor inputs, which limit feasible total output.


Supply and Demand Consider a good that is being sold in many places across a nation. Chartered Life Underwriter CLU - a professional designation awarded by the American College to persons in the life insurance field who pass a series of exams in insurance, investment, taxation, employee benefit plans, estate planning, accounting, management, and economics.

Frequently includes fire, allied lines, various other coverages e. General-equilibrium theory studies various markets and their behaviour. Individuals are typically broken down into subgroups, such as buyers, sellers and business owners. Bush lost the election to Bill Clinton because of the domestic malady marked by the depression and increasing urban decay.

Macroeconomists develop models explaining relationships between a variety of factors such as consumption, inflation, savings, investments, international trade and finance, national income and output. For this reason, the concepts of efficiency and productivity are held paramount by economists.

Depression (economics)

Knowing these definitions will help you out in course discussions, writing papers, and reading assigned texts. It involves how goods or services are produced, distributed, and managed within the society.

Economy Terms and Definitions

Coinsurance - A clause contained in most property insurance policies to encourage policy holders to carry a reasonable amount of insurance. Glossary of Insurance Terms. This page provides a glossary of insurance terms and definitions that are commonly used in the insurance business.

New terms will be added to the glossary over time. Economics Terms study guide by polkadottedturkey includes questions covering vocabulary, terms and more.

Quizlet flashcards, activities and games help you improve your grades. Practice geometric definitions with Khan Academy's free online exercises. Economics A-Z terms beginning with A. It gave birth to the definition of economics as the science of studying human behaviour as a relationship between ends and scarce means that have.

A brief introduction to some of the basic language of economics. This should be understandable even for those with nothing more than personal experience in the modern world. Go through the glossary of financial terms and know the meaning of all financial terms through their definitions here at The Economic Times.

Economics words Economics terms and definitions
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