POSIBNIK_1_KURS

income – the money that you earn from your work or that you receive from investments, the government etc.

income tax – the amount of money that you pay to the government according to how much you earn or receive from some other sources

incorporate – (v) – to form a legal company or organisation, for example by obtaining a certificate from the authorities

inflation – a continuing increase in prices and fall in the purchasing value of money, or the rate at which prices increase

input – anything that goes into the production process

insurance – risk-transfer mechanism that ensures full or partial financial compensation for the loss or damage caused by event(s) beyond the control of the insured party

intermediary – a person or an organisation that helps other people or organisations who are unable or unwilling to deal with each other directly to reach an agreement

investment – the action or process of using money in order to make a profit or earn interest, for example by buying shares, bonds, property, etc.; the act or process of buying materials, machines, etc. to make goods to sell

irredeemable – impossible to change or make better; money or something that cannot be exchanged

know-how – commercial and saleable knowledge of how to do a particular thing;

experience

labour – work, especially physical work; all the people who work for a company or in a country

labour productivity – rate of output per worker (or a group of workers) per unit of time as compared with an established standard or expected rate of output

labour supply – availability of suitable human resources in a particular labor

591

market

laissez-fair – literally, leave to do; a policy of non-intervention by government in the economy, leaving all decisions to the market

land – includes all physical elements in the wealth of a nation bestowed by nature such as climate, environment, fields, forests, minerals, mountains, lakes, streams, seas, and animals

Law of Supply and Demand – the theory that prices are determined by the interaction of supply and demand: an increase in supply will lower prices if not accompanied by increased demand, and an increase in demand will raise prices unless accompanied by increased supply

lease – a legal agreement which allows you to use a building, car etc. for a period of time, in return for rent

legal tender – money that can legally be used to pay for things in a particular

country

liability/liabilities – the amount of money that a company or a person owes; the state of being legally responsible for smth

liquidity – the capacity to turn assets into cash, or the amount of assets in a portfolio that have that capacity. Cash itself (i.e., money) is the most liquid asset.

macroeconomics the study of large economic systems such as those of a whole country or area of the world

management – the conducting or supervising of something (as a business); especially: the executive function of planning, organizing, coordinating, directing, controlling, and supervising any industrial or business project or activity with responsibility for results; the directors and managers who have the power and responsibility to make decisions and oversee an enterprise

manufacturing – the process of converting raw materials, components, or parts into finished goods that meet a customer's expectations or specifications.

592

margin for profit – ratio of profit after taxes to cost-of-sales, often expressed as a percentage. It is one of the measures of the profitability of a firm, and an indicator of its cost structure.

marginal costs – the increase or decrease in the total cost of a production run for making one additional unit of an item. It is computed in situations where the breakeven point has been reached: the fixed costs have already been absorbed by the already produced items and only the direct (variable) costs have to be accounted for

marginal product – output that results from one additional unit of a factor of production (such as a labour hour or machine hour), all other factors remaining constant

marginal revenue product – the worth of the extra output that can be generated by adding an extra input unit

marginal tax rate – a rate of tax that is paid on your next unit of income; the highest rate of tax that smb pays

Marginalism – the concept that economic behaviour can be determined by analysing the fluctuations in the demand for basic goods and services

market – the area of economic activity in which buyers and sellers come together and the forces of supply and demand affect prices; the available supply of or potential demand for specified goods or services

market economy – an economic system in which the main decisions regarding production, distribution, and exchange are made by the market, i.e. by the forces of supply and demand

market equilibrium – the situation when supply and demand in a market are equal at the prevailing price

means of liquidity – money or goods that can easily be sold to pay debts or anything else that can easily be exchanged for money

means of production – the facilities and resources for producing goods

593

measure of value – one of the most important properties of money: its ability to be a benchmark for measuring value of goods and services.

medium of exchange - anything that is used, like money, to make payments for goods, services, and assets. For payments between countries with different currencies, if the national currencies are not trusted, another country's currency or gold may be used.

microeconomics – the branch of economics that deals with the behaviour of individual market participants, mainly individual firms or consumers

mixed economy – an economy in which both publicly and privately owned enterprises operate simultaneously

money – anything (any commodity or token) that is generally accepted in payment for goods and services. It serves as a medium of exchange, a measure of value and a store of value

money supply – the quantity of currency in circulation plus the amount of demand deposits. The money supply, together with the amount of real economic activity in a country, is an important determinant of its price level and its

natural resources – naturally occurring materials such as coal, fertile land, etc., that can be used by man

necessity – something that you need to have in order to live

needs and wants – unsatisfied human desires that motivate their actions and enhance their fulfilment when met

opportunity cost a benefit, profit, or value of something that must be given up to acquire or achieve something else

output – the amount of goods or work produced by a person, machine, factory etc.

ownership – the ultimate and exclusive right conferred by a lawful claim or title, and subject to certain restrictions to enjoy, occupy, possess, rent, sell, use, give away, or even destroy an item of property

594

partnership – a business that is owned by a group of professional people that work together and share the profits

perishable goods = perishables – things, especially foodstuffs, likely to decay after a short time if it is not kept in the proper conditions

population – the number of people living in a particular area, country etc.; all of the people who live in a particular area;

price system – the use of prices to allocate scarce resources

private enterprise – the economic system in which industry or business is owned by individuals and independent companies and is not controlled by the government; a business that is owned by individuals or other companies, not by the government

private sector – the part of a country’s economy that is not under the direct control of the government, but is owned by individuals and independent companies

privatization – sale or return of publicly owned enterprises to private ownership and control

product – the good or service one receives in an exchange

production – the processes and methods used to transform tangible inputs (raw materials, semi-finished goods, subassemblies) and intangible inputs (ideas, information, knowledge) into goods or services

productive resources – materials, labour or money which is used to create goods

and services

productivity – the output of goods and services as measured per unit of time, or per person, per company, per industry, or for the whole economy

profit – the surplus remaining after total costs are deducted from total revenue, and the basis on which tax is computed and dividend is paid. It is the best known measure of success in an enterprise

profitability – when a business or an activity makes a profit, or the amount of

595

profit it makes

property – the thing or things that someone owns; a building, a piece of land, or both together

proprietor – the owner of a business

purchasing power - the amount of of real goods and services that money will buy, usually measured (inversely) by the CPI (consumer price index); value of a unit of money considered in terms of how much you can buy with it

ratio – a relationship between two amounts, represented by a pair of numbers showing how much bigger one amount is than the other

rationing – government allocation of scarce resources and consumer goods, usually adopted during wars, famines, or other national emergencies raw material – basic substance in its natural, modified, or semi-processed state, used as an input to a production process for subsequent modification or transformation into a finished good

representative money – paper currency backed by a government or bank’s promise to redeem it for a given weight of precious metal (gold or silver). Money of this type was based on the gold standard, and, in theory, could be exchanged for a fixed amount of gold. For example, the US dollar was convertible to gold until 1934.

reserve currency – a currency that is considered strong and reliable and is used a lot in international trade. National banks keep large stores of reserve currencies

resource – an economic or productive factor required to accomplish an activity, or as means to undertake an enterprise and achieve desired outcome

retailing – the business of selling goods to ultimate consumers for personal or household consumption

returns on capital – ratio measuring the profitability of a firm expressed as a percentage of funds acquired from investors and lenders

revenue – the income generated from sale of goods or services, or any other use of

596

capital or assets, associated with the main operations of an organization before any costs or expenses are deducted; the income accruing from taxation to a government during a specified period of time, usually a year

salary – a fixed regular payment made usually on a monthly basis by an employer to an employee, especially a professional or white-collar worker

scarcity – a limit to the supply of productive resources or consumer goods in relation to producers' or consumers' demand for them

securities – financing or investment instruments (some negotiable, others not) bought and sold in financial markets, such as bonds, debentures, notes, options, shares (stocks), and warrants

services – intangible products such as accounting, banking, cleaning, consultancy, education, insurance, expertise, medical treatment, or transportation

shareholder – a person or group that owns shares in a company or business

shortage – a situation when there is not enough of the people or things that are

needed

small-scale decision-making unit – the informal group of individuals within an organization that decides which items the organization should buy

sole proprietorship – a business that is owned and run by one person

stock – the value of all the shares a company can make available; a number of shares in a company that one investor holds; a supply of a particular type of thing that a shop has available to sell; the total amount of something that is available to be used in a particular area

stock market – a place where shares are bought and sold, i.e. a stock exchange

store of value – one of three basic functions of money: the ability to retain value over time, and therefore be useful for those who wish to sell something now and not spend he proceeds until later

substitute – a good or service which can be used instead of another

597

supply – the amount of a good or service offered for sale

supply curve – a curve showing the amount that firms in an industry are willing to supply at each possible price

surplus – an amount of something left over when requirements have been met; an excess of income or assets over expenditure or liabilities in a given period

sustainability – continued development or growth, without significant deterioration of the environment and depletion of natural resources on which human well-being depends

tax – an amount of money that you must pay to the government according to your income, property, goods etc. and that is used to pay for public services; compulsory monetary contribution to the state's revenue, assessed and imposed by a government on the activities, enjoyment, expenditure, income, occupation, privilege, property, etc., of individuals and organizations

tax loophole – a provision in the laws governing taxation that allows people to reduce their taxes

tax rate – the percentage of an amount of money or of the value of smth that has to be paid as tax

taxation – a means by which governments finance their expenditure by imposing charges on citizens and corporate entities

trade – the activity of buying, selling, or exchanging goods or services between people, firms, or countries

trade-off – giving up one thing in order to obtain something else

traditional economy – an economic system that allocates scarce resources according to customs; change and growth are very slow; people do what their parents did before them; and most goods are produced and consumed locally

transaction – a business deal; the action or process of buying or selling something

598

traveller’s cheque (AmE. traveler’s check) – a printed piece of paper that you sign and can exchange it for money of a foreign country when you are travelling.

Traveller’s cheques can be replaced if they get lost or stolen.

undercapitalization – a situation where a business does not have sufficient stockholders' funds for its size of operations. An undercapitalized firm does not have enough cash to carry out its functions and usually does not qualify for bank or other loans due to its unacceptably high loan-to-equity ratio. Under capitalization is one of the major causes of business start-ups failures

unemployed – person of employment age (generally 16 to 55 years) who does not have a paying job but is available for work and is actively seeking a job

unemployment – total number of able men and women of working age seeking

paid work

unit of account - a basic function of money, providing a unit of measurement for defining, recording, and comparing value.

urbanization – an increase in a population in cities and towns versus rural areas

value – the amount that something is worth, measured especially in money

venture capital – capital invested in a project in which there is a substantial

element of risk

venture capitalists private investors who provide venture capital to promising business ventures

wage – (often plural) a fixed regular payment for work, typically paid on a daily, hourly, weekly or piece work basis

warrant – an official document giving someone the right to do something, for example buy shares in a company; a legal document that is signed by a judge, allowing the police to take a particular action

wealth – a large amount of money, property etc. that a person or country owns

599

wear-and-tear – gradual physical deterioration of an asset from age, use, and/or

weathering

welfare – practical or financial help that is provided, often by the government, for people that need it; the health, happiness, and fortunes of a person or group

workforce – total number of a country's population employed in the armed forces and civilian jobs, plus those unemployed people who are actually seeking paying work; total number of employees (usually excluding the management) on an employer's payroll

yield – the amount of profits, crops etc. that something produces; the annual income earned from an investment, expressed usually as a percentage of the money invested

600