Economics/Glossary

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A

Adverse selection [r]: a partial market failure that occurs when there are traders who take advantage of asymmetric information, raising uncertainty and leading to a reduction in the value of its products. ^[e]
Agency cost [r]: Add brief definition or description
Applied statistics [r]: the practice of collecting and interpreting numerical observations for the purpose of generating information. ^[e]
Arbitrage [r]: transactions to take advantage of a price differences of a product in different markets by buying where it is cheap and selling where it is dear. The possibility of arbitrage often prevents the occurrence of price differences. ^[e]
Asset price bubble [r]: The condition of an asset market in which price is governed by speculators' expectations that it will increase. ^[e]
Asymmetric shock [r]: Add brief definition or description
Austrian School of economics [r]: A school of economists who reject the tenets of macroeconomics and oppose the practice of collective economic management; and whose methodology concentrates upon the decisions of individuals and the operation of the market mechanism. ^[e]

B

Balassa-Samuelson effect [r]: A tendency for productivity increases in the traded sector to lead to a rise in the relative price of nontradables. ^[e]
Basis point [r]: (bp) one hundredth of a percentage point . ^[e]
Beveridge curve [r]: A curve (convex when viewed from the origin) showing a relationship between vacancies and unemployment. ^[e]
Bubble (economics) [r]: A surge in prices that raises expectations of further increases, so generating further increases: a process that continues until confidence falters, the bubble "bursts" and prices rapidly revert to an objectively-based level. ^[e]
Budget balance [r]: the difference between a central government's revenue and its expenditure in a given financial year. Conventions differ concerning the items that are included, and various cyclical adjustments can be made to identify its discretionary element.. ^[e]
Budget deficit [r]: the excess of a government's expenditures over its receipts. See also cyclically-adjusted budget deficit ^[e]

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C

Classical unemployment [r]: Unemployment that results from setting the wage rate at a level at which the demand for labour falls short of its supply. ^[e]
Competition [r]: The activity or condition of competing against others. Ecologically, the interaction between species or organisms which share a limited environmental resource. ^[e]
Complex interactive system [r]: A system in which an event in one of its components can have significant repercussions in many other components; and which can exist in more states than can be enumerated - including "open systems" whose operation is affected by events that have been generated from outside (such as international trade in the case of an economic system). ^[e]
Concentration ratio [r]: A ratio that shows the extent to which a market is dominated by a small group of suppliers. An example is the 5-firm concentration ratio, which is the percentage of total sales of a product that is supplied by the five largest suppliers. An alternative measure is the Herfindahl Index ^[e]
Consequentialism [r]: The belief that the expected consequences of decisions should be the sole criterion of decision-making (in contrast to deontology). ^[e]
Consumer's surplus [r]: The excess of the amount that a consumer would be willing to pay for a product over its market price, changes in the value of which are usually estimated according to the rule of one-half. ^[e]
Consumption function [r]: Add brief definition or description
Contingent employment [r]: Add brief definition or description
Corporation [r]: Add brief definition or description
Covariance [r]: Add brief definition or description
Creative destruction [r]: Add brief definition or description
Cross elasticity of demand [r]: Add brief definition or description
Cyclically-adjusted budget deficit [r]: Add brief definition or description
Cyclical deficit [r]: Add brief definition or description

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Economics/Glossary

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