GLOSSAR1
.DOCprice-ring a group of traders acting illegally to control certain prices.
price system economic system in which resources are allocated as a result of the interaction of the forces of supply and demand.
price tag 1 the label on an item showing its price. 2 the cost of an enterprise or undertaking.
private capital is usually owned by individuals and private business organizations.
private company Brit. a company with restricted membership and no issue of shares.
private cost of production is the cost to the individual or business that created the cost.
private enterprise business unit where economic activities are in private hands and are carried on for private profit, as opposed to national, municipal, or cooperative ownership.
private means income from investments etc., apart from earned income.
private sector the part of the economy that is owned and controlled by private individuals and business organizations such as private and public limited companies.
privatization policy or process of selling or transferring state-owned or public assets and services (notably nationalized industries) to private investors.
producer a person who produces goods or commodities.
product 1 a thing or substance produced by natural process or manufacture. 2 the good or service one receives in an exchange.
product differentiation making one good different from another. Branding is an example of product differentiation. Firms attempt to differentiate their product in order to gain customer loyalty and secure an advantage over their competitors.
production the process of making a good or service.
productivity a measure of productive efficiency calculated as the ratio of what is produced to what is required to produce it.
profit amount by which total revenue exceeds total cost. It is the reward for risk-taking for shareholders in a business organization.
profit and loss account in a set of accounts, the account which compares all revenues and all costs of a business organization in order to arrive at a figure for net profit (or loss).
profit margin the profit remaining in a business after costs have been deducted.
profit-sharing the sharing of profits esp. between employer and employees.
progressive tax tax such that the higher the income of the taxpayer the greater the proportion or percentage paid in that tax.
property anything legally owned or possessed by a person or organization.
proportional tax tax such that the proportion or percentage paid in tax remains constant as income of the taxpayer changes.
property tax a tax levied directly on property.
proprietor (fem. proprietress) 1 a holder of property. 2 the owner of a business etc.
public sector part of the economy that is owned and controlled by the state, namely central government, local government, and government enterprises.
purchase tax Brit. a tax on goods bought, levied at higher rates for non-essential or luxury goods.
purchasing power the value of a unit of money measured in terms of what it can buy.
pure competition a market situation in which there are many independent and well-informed buyers and sellers of exactly the same economic products.
rate of interest total interest paid divided by the sum borrowed or saved expressed as a percentage over a period of time, usually one year.
real value or constant value value of goods and services adjusted for inflation.
recession a fall in business activity lasting more than a few months, causing stagnation in a country’s output.
regressive tax tax such that the higher the income of the taxpayer the smaller the proportion or percentage paid in that tax.
rent 1 the reward paid to owners of land is rent. 2 payment for the use of a service, equipment, etc.
revenue money received from taxes or the sale of a product.
risk capital money put up for speculative business investment.
salary pay, usually of nonmanual workers, often expressed in annual terms.
sale 1 the exchange of a commodity for money etc.; an act or instance of selling. 2 the amount sold. 3 the rapid disposal of goods at reduced prices for a period esp. at the end of a season etc. 4 a an event at which goods are sold. b a public auction.
sales revenue money received from the sale of products.
sales tax a tax on sales or on the receipts from sales.
savings account in banking, an account where interest is given for money deposited.
scarcity insufficient availability of resources to satisfy wants.
security in finance, assets that may be sold if a borrower defaults on a loan.
self-sufficient needing nothing; independent.
self-supporting 1 capable of maintaining oneself or itself financially. 2 staying up or standing without external aid.
service intangible item of value, such as the work of physicians, lawyers, actors or mechanics.
service industry sector of the economy that supplies services such as retailing, banking, and education.
share in finance, that part of the capital of a company held by a member.
shareholder owner of part of the share capital of a company.
shift in demand curve a shift in the demand or supply curve to the left on a price-quantity diagram. A shift in the demand curve can arise because of a change in the income of buyers, a change in the price of other goods, or a change in tastes for the product.
shift in supply curve a shift in the demand or supply curve to the right on a price-quantity diagram. A shift in the supply curve can arise because of change in the costs of production, a change in technology, or a change in price of other goods.
shortage a situatin where the quantity demanded is greater than the quantity supplied.
skilled worker manual worker who possesses a recognized craft skill, such as an electrician or a plumber. The skill is acquired through education and training. Work done by skilled workers cannot be done by just anyone, unlike those tasks performed by unskilled workers.
social capital is usually owned by the state and is the infrastructure of the economy, such as roads, bridges, schools, and hospitals.
social costs are all the costs incurred by society through production.
social services services provided by the State for the community, esp. education, health, and housing.
social work work of benefit to those in need of help or welfare, esp. done by specially trained personnel.
sole trader or sole proprietor one person who runs a business, receiving all profits and responsible for all liabilities. Many small businesses are sole traders.
sole proprietorship a business that is owned by one person.
special drawing right (SDR) the right of a member state of the International Monetary Fund to apply for money to finance its balance of payments deficit. Originally, the SDR was linked to gold and the US dollar.
specialization a method of organizing production where economic units such as households or nations are not self-sufficient but concentrate on producing certain goods and services and trading the surplus with others.
statistics 1 a collection of information shown in numbers. 2 the science of collecting, classifying and analying such information.
standard of living the measure of consumption and welfare of a country, community, class, or person. Individual standard-of-living expectations are heavily influenced by the income and consumption of other people in similar jobs.
stimulus a thing that encourages or excites smb/smth to activity, greater effort, etc; an incentive.
stock 1 materials, unfinished goods, or work-in-progress, and finished goods that businesses hold. 2 in finance, the UK term for the fully paid-up capital of a company.
Stock Exchange institution for the buying and selling of stocks and shares (securities). The world’s largest stock exchanges are London, New York (Wall Street), and Tokyo.
stockholder owner of stock in a corporation.
stocks and shares investment holdings (securities) in private or public undertakings.
stock-in-trade 1 all the requisites of a trade or profession. 2 a ready supply of characteristic phrases, attitudes, etc.
stock market 1 = Stock Exchange. 2 transactions on this.
supply the production of goods or services for a market in anticipation of an expected demand.
supply and demand one of the fundamental approaches to economics, which examines and compares the supply of a good with its demand (usually in the form of a graph of supply and demand curves plotted against price).
supply curve diagrammatic illustration of the relationship between the price of the good and the quantity that producers will supply at that price.
supply schedule a table showing the quantities of a product that would be offered for sale at various prices at a given time.
supply-side denoting a policy of low taxation and other incentives to produce goods and invest.
surplus a situation where the quantity supplied is greater than the quantity demanded.
tax assessor a person who places value on property for tax purposes.
taxation raising of money from individuals and organizations by the state in order to pay for the goods and services it provides.
tax avoidance conducting of financial affairs in such a way as to keep tax liability to a minimum within the law.
tax evasion failure to meet tax liabilities by illegal action, such as not declaring income. Tax evasion is a criminal offence.
tax haven country or state where taxes are much lower than elsewhere. It is often used by companies of another country that register in the tax haven to avoid tax.
tax inspector an official who examines statements of people’s income and decides the tax to be paid.
taxman (pl. -men) an inspector or collector of taxes.
tax shelter investment opportunity designed to reduce the tax burden on an individual or group of individuals but at the same time to stimulate finance in the direction of a particular location or activity. Such shelters might be tax exempt or lightly taxed securities in government or a local authority, or forestry or energy projects.
tax year twelve-month period over which an individual or company calculates its income and liability to pay tax. The British tax year runs from 6 April of one year to 5 April in the following year.
technology the application of science to commerce and industry.
total cost the sum of all the costs of producing a given level of output. It is equal to fixed cost plus variable cost.
trade 1 buying and selling. 2 buying and selling conducted between nations etc. 3 business conducted for profit.
trade cycle Brit. recurring periods of boom and recession.
trade gap the extent by which a country’s imports exceed its exports.
trade in (often foll. by for) exchange (esp. a used car etc.) in esp. part payment for another.
trade mark 1 a device, word, or words, secured by legal registration or established by use as representing a company, product, etc. 2 a distinctive characteristic etc. trade name 3 a name by which a thing is called in a trade. 4 a name given to a product. 5 a name under which a business trades.
trade off exchange, esp. as a compromise.
trade price a wholesale price charged to the dealer before goods are retailed.
traditional economy an economic sysem that allocates scarce resources according to custom; change and growth are very slow; people do what their parents did before them; and most goods are produced and consumed locally.
traditional theory of wage determination the theory that uses the tools of supply and demand to explain differences in wage rates.
turnover 1 the amount of money taken in a business. 2 the number of people entering and leaving employment etc.
unemployment lack of paid employment. The unemployed are usually defined as those out of work who are available for and actively seeking work.
unlimited liability full responsibility of an individual or business organization for paying any debts incurred in a business activity.
unskilled worker worker who possesses no specialized knowledge or skill. Any worker can perform the tasks done by an unskilled worker. Examples of unskilled workers are general labourers, cleaners, and road sweepers.
utility the total satisfaction derived from the consumption of goods and services.
value the worth of something in terms of money or other goods for which it can be exchanged..
value-added tax (VAT) a tax on the amount by which the value of an article has been increased at each stage of its production.
variable costs costs that increase as the number of units produced increases.
venture 1 an undertaking of a risk. 2 a risky undertaking. 3 a commercial speculation.
venture capital or risk capital money put up by investors such as merchant banks to fund a new company or expansion of an established company.
want the desire of consumers for material goods and services. Wants are argued to be infinite, meaning that consumers can never be satisfied with their existing standard of living but would always like to consume more goods and services. Infinite wants mean that resources have to be allocated.
wage rate the wage over a period of time, such as an hour or week.
wages income derived from human labour. Technically they cover all payments for the use of labour, mental or physical, but in ordinary usage the term excludes income of the self-employed and is restricted to compensation of employees.
wealth the wealth of a nation is its stock of physical capital, human capital, and net financial capital owned overseas.
work 1 the application of mental or physical effort to a purpose; the use of energy. 2 a a task to be undertaken. b the materials for this.
workforce 1 the workers engaged or available in an industry etc. 2 the number of such workers.
working capital current assets minus current liabilities of a business organization. It is the assets which are left free, after liabilities have been covered, for the business to use or put to work if it feels that it should take that risk.
worth 1 of a value equivalent to. 2 such as to justify or repay; deserving; bringing compensation for (worth doing; not worth the trouble). 3 possessing or having property amounting to (is worth a million pounds).