Complex economic terms. Basic terms for the course "economic theory. Closed joint stock company
Abstraction- a method of scientific research that excludes from the analysis everything that is accidental (particular, secondary) and finds the essential, constant in the object under study.
Accelerator- the coefficient opposite to the multiplier; characterizes the influence of the growth of national income on the growth of investment (see Multiplier).
Budget deficit- the amount of excess of government expenditures over its revenues.
State regulation of the economy- government intervention in economic processes by influencing the functioning of market mechanisms by administrative (legislative), economic (currency and financial, monetary, fiscal, etc.) methods and levers.
Demonopolization- elimination of the state or other monopoly dictating its terms to the market.
"Dogma Smith"- the assessment of the theory of reproduction by A. Marx in connection with the fact that Smith's "price of the annual product of labor" is reduced entirely to income, that is, excludes the accumulation associated with the need to resume the reproduction process and expand its scale.
"The Iron Law of Wages"- follows from the theory of population T.R. Malthus and means that due to the natural growth of the population (respectively, the outstripping increase in the supply of labor) and the diminishing fertility of the land, the level of wages in society allegedly cannot grow, invariably remaining at a low level.
"Clark's Law"- an assessment of the concept of JB Clark on the distribution of income based on the principles of the marginal analysis of the prices of factors of production; in accordance with this "law" the incentive to increase the factor of production is exhausted as the price of this factor begins to exceed the possible income of the entrepreneur.
Say's Law- the concept of Zh.B. Say about the unhindered and complete implementation of the social product, i.e. crisis-free economic growth; in accordance with this “law”, when the society achieves and observes the principles of “laissez faire”, production (supply) will generate adequate consumption (demand), i.e. the production of goods and services necessarily generates income, for which these goods and services are freely sold due to flexible and free pricing in the market.
"Gossen's law"- the main theoretical principles marginalism, one of the predecessors of which was G. Gossen; distinguish two "Gossen's laws", of which the first says that with an increase in the availability of a given good, its marginal utility decreases, and in accordance with the second, the optimal structure of consumption (demand) is achieved when the marginal utilities of all consumed goods are equal.
Institutionalism- one of the modern directions of economic thought, which was formed in the 20-30s. XX century. as an alternative to the neoclassical direction of economic thought; its main feature is the study of the entire set of socio-economic factors (institutions), considered in interconnection and interdependence and in a historical context, as well as the idea of social control of society over the economy.
Keynesianism- the economic doctrine of the need and importance of state regulation of the economy through the widespread use by the state of fiscal, monetary policy and other active measures to influence the market mechanism.
Classical political economy- the direction of economic thought (the period from the end of the 18th to the second half of the 19th century), whose representatives debunked the protectionist ideas of mercantilism and laid the scientific basis for methodological and theoretical studies of market economic relations; the main feature of the direction is the propaganda of the ideas of "pure" economic theory and the expediency of "complete laissez faire", i.e. absolute non-interference of the state in business life and the mechanism of a self-regulating economy.
Quantitative theory of money- theory proving:
a) according to the orthodox version of the "classics", the dependence of changes in prices for goods solely on the amount of money in circulation;
b) according to the "neoclassicists", the possibility of adjusting prices for goods in connection with the cost of monetary material, the inconsistent level of the velocity of circulation of money and the amount of commodity mass, as well as taking into account the degree of liquidity of money.
Monopoly competition- a market situation in which the degree of increased interchangeability of competing goods, i.e. “Product differentiation” allows the seller to control the level of supply and prices and achieve an absolute monopoly on his own product, but at the same time he (the seller) continues to be subject to competition from other sellers who have more or less imperfect substitutes.
Competition imperfect- a market situation in which a small number of large producers (sellers) are able to influence the level of the market price.
The competition is perfect(free, clean or complete) - a market situation with many sellers and buyers of homogeneous products that cannot influence the price level in the market.
Marshall Cross- a graphic representation of the intersection of the demand curve and the supply curve, at the point of intersection of which equilibrium is established between them, as well as equilibrium, i.e. stable price.
"Phillips Curve"- an empirical curve characterizing the relationship between the annual percentage change in wages in monetary terms and the level (shares) of unemployment.
"Indifference curves"- empirical curves reflecting the preservation of the total utilities of consumed goods in various combinations of their combinations and the preference of some combinations over others.
Liquidity- the ability of material assets and other resources to quickly turn into money; the ability of an enterprise to pay its liabilities on time, to turn assets of the balance sheet into money.
Macroeconomics- the economy as a whole or its most important components; a section of economic theory that studies the economy as a whole or its main components.
Marginalism(marginal economic theory) is a generalization of ideas and concepts, which is based on the study of marginal economic values as interrelated phenomena of the economic system at the micro and macro levels.
"Margin revolution"- that occurred in the last third of the 19th century. the transition from the values of the "classical school" to the values (theoretical and methodological principles) of marginalism.
Mercantilism- the direction of economic thought (period of the 16th - 18th centuries), whose representatives identified the country's wealth with money and considered it as the most important means of economic growth, and saw the source of wealth in foreign trade, in ensuring an active trade balance; the main feature of the direction is the propaganda of the ideas of the protectionist economic policy of the state, i.e. his participation in the management of the economic system.
Metal theory of money- a theory that interprets the conditionality of the value of money by the weight of the coin to be minted by the state.
Microeconomics- a section of economic theory that studies economic units, such as firms, any individual economic entities or phenomena.
Monetarism- an economic theory based on the decisive role of the money supply in circulation in the implementation of the policy of stabilizing the economy, its functioning and development.
Monopoly- an enterprise or a group of enterprises with a dominant position in the market, which allows them to control and determine prices; form of a market controlled by one or more enterprises.
Monopoly price- the type of price set by the monopoly. Depending on the goals, the monopoly can set monopoly high and monopoly low prices.
Monopsony- a situation when there are a lot of small sellers and one single buyer in the market.
Cartoonist- multiplier; a category used in economic theory to characterize and define the various relationships where the multiplier effect occurs. In particular, in Keynesianism, a multiplier is understood as a coefficient characterizing the dependence of changes in income on changes in investments.
"Invisible hand"- a concept introduced into scientific circulation by A. Smith, in accordance with which such a ratio is assumed in the interaction of economic entities and the state, when the latter, without opposing objective economic laws, does not interfere in the process of "natural", i.e. free functioning of the market mechanism.
Money neutrality- the theoretical position of the "classics", which simplifies the essence of the monetary product to some technical means convenient for exchange, and leads to the orthodox version of the quantitative theory of money.
"Neoclassical synthesis"- P. Samuelson's term used "to designate ... the synthesis of those truths that were established by classical political economy, and the provisions proved by modern theories of income generation"; the broader semantic load of this term in the economic literature indicates the formation of a new universal doctrine of modern economic science.
Neoclassical theory- one of the modern directions of economic thought, which was formed in the 90s. XIX century. on the basis of both the ideas of economic liberalism and "pure theory" and the principles of system analysis of marginal (marginal) indicators and microeconomic research, being an alternative to the classical political economy; from the 30s. XX century. theoretical and methodological tasks of the "neoclassicists" were supplemented by macroeconomic studies and problems of social orientation and state regulation of the economy.
Neoliberalism- the economic concept of state regulation of business processes based on the principles of achieving free ("pure") competition between entrepreneurs, freedom of markets and other elements of economic liberalism; alternative to Keynesianism, the concept of state regulation of the economy.
Nominalistic theory of money- a theory that interprets the conditionality of the value of the money to be minted by the nominal value of the coin, which is established by the state.
General equilibrium- a stable state of a competitive economy, in which the consumer maximizes the value of the utility function, and competing producers maximize their profit at prices that ensure equality of supply and demand.
Oligopoly- the dominance of several of the largest firms in the market.
"Optimum Pareto"(public maximum utility) - a concept designed to assess such changes that either improve the well-being of all, or do not worsen the well-being of all with an improvement in the well-being of at least one person; a concept that allows you to make the best decision to maximize profits.
Competition policy- a set of laws and government measures aimed at the maximum possible implementation in practice of the ideal of complete (free, pure) competition.
Political Economy- the term introduced into scientific circulation by A. Montchretien, who published in 1615 "Treatise on Political Economy"; the name of the economic science designed to solve problems:
a) state economy (mercantilist version);
b) free private enterprise (version of classical political economy).
Marginal utility- the ability to satisfy the least intense need; additional utility that a consumer receives from an additional unit of a good or service.
Protectionism- a policy aimed at protecting the national economy from foreign competition by directly or indirectly limiting the import of goods.
"Psychological Law"- the position of J. M. Keynes, according to which "as real income increases, society wants to consume a constantly decreasing part of it."
Equilibrium price- the price of the goods in case of equality of supply and demand.
Likewise for liquidity- the desire to put aside some of the money in the stock in the form of bank or securities.
Method for determining the total utility- a method for assessing the marginal utility of consumed goods; the method is called addictive if the marginal utility of homogeneous goods with each subsequent unit is characterized with a decreasing trend, and multiplicative, if the marginal utility of homogeneous goods is multiplied by their number.
"Fair price"- the category of the economic doctrine of the canonists, which “explained” the legitimacy of administrative (non-market) pricing and the possibility of “selling a thing more expensively” in order to avoid damaging both its “owner” and the entire “public life”.
"Theory of imputation"- the theory of pricing of the "Austrian school", the essence of which boils down to the process of sequential intervention of the share of the value (value) of the good of the "first order" with the goods of the "subsequent orders" used in its production.
Production cost theory- one of the costly interpretations of the theory of value, according to which the value of a commodity is determined by the costs in the production process for the factors "labor", "capital", "land".
"Theory of Expectation"- E. Boehm-Bawerk's theory of the mechanism of the origin of interest on capital due to the productive nature of the time factor; specific resource "capital" depending on its size and time of operation, i.e. "Expectations", provides a higher or lower interest on capital.
Labor theory of value- one of the costly variants of the theory of value, according to which the value of a product is created by a certain amount of labor expended.
"Overpower Phenomenon"- the position put forward by E. Chamberlin in theory monopolistic competition; arises in the course of the activity of a seller - a monopolist, seeking to take possession of "certain parts of the common market", and is supported by his patents, trade marks, craftsmanship, and special talents.
Physiocracy- translated from Greek "the power of nature"; the course of classical political economy (second half of the XYIII century) in France, whose representatives proceeded from the decisive role in the economy and consciousness of the national wealth of the land, agricultural production.
Economic(economic) system - V. Eiken's concept of two "ideal types" of economic systems: a centrally controlled economy (economic life is regulated by plans emanating from one center) and an exchange economy (each economic entity is guided by its own plans).
"Household Robinson"- a term introduced into scientific circulation by K. Menger, used to analyze economic relations and indicators at the level of a separate economic entity (individual), i.e. at the micro level, taking into account the phenomenon of property and due to the relative scarcity of the benefits of human egoism.
Chrematism- the term used by Aristotle to designate the unnatural sphere of human activity; the careless art of making a fortune through large trade deals and usurious transactions.
Pure economic theory- theoretical and methodological position of the "classics" and "neoclassicists", testifying to their commitment to "stick to pure knowledge", "pure theory", ie without subjectivist, psychological and other non-economic layers in economic analysis.
Economics- the term introduced into scientific circulation by A. Marshall in the work "Principles of Economics" (1890); the name of economic science, which, according to P. Samuelson, "implies economy or maximization" and is devoted to "the problem of the optimal volume at which the profit reaches its maximum."
Economic liberalism(laissez faire policy) - the policy of non-interference of the state in the economy; a set of economic freedoms; free competition, free enterprise, free prices, free trade, etc.
Elasticity of supply- the reaction of the proposal to the price change.
Elasticity of demand- the response of demand to price changes.
"Veblen effect"- characteristics of a situation in which a decrease in the price of a product is perceived by a buyer as a deterioration in its quality or a loss of its “activity” or “prestige” among the population, and then the product ceases to be in consumer demand, and in the opposite situation, on the contrary, the volume of purchases with an increase in price can increase.
Effective demand- a term from the concept of J.M. Keynes about the potential and stimulated by the state demand for investments and means of production.
Basic terms for the course "economic theory"
ALTERNATIVE (IMPLIED) COSTS (opportunity (economic) costs) - monetary incomes donated by an economic entity
BASE YEAR - the year taken as a basis when constructing price indices.
BUDGET DEFICIT (budget deficit) - the amount of excess government spending over revenues in each given year.
BUDGET PROFICIT (budget proficit) - the amount of excess income over government spending in each given year.
GROSS DOMESTIC PRODUCT (GDP, gross domestic product) is the total market value of all final goods and services produced in the economy of a given country within its territory within one year, regardless of the nationality of the manufacturer.
GROSS NATIONAL PRODUCT (GNP, gross national product) - the total market value of all final goods and services produced by the national economy within one year, regardless of location.
Quantity supplied (Qs) - the quantity of a given product that manufacturers are willing to offer to the market at given prices, at a given time and place.
VALUE OF DEMAND (quantity demanded - Qd) - the quantity of a given product that buyers are ready to purchase at given prices, at a given time and place.
Complementary goods - goods for which there is an inverse relationship between the prices of one good and the demand for another.
SUBSTITUTE GOODS (substitute goods) - goods for which there is a direct relationship between the prices of one product and the demand for another.
GNP deflator is an indicator of the general price level, calculated as the ratio of the real volume of the gross national product (GNP) to the nominal GNP.
DEFLATION (deflation) - a decrease in the general level of prices; the opposite process to inflation.
ADDED VALUE (value added) - the difference between the cost of products produced by the enterprise (or industry) and the cost of purchased intermediate products.
LONG-TERM PERIOD (long run) - a period sufficient for the firm to change the volumes of all the factors of production it uses.
INCOME (revenue) - the total amount of money received by an economic entity over a period of time.
NATURAL RATE OF UNEMPLOYMENT (natural rate of unemployment) - the level of unemployment in conditions of full employment in the economy.
OAKEN'S LAW (Okun "law) - the inverse relationship between the unemployment rate and the real volume of GNP, showing that an increase in the level of actual unemployment (U) relative to its natural level (U *) by one percent leads to a lag in real output by 2.5% ...
THE LAW OF DEMAND (law of demand) - if the price of any product increases and all other parameters remain unchanged, then the value of demand for this product will decrease
The law of diminishing returns is the principle according to which the additional use of a variable resource with a constant amount of constant resource leads, starting from a certain point in time, to a reduction in the marginal return or marginal product.
WAGE (wage) - the price of labor (labor services) per unit of time (hour, day, etc.).
COSTS (costs) - the costs of the company for the production of goods or services over a certain period of time.
CONSUMER'S SURPLUS - the additional benefit from trade that the buyer receives. It is defined as the difference between the demand price and the equilibrium market price of the product.
The producer's surplus is the additional profit from trade received by the seller and is defined as the difference between the minimum price of the producer and the equilibrium market price.
IZOQUANT (isoquant) - a line that shows all possible combinations of resources for the production of a given volume of output.
IZOCOSTA (isocost line) - a line that shows all combinations of economic resources that a firm can acquire, taking into account market prices for resources and the full use of its budget.
PRICE INDEX (price index) - an index showing the dynamics of price changes, is used to recalculate the nominal volume of production (income) in real volume (income).
INDIVIDUAL PRIVATE ENTERPRISE (individual proprietorship) - one of the forms of entrepreneurial activity; single-owner firm
INFLATION (inflation) - an increase in the general level of prices in the economy.
INFLATION COSTS (cost-push inflation) - inflation caused by a decrease in aggregate supply as a result of rising production costs.
DEMAND INFLATION (demand-pull inflation) - inflation caused by an increase in aggregate demand.
CAPITAL (capital) - investment resources, means of production; factors of production created by man in the production process. Financial capital (financial assets) does not belong to production factors.
COMMAND ECONOMY (command economy) - an economic system in which material resources are state property, and the direction and coordination of the economic activities of society are carried out through central planning.
SHORT RUN - a period of time during which a firm cannot change the quantity of at least one production resource.
The production possibilities curve is a curve showing the possible combinations of production of two products in full employment, full use of all economic resources, constant technology and a constant supply of resources. This curve graphically illustrates the need for choice in the face of limited resources and the presence of increasing opportunity costs.
SCOPE OF PRODUCTION (see. Scale effect proproduction)
MICROECONOMICS (microeconomics) - a part of theoretical economics that studies individual economic actors (individual consumers, individual firms, the state) in the process of production, exchange and consumption of goods and services in order to satisfy their unlimited needstey through limited resources.
MODEL (model) - a simplified representation of economic reality, allowing you to highlight the most important in a concise compact form (for example, using graphs and equations) or an accurate description of a simplified imaginary economy.
MONOPOLISTIC COMPETITION (monopolistic competition) - a market in which a significant number of firms that produce differentiated products operate;
MONOPOLY (monopoly) - a market in which there is one seller and there are significant entry barriers.
Imperfect competition - all markets in which the conditions of perfect competition are not met: monopoly, monopsoniya, monopolistic competition, oligopoly and oligopsony; markets in which buyers or sellers are able to unilaterally influence market prices.
Implicit costs - determined by cost internal resources, those. resources, located inproperty of this company. An example of an implicit cost for an entrepreneur would be the salary that he could receive while working for hire.
NOMINAL income (nominal) - measured in current prices, not adjusted for inflation.
NORMAL PROFIT (normal profit) - part of the total costs of the company; payments that a firm must make in order to acquire and retain entrepreneurial talent; the minimum income to be rewarded with entrepreneurial ability; imputed fromsupport.
NORMATIVE ECONOMICS (normative economics) - an approach to assessing economic phenomena from the point of view of what the economy should be, the goals of economic development, economic policy.
TOTAL (TOTAL) COSTS (total cost - TS) - the total costs of the enterprise for the acquisition of necessary economic resources (factors of production);
TOTAL REVENUE (TR) - the total revenue of the company from the sale of its products.
TOTAL PRODUCT (TOTAL) (total product - TP) - the total volume of products produced by the enterprise for a certain period of time.
LIMITATION OF RESOURCES (scarce resources) - the impossibility of simultaneous and complete satisfaction of all the needs of all members of society.
OLIGOPOLY (oligopoly) - a market in which a small number of large firms operate, producing both homogeneous and differentiated products.
NEGATIVE EFFECT OF THE SCALE OF PRODUCTION (decreasing returns to scale or diseconomies of scale) - the increase in output is less than the increase in costs, expressed in an increase in long-term average total costs with an increase in the scale of production.
PARTNERSHIP (partnership) - one of the forms of organization of entrepreneurial activity; a firm owned and operated by two or more persons.
CROSS-PRICE ELASTICITY OF DEMAND (cross-price elasticity of demand) - characterizes the percentage change in the value of demand for one product when the price of another product changes by 1%. Used to characterize complementary and interchangeable goods.
VARIABLE COSTS (variable cost) - costs, the total value of which depends on the change in the volume of output.
VARIABLE PRODUCTION FACTOR (RESOURCE) - a resource, the quantity of which can be changed.
POSITIVE ECONOMICS (positive economics) is a direction in economic theory that involves the explanation and forecasting of economic phenomena, the study of general economic laws on the basis of which the principles of economic behavior are formed, the identification of a cause-and-effect or functional relationship between phenomena.
FULL EMPLOYMENT - the level of employment at which there is only frictional and structural unemployment, but there is no cyclical unemployment (and when the real national product is equal to the potential).
POSITIVE EFFECT OF THE SCALE OF PRODUCTION (increasing returns to scale or economies of scale) - the increase in output is greater than the increase in costs, expressed in a decrease in long-term average total costs with an increase in the scale of production.
CONSTANT COSTS (fixed cost) - the costs of the company, the value of which does not change when the volume of the firm's output changes.
A FIXED RESOURCE (fixed resource) is a resource, the amount of which the company cannot change.
CONSTANT EFFECT OF THE SCALE OF PRODUCTION - the increase in the volume of output is equal to the increase in costs, expressed in a constant value of long-term average total costs with an increase in the scale of production
NEED (needs, wants) - the objective need of a person or a group of people for something necessary to maintain the life and development of the body and personality, (see. Maslow's hierarchy of needs theory),
MARGINAL RATE OF TECHNOLOGICAL SUBSTITUTION (MRTS) - The amount of one resource that must be reduced in exchange for an increase in another resource per unit, so that the volume of production of the firm remains unchanged.
MARGINAL COSTS (MC) - the increase in the total costs of the company from the production of one additional unit of production.
MARGINAL REVENUE (MR) - the increase in the total income of the company from the sale of one additional unit of its products.
MARGINAL PRODUCT (MP) of a factor is an additional volume of output obtained with an increase in the cost of a given factor per unit.
Entrepreneurial ability is one of the most important economic resources. Assumes the ability of a person: 1) to organize the production and release of goods and services by combining all other resources; 2) make basic decisions on production management and business conduct; 3) risk their money, time, work, business reputation; 4) be an innovator, i.e. introduce new technologies, new products, methods of organizing production.
PROFIT (profit) - the amount of excess of the firm's income over its costs; income of the owner of entrepreneurial talent.
PRODUCTION FUNCTION (production function) - reflects the relationship between the amount of resources used and the maximum possible volume of output per unit of time.
Equilibrium price - the price at which the value of the market demand is equal to the value of the market supply.
Equilibrium position - a state of the market in which market demand is equal to market supply and there are no tendencies to change.
Equilibrium quantity - the amount of market demand and the amount of market supply at an equilibrium price.
RENT (rent) - 1) the difference between the income of a factor of production and minimum amount necessary to keep the factor in this area of use; 2) income of the owner of natural resources, land.
RESOURCES (resourse) - the totality of all material goods and services used by a person to produce the products he needs.
MARKET (market) - a special form of relationship between individual, independently making decisions, business entities, between buyers and sellers,
MARKET SUPPLY (market supply) - the total supply of any product from all manufacturers; the sum of the values of the individual offer of a given product at different prices.
MARKET DEMAND (market demand) - the total demand for a product from all potential consumers; the sum of the values of individual demand presented by each consumer for a given product at different prices.
MARKET ECONOMY (market economy) - an economic system based on private property and the use of the mechanism of supply and demand to solve basic economic issues.
MIXED ECONOMY (mixed economy) - an economic system based on various forms of ownership and economic development of which is regulated by the market, traditions and centralized decisions.
PERFECT COMPETITION (perfect competition) - a market in which a significant number of independent producers operate, producing homogeneous products, there are no non-price competition and barriers to entry of new firms.
Aggregated demand (AD) - the sum of expenditures of households, firms, government and external sector.
The aggregated supply (AS) is the aggregate volume of the national product that is produced in a country at a given price level.
DEMAND (demand) - solvent need, desire and ability of an economic entity to buy a particular quantity of a given product.
AVERAGE TOTAL (AGGREGATE) COSTS (average total cost - ATC) - the volume of total costs per unit of output.
AVERAGE VARIABLE COSTS (AVC) - the volume of variable costs per unit of output.
AVERAGE FIXED COSTS (AFC) - the volume of fixed costs per unit of output.
AVERAGE REVENUE (AR) is the total income of a company per unit of output.
AVERAGE PRODUCT (average product - AR) of any factor of production - the volume of output per unit of the factor used.
TRADITIONAL ECONOMY (traditional economy) - an economic system in which traditions, experience, customs determine the practical use of production resources.
LABOR (labor) - a set of physical and mental abilities of a person spent in the production of goods and services.
ELASTICITY (elasticity) - the ratio of the percentage change in one variable, for example, A, to the percentage change in another variable B. To quantify elasticity, the coefficient of elasticity is used. Most commonly used elasticity of demand forprice, income elasticity of demand, price elasticity of supply, cross (volume) elasticity of demand and crossprice elasticity of demand.
Income elasticity of demand - characterizes the percentage change in the value of demand for a product when the consumer's income changes by 1%.
ELASTICITY OF THE PRICE (price elasticity of supply) - characterizes the percentage change in the value of the supply of goods when its price changes by 1%.
PRICE ELASTICITY OF DEMAND (price elasticity of demand) - characterizes the percentage change in the value of demand for a product when its price changes by 1%.
EFFECT OF THE SCALE OF PRODUCTION (economies of scale) - the process of increasing the output of production by increasing the use of all production resources, or changing the scale of production;
EFFICIENCY OF PRODUCTION (productive efficient) - production of goods with the lowest costs; using the minimum amount of resources for a given release volume.
Explicit cost - determined by the sum of the enterprise's expenses for payment and acquisition of resources қ external suppliers.
The owners of a joint stock company are the holders of the shares. These are people who have agreed to add an amount of money to the company's capital in exchange for a share of the profits. Share capital divided into shares, for example, 1000 rubles each. These shares can be traded.
SINKING FUND- money that is gradually accumulated to pay for the purchase of new equipment in the future.
DEMAND- the amount of money that buyers are willing to pay for goods at a certain price level for them.
LOAN PERCENTAGE- the amount of the monetary payment for the right to temporarily use the borrowed money.
INSURANCE- an agreement that the insurance company will pay the person or company insured with it a certain amount of money if an accident happens to him. To be eligible for such a payment, the insured must deposit a certain amount of money with the insurance company in advance - much less than what he could receive in the event of an accident.
CUSTOMS DECLARATION- a document filled in when transporting goods or property across the border of the country. On the basis of this document, it is decided whether it is possible to pass this product across the border and how much its owner must pay to the state for this.
SHADOW ECONOMY- activity for the production of goods or the provision of services, which is carried out without registration with state bodies. This is done in order to avoid paying taxes, or because the very nature of this activity is prohibited by law (for example, selling drugs).
PARTNERSHIP- two or more people jointly owning and managing a commercial firm.
COMMODITY EXCHANGE- a market where wholesalers buy and sell goods.
TRADEMARK is a brand name that helps customers remember the manufacturer and re-search exactly for his products. If a company wants to have its own trademark, it must register it with a special organization.
COMMODITY TURNOVER- this is the name of a situation in which goods are made for sale, and the money received from this is invested in organizing the production of new goods.
TRADE WAR- economic rivalry between firms different countries leading to the restriction of the rights to import goods from a "hostile" country. Previously, trade wars were usually accompanied by real hostilities.
TRADING DISCOUNT- the manufacturer's payment to the merchant for organizing the sale of the goods made by him.
UTOPISTS- scientists who believed that it was possible to design an ideal society and build it in real life.
FINANCIER- a person whose main source of income is the provision of money for the organization of commercial activities of other citizens or firms. In addition, financiers are involved in organizing the collection of revenues and the implementation of expenses of firms and the state.
SELF CALCULATION- a way to organize the activities of enterprises in countries with public ownership on the basis of some of the same principles that are used in countries with a predominance of private ownership.
PRICE- the total amount of money that must be paid in order to receive a product or service.
PRIVATE PROPERTY- property of any kind, belonging to an individual or an association of people, and the size of the property of each owner is precisely known, and he can do whatever he wants with his property: sell, donate, bequeath to children.
A CHECK is a substitute for money, in the form of an order to the bank to pay money to the one who brings this check to the bank. A check can only be written by someone who has previously deposited an amount of money in this bank and received a checkbook from the bank.
ECONOMIC INTERESTS- the aspirations of people in the field of economics, usually aimed at making their lives more comfortable and reliable.
ECONOMIC REGULATORS- methods of non-team management of the activities of people and commercial firms based on their economic interests.
EXPORT OF GOODS- export of goods manufactured in a given country outside its borders for the purpose of selling to citizens and firms of other countries.
EMBARGO- a ban on the export of goods to certain countries. EMISSION - release of funds into circulation.
Economics as a Science
"Economics is the science that studies human behavior in terms of the relationship between goals and limited means that allow for alternative uses." Economic theory is closely related to many other sciences: philosophy, psychology, history, demography, statistics, mathematics, jurisprudence, etc. From the point of view of the object of research, the sections of economic theory can be conventionally designated as "microeconomics" and "macroeconomics". Microeconomics is the analysis of the causes, patterns and consequences of the functioning of individual entities in a market economy (for example, an industrial firm, family farm etc.). Macroeconomics examines the aggregate indicators of income, employment, price dynamics, determines the laws of state economic policy.
Economic needs, resources and benefits
In turn, the economic benefit is material and non-material items, or rather the property of these items, capable of satisfying economic needs.
A resource is a means that allows you to obtain the desired result with the help of certain transformations.
Resources are subdivided into: - economic (functioning) - potential (not involved in the economic turnover)
Economic resources include: - natural resources - labor (population of working age) - material (all man-made means of production that are the result of production) - financial (money that society is able to allocate for the organization of production) - information (scientific, scientific technical, design, statistical, technological, informational information, as well as other types of intellectual values necessary to create an economic product)
Elasticity of demand
Elasticity of demand allows you to measure the degree of customer reaction to changes in prices, income levels or other factors. Calculated using the coefficient of elasticity.
Distinguish between price elasticity of demand and income elasticity of demand.
Price elasticity of demand shows the percentage change in the value of demand when the price changes by 1%. The following factors influence the price elasticity of demand:
· Availability of competing products or substitute products (the more there are, the greater the opportunity to find a replacement for the more expensive product, i.e. the higher the elasticity);
· Invisible for the buyer change in the price level;
· Conservatism of buyers' tastes;
· The time factor (the more time a consumer has for choosing a product and thinking, the higher the elasticity);
· The share of the product in the consumer's income (the greater the share of the price of the product in the consumer's income, the higher the elasticity).
Depending on these indicators, a distinction is made between:
Inelastic demand (Ep (D)< 1) – рыночная ситуация, при которой изменение цены на 1 % вызывает незначительное изменение объема (QD).
· Elastic demand (Ep (D)> 1) - a market situation in which a change in P by 1% (Dp = 1%) causes a significant change in QD.
· The unit elasticity demand (Ep (D) = 1) is a market situation in which a 1% change in price causes a 1% change in QD.
· Absolutely inelastic demand, meaning the absolute insensitivity of the volume of demand to price changes Ep (D) = 0): a change in P by 1% or more does not affect the change in QD.
Income elasticity of demand shows the percentage change in the amount of demand when income changes by 1%. It depends on the following factors:
· The importance of the product for the family budget.
· Whether the product is a luxury item or a necessity.
· Conservatism in tastes.
By measuring the income elasticity of demand, you can determine whether a given product is classified as normal or low value. Most of the consumed goods are classified as normal. With the growth of income, we buy more clothes, shoes, high-quality food, durable goods. There are goods for which demand is inversely proportional to consumer income. These include all secondhand products and some types of food (cheap sausage, rotten apples).
Market, market system and their variety
The market is a collection of transactions for the purchase and sale of goods. The market in its development has passed a path that lasts more than 30 thousand years. The very first definition of a market is an area, a public place for the purchase and sale of goods, i.e. goods and services. The market is a system of relations between buyers and sellers, i.e. it is a system of relations between supply and demand. Conditions for the emergence of the market: 1 The needs of people in goods. 2 Limited resources production-labor, land and other material means of production. 3. Social division of labor, which increases the efficiency of production and creates a material basis for commodity exchange. 4. The economic isolation of commodity producers within the framework of ownership - initially communal, and then private. 5. The independence of commodity producers, his freedom as entrepreneurs. Market functions: 1 Informational. Its essence lies in the fact that the market, like a computer, collects, processes and transmits and issues information within the economic territory that it covers. 2. Intermediary. The market connects in unified system economically isolated producers and consumers. As a result, sellers and buyers find each other. 3. Regulatory. The market provides answers to the questions: What to produce? How to do it? Who is it for? 4. Pricing function. The market recognizes only publicly necessary costs and, accordingly, public prices, which reflect the needs of the buyer. Stimulating. The benchmark of market prices for the social level of costs, for taking into account the demand of consumers, encourages the product to save its individual costs and present the goods to the market that the buyer needs. Constructively destructive. The market ensures the change in all economic proportions between industries and regions. A vivid and vivid example of this is the restructuring of the economy in Russia. 7. Improving function (cleaning the market from uncompetitive manufacturers) 8. Differentiating. The market enriches some producers and ruins others.
There are 2 kinds of communication between market agents: A market transaction can be viewed from the economic point of view, in the form of an act of commodity-money circulation. The economic interest of the seller is to exchange the goods for the corresponding amount of money, and the buyer is to purchase the useful thing he needs for money. And from the legal point of view, a market transaction means an action of citizens and legal entities that takes the form of a purchase and sale agreement. There are markets: local (market within a village, city), national, world. From the point of view of economists, there is a market for resources and consumer goods. In turn, they are subdivided into the consumer market, the market for the means of production, the market for land, real estate, labor, services, currency, insurance, information.
Money, functions of money
The essence and function of money. In modern economic theory, the following 4 functions of money are distinguished: 1. A medium of circulation when money is used to buy goods and services. Money here acts as technical means through which the exchange of goods and services is carried out. As a medium of circulation, money is absolutely liquid, i.e. quickly realizable in economic life. 2. A measure of value when money is used as a unit or scale for measuring the relative prices of dissimilar goods and services. Money is used as a unit of account for the valuation of goods, services, assets. The value of goods is expressed in prices, and prices are measured in terms of money. 3. A store of value. As the most liquid property, money is a very convenient form of wealth storage; money is withdrawn from circulation and acts as a store of value. In the early stages of the development of a commodity economy, such withdrawal of money from circulation turned it into a treasure, a treasure. 4. Instrument of payment. In this function, money, first of all, serves credit relations and acts as a medium of exchange, as well as a measure of value. Money as a means of payment functions when goods are sold on credit and outside the sphere of commodity circulation.
Entrepreneurship
Entrepreneurship, business- an independent activity carried out at its own risk, aimed at the systematic receipt of profit from the use of property, the sale of goods, the performance of work or the provision of services by persons registered in this capacity in the manner prescribed by law. The efficiency of entrepreneurial activity can be assessed not only by the size of the profit received, but also by the change in the value of the business (the market value of the enterprise). Entrepreneurship, business is the most important attribute of a market economy, permeating all its institutions.
It can be carried out by a legal entity or directly by an individual. In Russia, as in many countries, in order to conduct business, an individual is required to register as individual entrepreneur.
Entrepreneurship can be done in different areas. In addition to general entrepreneurship, social and technological entrepreneurship is distinguished. Sources of start-up capital for starting a business can be: loans (debt financing - in a bank or from friends), gratuitous assistance (grants or subsidies), investments (venture funds or business angels - equity financing). In addition, to help start-up entrepreneurs, there are government and public organizations, technoparks and business incubators. However, entrepreneurship is not easy, and most new businesses fail.
An absolute advantage- the ability for a country to produce goods at lower costs (volumes of involved factors of production) in comparison with other countries (trading partners).
Prepaid expense- the amount of money issued against forthcoming payments for material values, work performed and services rendered.
Advice- the official notification of the bank on the execution of the settlement operation, sent by one counterparty to another; is especially widely used by banks in mutual settlements.
Autarky- the policy of voluntary or forced isolation of the country from the world market, economic isolation of the state.
Holdings- 1) assets, property; 2) the client's funds in the bank.
Aggregation- combining individual units or data into a single indicator. For example, all prices for individual goods and services form one general price level, or all units of production are aggregated into a real net national product.
Market aggregation- an action opposite to market segmentation, or a strategy by which the firm views the entire market as a homogeneous area and standardizes marketing activities.
Agio- excess of market rates of banknotes, bills of exchange or securities in comparison with their face value.
Acquisition- acquisition of an enterprise by a shareholder or a group of shareholders by buying up all shares of this enterprise on the stock exchange.
Letter of credit- order to the bank to pay a certain amount to an individual or legal entity upon fulfillment of the conditions specified in the letter of credit; a monetary, registered document issued by a bank to a person who has deposited a certain amount and wants to receive it in whole or in parts in another city within a certain time.
Assets- 1) property of an individual or legal entity; 2) part of the balance sheet.
Acceptance- agreement to accept the offer of the counterparty to conclude an agreement; consent to payment of the payment request for settlements through the bank.
Excise tax- a type of indirect tax, mainly on consumer goods, as well as on services. Included in the price of goods or service charges.
Joint-Stock Company- an enterprise created on the basis of a voluntary association by citizens and (or) legal entities of their property by issuing shares. Distinguish open and closed joint stock companies.
Stock- a security that certifies the ownership of a share in the capital of a joint-stock company and gives the right to participate in its profits, and in certain cases (ordinary share) to participate in the management of an enterprise.
Ordinary share (simple)- a share giving the right to participate in the management of a joint stock company and receive a dividend.
Preferred share- a share that does not give the right to vote at a meeting of shareholders, but gives the right to a fixed dividend paid as a priority.
Alpari- correspondence of the exchange rate of securities or the market rate of currencies to their par.
Alternative cost- the cost of producing a good or service, measured in terms of the lost opportunity to engage in the best available alternative activity that requires the same time or the same resources.
Depreciation deductions- deductions of part of the cost of fixed assets to compensate for their depreciation (for full restoration).
Annuities- the type of state long-term loan, according to which the creditor annually receives a certain income (rent), set with the expectation of permanent repayment of the capital amount of the debt, together with interest on it.
Antitrust Policy- state regulation aimed at demonopolizing the economy and preventing the emergence of monopolies.
Rent- transfer by the owner of his property for a predetermined time for use to another person, who in exchange undertakes to regularly pay the owner certain sums of money, called rent or annuity.
Range- a set of goods, products or services, specified by varieties, brands, sizes.
Auditors- organizations (officials) checking the state of the financial and economic activities of enterprises and associations.
Auction- open auction, in which the ownership of the property being sold is transferred to the buyer who offered the maximum amount during the auction.
"By-back"- a long-term commodity exchange operation, in which the supply of machinery and equipment is carried out on credit with subsequent payment for the products produced with their help.
Balance- a system of indicators that characterize the state of the means of production at a certain date in monetary terms, both in terms of composition (asset) and their sources, intended purpose and terms of return (liability). They are subdivided into a system of consolidated (payment, trade, settlement, etc.) and accounting balances.
Bank- financial institution attracting funds from legal entities and individuals and placing them on its own behalf on terms of repayment, urgency and payment.
Commercial bank- a private enterprise providing credit and cash services to businesses and individuals.
Bank Central- a state bank that manages the entire monetary system of the country, which has a monopoly right to issue money; keeps temporarily free funds and required reserves of commercial banks.
Bank reserves- funds of commercial banks held in a special account with the Central Bank, plus bank cash.
Bank interest- "price" of money, payment for the use of money taken on credit.
Banknotes- 1) bank notes, a bill for a banker; 2) paper money issued by the Central Bank.
Bankrupt- an enterprise that is unable to pay off its obligations with creditors; declared insolvent and closed.
Barter- a balanced and valued exchange of goods, carried out without attracting money.
"Escape from money"- the desire of people and firms to avoid the accumulation and storage of unstable currency, depreciating money through their quickest transformation into material values, i.e. through the purchase of movable and immovable property.
Poverty- the standard of living of the family, at which its income does not allow to cover the costs of meeting even the most basic material needs, i.e. turn out to be below the subsistence level.
Non-cash funds- a form of making monetary payments and settlements, in which the physical transfer of banknotes does not occur, but simply records are made in special books for accounting for monetary transactions.
Unemployment- social economic phenomenon when part of the economically active population cannot find work.
Business- economic activity aimed at making a profit.
Business plan- substantiation of the goals of the new case and determination of ways to achieve them. Used as the main document to justify investments.
Stock exchange- the form of the market (institution) in which securities are traded (stock Exchange), goods (commodity exchange), foreign currency (currency exchange).
Exchange quotation- prices of commodities of exchange trade or prices of securities registered and published by the quotation commission of the exchange.
Bonitet- solvency, the ability of the borrower to repay the loan.
Bonification- 1) a markup to the price of goods, the quality of which is higher than that stipulated by the standard; 2) a government subsidy that allows you to reduce the amount of interest on a loan provided to certain categories of borrowers.
Booms- promissory notes issued by the state treasury, individual institutions and enterprises.
Bonus- remuneration for the rendered commission services. The amount of the bonus is determined as a percentage of the value of the sold (exchanged or purchased) goods.
Broker- an exchange intermediary who buys goods on behalf of the client and for his money.
"Bull"- a speculator who buys or keeps previously purchased goods or securities in anticipation of a price increase.
Family budget- the structure of all family income and expenses for a certain period of time (month or year).
Budget deficit- the amount of excess of government spending over government revenues.
All in- the risk associated with the possibility of either losing everything or gaining a lot.
Gross national product- a macroeconomic indicator characterizing the volume of national production. It is defined as the sum of market prices of all final products produced in the national economy for the year.
Valorization- an increase in the price of goods, the rate of securities as a result of measures taken by the government.
Currency- 1) the monetary unit of the country; 2) banknotes of foreign states and credit instruments of circulation and payment, expressed in foreign currency units (bills of exchange, checks, etc.) and used in international settlements.
Exchange rate- the price of the monetary unit of one country, expressed in the monetary unit of another country.
Foreign exchange intervention- operations of the Central Bank to buy and sell the currency of their country in order to influence the exchange rate.
Warrant- an additional facility issued together with a security and entitling to additional benefits (for example, the right to purchase a certain number of ordinary shares of the same issuer after purchasing its bonds).
Voucher- 1) a privatization check issued in the course of privatization for the purchase of shares in privatized enterprises; 2) written evidence, order, guarantee or recommendation.
Veblen effect- a phenomenon described by the American economist T. Veblen in his book The Leisure Class Theory (1899), which occurs when, as a result of a fall in the price of a product, some consumers decide that this was due to a deterioration in its quality and reduce the consumption of this product.
Promissory note- a security (promissory note, mortgage) containing an unconditional monetary obligation to pay a certain person or bearer of a bill of exchange of a certain amount at a certain time.
Venture companies- high-tech research and development organizations, with the help of which risky projects are implemented (in order to maximize the resulting profit).
Complementary products- goods for which there is an inverse relationship between the price of one good and the demand for another, namely: a decrease (increase) in the price of one good leads to an increase (decrease) in demand for another good.
Interchangeable goods- goods that can satisfy the same need; at the same time, a decrease (increase) in the price of one product leads to a decrease (increase) in demand for another of the interchangeable goods.
External effects- the effects of production or consumption of a good, the impact of which on third parties, who are neither buyers nor sellers, is not reflected in any way in the price of this good.
External public debt- debt of the state on outstanding external loans and unpaid interest on them.
Reproduction- continuous renewal production activities on the same or expanded scale.
Secondary market (securities)- a market on which securities are resold after their initial sale, distribution, placement by issuers. Secondary market agents are usually banks and firms that specialize in the sale of securities.
Revenue- funds received (received) by an enterprise, firm, entrepreneur from the sale of goods and the provision of services.
Guarantee- guarantee; ensuring the fulfillment of obligations. For example, a buyer presents a bank guarantee if the seller doubts his solvency.
Hyperinflation- the accelerating growth of inflation, in which the value of money falls so quickly that it cannot fulfill its main economic functions - a means of payment and especially a means of preserving value (wealth). The formal criterion of hyperinflation was introduced by the American economist F. Kegan, who proposed to consider the beginning of hyperinflation the month in which the rise in prices for the first time exceeded 50%, and the end - the month preceding the one in which the rise in prices falls below this critical level and does not reach it again at least least throughout the year.
Horizontal merge- merging into one firm or taking under a single control of two or more enterprises that carry out the same stages of production or produce the same product.
"Hot money"- money capitals that spontaneously move from one country to another in order to preserve value or extract speculative surplus profits.
State regulation of the market- government intervention in the functioning of market mechanisms, impact on the economy through administrative (legislative acts and the actions of the executive authorities based on them) and economic (monetary and financial, monetary, fiscal) methods and levers.
Government loans- the main form of public credit, which is a credit relationship in which the state acts mainly as a debtor (in this case, the debt is included in the amount of public debt).
Finished products- products of the main or auxiliary workshops intended for outsourcing.
Gradualism- an economic policy aimed at a slow decline in inflation over a long period of time by managing aggregate demand and without prejudice to employment.
Production possibilities frontier- an indicator of the maximum possible volume of output of a certain good or type of service that can be produced in the economy under the conditions of the existing level of use of available resources and knowledge, as well as for given volumes of production of other goods and services.
Grant- 1) deed of gift, a document on the transfer of rights; 2) subsidy, subsidy, scholarship.
G doubled - the notional value of business ties, the price of accumulated tangible assets, the monetary value of intangible capital (prestige, brand name, experience of business ties, stable clientele). For example, the Coca-Cola trademark is valued at $ 3 billion, Camel at $ 2.5 billion, and Stolichnaya vodka at $ 100 million.
Real estate - 1) property values that are not directly associated with land and are not attached to it (as opposed to real estate); 2) movable things, money, securities.
Debit - 1) the amount due to be paid or received as a result of economic relationships with a legal or natural person; 2) an account of receipts and debts to a given institution, organization.
Debtor - an individual or legal entity that has a debt to a certain enterprise, organization, institution, citizen.
Devaluation - official depreciation of the national currency against foreign currencies.
Mottos - means of payment in foreign currency intended for international settlements.
Declaration of income- a corresponding statement on the amount and sources of income, filled in by individuals and legal entities.
Decor- a discount on the price of goods provided by the seller to the buyer in case of early payment or due to the fact that the quality of the goods is lower than that provided for in the contract.
Demonopolization- elimination of the state or other monopoly dictating its terms to the market.
Dumping- junk export - sale of goods at prices below costs (prime cost); carried out, as a rule, on the external market.
Money supply- a set of generally accepted means of payment in the economy.
Money mechanism- the way in which changes in the money supply affect the economy.
Money market- a market for short-term lending and borrowing transactions, bringing together commercial banks, companies and the government.
Denomination- enlargement of the national monetary unit by exchanging old banknotes for new ones according to the established ratio in order to streamline monetary circulation, facilitate accounting and settlements in the country.
Money- any generally accepted means of payment that can be exchanged for goods and services and used to pay debts.
Deposit- all types of funds (money, securities, etc.) transferred by their owners for temporary storage to the bank with the granting of the right to use this money for lending. Deposits vary poste restante and urgent.
Depression- a very severe recession lasting more than a year. It is characterized by a stagnant state of the economy, low prices, weak demand for goods, mass unemployment, etc.
Gross domestic product deflator- price index for all produced goods and services used to obtain real gross domestic product. The importance of information and real GDP is due to the fact that it reflects the physical output of goods and services, and not their monetary value.
Deflation- the process of lowering the general level of prices in the country.
"Cheap money"- cheaper credit as a result of the expansionary credit policy carried out by the Central Bank in order to expand lending to the economy.
Decile factor- an indicator of uneven distribution of income between different groups of the population of the country; calculated as the ratio of the income of the richest 10% to the income of the poorest 10%.
Jobbers- dealers of the London Stock Exchange, carrying out transactions for the purchase and sale of securities in their own name and at their own expense.
Diversification- the simultaneous development of many directly unrelated industries; risk mitigation strategy by distributing investments among several risky assets.
Dividend- income (profit) received by the owner of shares based on the results of the activities of the joint-stock company.
Disagio- deviation of the exchange (market) rate of securities or banknotes downward compared to their nominal value; usually expressed as a percentage of par. The deviation of the rate from the nominal in the direction of increase is called screw up.
Dealing- a complex of trade, intermediary and business services.
"Dynamite"- a trader who sells unreliable goods or securities.
Discount - 1) the difference between the price at the moment and the price at the time of redemption or the price of the par value of the security; 2) the difference between prices for the same product with different delivery times.
Discounting- the method of determining the current equivalent of the value of money that will be received or spent in the future. If the discount rate is 10%, and the amount that will be received in a year is $ 110, then the current value of this amount will be $ 100. Discounting is the opposite of calculating compound interest. The discounting method is widely used to evaluate investment projects when costs and revenues are spread over time.
Distributor- a company that sells on the basis of wholesale purchases from large manufacturing firms.
Product differentiation- the process that occurs when a product sold on the market is not standardized.
Added value- the sum of the firm's sales minus the cost of materials and other intermediate goods used in the production of the goods sold. The value added does not include depreciation charges.
The household- the most important subject of economic relations; an economic unit that produces and consumes goods and services.
"Expensive money"- 1) the rise in the cost of loans as a result of measures taken by the Central Bank to curb economic growth and regulate inflation; 2) money, the purchasing power of which is increasing.
Subsidies- gratuitous financial assistance to compensate for any costs.
Income- the flow of cash and other receipts per unit of time. There are four main forms of income: rent, wages, interest and profit.
Subsidiary- a branch of the parent company controlled by the parent company. Control is ensured through the purchase of shares in the subsidiary.
Natural monopoly- an industry in which the production of goods or services rendered are concentrated in one firm for objective (natural or technical) reasons, and this is beneficial to society.
Natural unemployment rate- the rate of unemployment corresponding to the objectively attainable level of full employment in the economy (frictional and structural unemployment).
Market volume- the aggregate effective demand of buyers.
Mortgage- a document on the pledge by the debtor of real estate (land, buildings), which gives the creditor the right to sell the pledged at auction if he fails to pay the debt on time.
The law of diminishing marginal productivity- argues that with a larger amount of variable productive resource used (assuming that other resources and technologies are unchanged), the marginal product of that resource is likely to decrease.
Wage- the price of equilibrium in the labor market; income in cash or in kind received by an employee.
Overstock- excess of goods on the market; excess of supply over demand.
Land rent- 1) part of the surplus product created by agricultural workers, appropriated by land owners; 2) the main part of the rent paid to the owners of the land by its tenants.
Earth- a factor of production that is not reproduced, but is naturally available, but in a limited amount.
gold standard- a mechanism for the exchange of national currencies, based on the establishment of a fixed weight of gold (gold backing), to which a paper currency of a certain denomination was equated, and currency exchange based on the ratio of the size of such gold backing.
Economic free zone- a special economic zone (free trade zone), limiting the part of the national-state territory on which special preferential economic conditions for foreign and national entrepreneurs operate (privileges of customs, rental, currency, visa regime, etc.), which creates conditions for industrial development and investment of foreign capital.
Costs- the costs of the firm for the production of goods or services sold during a certain period of time; are equal to the sum of fixed and variable costs. As a rule, the amount of costs in terms of accounting differs from the level of economic costs.
Alternative costs- the alternative cost of any resource selected for the production of a good, equal to its cost under the best possible use case.
Accounting costs- the actual consumption of factors of production for the manufacture of a certain amount of products at their purchase prices.
Gross costs- the sum of fixed and variable costs.
Implicit costs- the cost of non-salable resources used in production.
Cost variables- costs, the total value of which for a given period directly depends on the volume of production and sales.
Fixed costs- costs, the amount of which in a given period does not directly depend on the size and structure of production and sales.
Production costs- cash costs of the enterprise for the means of production consumed in production and payment of wages.
Average costs- total costs per unit of output.
Clear costs- opportunity costs, which take the form of explicit monetary payments to suppliers of factors of production and intermediate goods.
Consumer surplus- the difference between the maximum amount that consumers are willing to pay for a certain amount of the product they need, and the amount they actually pay. It is measured as the area between the demand curve and the horizontal line at the market price level.
Producer surplus- the total effect of the excess of prices over the value of production costs. Measured as the area between the supply curve and the horizontal line at the market price level.
Moral wear- partial loss of the value of elements fixed capital due to the production of more productive or cheaper analogs.
Physical wear- gradual decrease in the efficiency (value) of elements fixed capital due to their constant use.
Import- the purchase of goods from a foreign counterparty and their import into the country.
Investment- the process of investing public or private capital in various sectors of the national economy.
Index- a relative indicator characterizing the ratio of socio-economic processes in time or space: prices of individual goods, volumes of various products, cost, etc.
Herfindahl index- an indicator of market concentration, calculated as the sum of the squares of market shares (in percent) of all market entities in its total volume.
Dow Jones is a popular industrial stock market index used on the New York Stock Exchange. It is calculated in dollars and consists of four indicators: the average share price of 30 industrial corporations, 20 transport companies, 15 utilities companies, and a composite rate for all 65 corporations combined.
Price index- an indicator that expresses the ratio of prices for goods and services for two different periods of time.
Indexing- automatic adjustment of the size of payments taking into account the inflation rate, calculated on the basis of the price index.
Indicative planning - non-directive, recommendatory, orienting planning at the state level.
Endorsement- giro - a transfer inscription on the back of a security, bill of exchange, check, certifying the transfer of rights under this document to another person. The person making the endorsement is called endorser(otherwise - girant).
Engineering- provision of engineering and construction and design services.
Collector- an employee delivering money from the company's cash desk to a banking institution.
Collection- a banking operation, through which the bank, on behalf of its client, receives, on the basis of settlement documents, the funds due to the enterprise and credits them to its account with the bank.
Innovation- the process of investing in the economy, ensuring scientific and technological progress.
Integration- the economic process of interaction between the national economies of two or more states on the basis of cooperation and the international division of labor.
Intense economic growth- economic growth, in which the volume of production increases through more efficient use of existing factors of production through the use of modern technologies, labor organization, etc.
Inflation- imbalance of supply and demand, manifested in the rise in prices; growth of the general level of prices in the economy and overflow of money circulation channels.
Cost inflation- an increase in the general level of prices as a result of a decrease in the aggregate supply due to an increase in wages and prices for raw materials. It is accompanied by a reduction in the real volume of production and employment.
Demand inflation- an increase in the general level of prices caused by the fact that the level of aggregate demand exceeds the level of aggregate supply in the economy of a given country. According to the monetarist point of view, excess demand arises from an increase in money offers.
Infrastructure- a complex of production and non-production sectors that serve production and provide conditions for the life of society (roads, communications, transport, education, health care).
Mortgage- pledging land or other real estate in order to obtain a loan, called mortgage loan.
Costing- calculating the cost of a unit of production or work performed.
Cadastre- a register containing a list of information about objects of taxation that are subject to direct real taxes. Such objects include land, houses, crafts.
Capital- one of the factors of production; all means of production and resources used to produce goods and services.
Fictitious capital- capital (stocks, bonds, mortgage sheets, etc.), which, unlike real (in the form of money and equipment), is not a value, but only the right to receive income.
Capital investments- a set of expenditures of material, labor and monetary resources aimed at the expanded reproduction of fixed assets in all sectors of the national economy.
Cartel- one of the forms of monopoly, which is an agreement between enterprises on the price, volume of production and division of the market for goods.
The quality of life- a generalizing indicator of the comfort of people's life, taking into account the level of material well-being, the amount of free time for personal needs, the degree of security of citizens, the economic situation in the country and many other factors.
Product quality- a set of technical, economic and aesthetic properties of products that determine its ability to meet certain needs in accordance with the purpose.
Quasi-money- cash in non-cash form, which are on time and savings deposits in commercial banks.
Quota- share in the production or marketing of products established by law or agreements.
Keynesian model- economic model(named for the English economist John Maynard Keynes), where prices and wages are fixed in the short term. The aggregate supply curve is represented by a horizontal line, as a result of which the real gross national product is completely determined by the level of aggregate demand.
Classic model- a labor market and aggregate supply model in which absolute flexibility in wages and prices results in a permanent situation of full employment. In this case, the aggregate supply curve is a vertical straight line.
Quantitative theory of money- a theory asserting that changes in the price level are based mainly on the dynamics of the nominal money supply.
Clearing- a system of non-cash payments by offsetting mutual claims and obligations.
Command economy- an economy in which all resources are allocated by central government bodies.
Commission- 1) an agreement under which one party (commission agent) undertakes, on behalf of the other party (principal), to conclude a transaction for a fee on its own behalf, but in the interests and at the expense of the principal; also the fee for making such a transaction; 2) in banking practice - a payment to a commercial bank for carrying out operations carried out on behalf of and at the expense of customers.
Limited partnership, limited partnership - a company in which, along with general partners, there are one or several contributors (limited partners) who bear the risk of loss only within the amount of their contributions and do not participate in the entrepreneurial activities of the partnership. Limited partners receive a portion of the partnership's profits due to their share in the contributed capital.
Commandite- a member of a limited partnership (limited partnership) who bears limited liability for the obligations of the partnership within the limits of its contribution (in contrast to the complementor - a personally responsible partner who is responsible for the obligations of the firm with all of its property).
Commerce- trade and trade and intermediary activities, participation in the sale or promotion of the sale of goods and services; in a broader sense - entrepreneurial activity.
Traveling salesman- a traveling agent of a trading company, offering customers a product according to his available samples, catalogs, etc.
Conversion - 1) the transfer of military enterprises to the production of civilian products or vice versa; 2) a change in the initial conditions of government loans, expressed in the repayment of interest, deferred payments, a change in the method of repayment of the loan, etc. (loan conversion); 3) exchange of one currency for another at the current exchange rate (currency conversion).
Currency convertibility- the ability to freely exchange national currency for foreign at the current rate, as well as pay for foreign goods and services with national currency (both domestically and abroad).
Final product- a part of the total social product minus intra-industrial consumption.
Competitiveness- the ability of a product or its manufacturers to win competition in the market with products manufactured by other firms, due to a more complete correspondence to the requirements or monetary opportunities of buyers.
Competition- rivalry between commodity producers for the best, more economically beneficial conditions for the production and sale of goods, for obtaining the highest profit.
Unfair competition- an economic competition in which non-market forms of competition are used: unfair advertising, dissemination of false information about competitors, illegal use of a trademark, etc.
Competition imperfect- an economic competition in which two or more sellers, having some (limited) control over the price, compete with each other for sales.
Competition is non-price- an economic competition in which competing firms use methods other than changing the sales prices for their products.
The competition is perfect net - an economic competition in the marketplace where many firms sell standard goods and none of them has sufficient share to control the market and prices.
Consulting- activities of special companies to advise manufacturers and consumers in the field of technological and economic activity.
Consignee- the owner of the goods sold abroad through the intermediary of a commission agent (consignee).
Consortium- a temporary voluntary agreement between several banks, firms, companies in order to coordinate actions for servicing a single capital-intensive project.
Smuggling- illegal movement through state border goods and other valuables.
Counterparty- each of the parties in the contract in relation to each other, taking on certain obligations.
Contract- a legally binding agreement, an agreement between two or more participants with mutual obligations for the supply and purchase of goods, the performance of certain work.
Controlling- accounting and control at the enterprise.
Controlling stake- a share of shares giving the right to manage a joint stock company.
Concern- diversified joint stock company; a form of association of many enterprises of different industries, trade, transport, services and financial institutions.
Concession- 1) an agreement or agreement for the commissioning by the state into operation of domestic or foreign firms industrial enterprises or plots of land with the right to extract minerals, build structures, etc .; 2) the enterprise itself, organized on the basis of such an agreement.
Conjuncture- the temporarily prevailing economic situation in the market, characterized by an appropriate ratio between supply and demand, the level of prices, stocks, order book in the industry, etc.
Cooperative- an enterprise (firm) created on the basis of a voluntary association by citizens of their property. A member of the cooperative takes personal labor participation in its activities.
Corruption- merging of state structures with the underworld, corruption and bribery of political and public figures, as well as government officials.
Indirect taxes- taxes on goods and services, set in the form of a premium to the price and paid by manufacturers. The final payer is the consumer who purchases goods at higher prices, including indirect tax.
Quoted- 1) have circulation on the exchange; 2) have a certain price (about currency, securities, goods).
Credit- a loan in cash or commodity form on terms of repayment and usually with the payment of interest.
Laffer curve- a curve showing the relationship between tax rates and the volume of tax revenues to the state budget. Allows you to identify the tax rate (from 0 to 100%) at which tax revenue reaches its maximum. Named for the American economist.
Lorentz curve- a curve illustrating the distribution of income in the economy. The total percentage of families (income recipients) is measured along the abscissa, and the total percentage of income is measured along the ordinate. Named for the American economist.
Production Capability Curve- a curve showing the maximum amount of any commodity that can be arbitrary in a certain economic system for a given output of all other goods, limited resources and a given technology.
Cross course- the ratio between two currencies, which is determined on the basis of the rate of these currencies in relation to any third currency.
Promotion rate- the selling price of a share, determined by the ratio of supply and demand and depending on the amount of dividends, as well as on the stability of the position and commercial prospects of the joint-stock company.
Courtship- remuneration to a broker for mediating an exchange transaction.
Lag- a gap in time between two phenomena or processes that are in a causal relationship.
Phillips curve- a curve describing the relationship between the unemployment rate (on the abscissa) and the annual growth rate of the price level (on the ordinate). Named for the English economist.
Label- any product label indicating the country where the product is made, the manufacturer, its trademark or brand name, etc.
Liberalization(economy, prices) - expanding the freedom of economic action of business entities, lifting restrictions on economic activity, liberating entrepreneurship. Liberalization of prices - the transition from state-set prices (state pricing) to a system of free market prices (market pricing).
Leasing- lease of fixed assets for a long time. Leasing companies buy equipment in order to rent it out. It is comparative new way investment financing based on the retention of ownership of the lessor.
Liquidity- the ability of material assets and other resources to quickly turn into money; the ability of an enterprise to pay its liabilities on time, to turn assets of the balance sheet into money to pay liabilities on liabilities.
Listing- a list of securities admitted to trading on the stock exchange.
License- a permit issued by state or local authorities to conduct certain economic activities.
Lloyd- British insurance company, one of the largest monopolies in Great Britain.
Lobby, lobbyism- private or public organizations influencing in the interests of certain groups of the population on decision-making by the legislative or executive branch.
Logo- specially designed original typeface of full or abbreviated company name.
Pawnshop- a credit organization that accepts valuable things (movable property) from citizens as a pledge and gives them loans for a period and in an amount that is only a part of the value of the pledged thing.
Lot- the term of the auction trade, meaning a unit or lot of goods put up for sale.
Lumpen- a person deprived of any (even movable) property.
Broker- an individual or legal entity acting as an intermediary in the sale and purchase of goods and securities. The broker can carry out transactions both at his own expense and at the expense of the client.
Macroeconomics- a section of economic theory that studies the economy as a whole.
Margin- bank profit, defined as the difference between the amount of interest charged and paid by the bank; a term also used in stock exchange and trading practice to denote the difference between prices and rates at the conclusion of transactions.
Marketing- the general name of a group of methods that make it possible to more accurately determine the real demands of consumers for certain goods, as well as influence the size of demand for these goods.
"Bear"- a speculator who believes that prices will go down soon, and sells contracts (plays on the decline).
Management- the system of organization and management of the enterprise; a section of economic science that studies the theory and practice of organizing and managing production and sales of products.
Mercantilists- scientists-economists, whose scientific school was formed in the 15th century. and reigned for almost two centuries. Mercantilists considered wealth only that which could be converted into money. They believed that the main sphere where wealth is born is the sphere of circulation and, in particular, trade. In their opinion, the state should strive to ensure that as much gold and silver as possible was deposited in the country: in this they saw the main source of the nation's power.
Microeconomics- a section of economic theory that studies economic processes at the level of an individual enterprise.
Minimal salary- the statutory minimum wage at enterprises of any form of ownership.
Economic and mathematical model- an equation or system of equations that reflects the basic properties of real objects, processes, systems. With its help, the researcher can carry out computational experiments on complex economic systems over which a direct natural experiment is impossible (or undesirable).
Monetarism- an economic theory based on the decisive role of the money supply in circulation in the implementation of the policy of stabilizing the economy, its functioning and development.
Monetary rule, monetary rule - a rule formulated by supporters of monetarism, according to which the amount of money in circulation should increase annually at a rate equal to the potential growth rate of real GDP.
Monitoring- a system of measures that allow you to continuously monitor the state of a particular object, system.
Monopoly- an enterprise with a dominant position in the market, which allows it to determine prices.
Monopsony- a type market structure, in which there is a monopoly of a single buyer of a specific type of product.
Moratorium- deferral of payments on debt obligations for a certain period or until the fulfillment of the corresponding condition.
Cash- funds used in cash circulation. In a modern economy, their volume is equal to the sum of coins and banknotes in the hands of the population and non-banking institutions.
Tax- a compulsory payment, a fee levied by the state or local authority from citizens (individuals) or enterprises (legal entities) on the basis of special legislation.
Inflation tax- a tax implicitly paid by consumers in an economic situation when the government is pursuing policies that cause inflation. Such a tax is preferable to the government as it is less visible than direct increases in tax rates.
Value Added Tax (VAT)- tax, which is the withdrawal to the budget of a part of the increase in value created in the process of production of works. The taxable value is established as the difference between the goods sold and purchased by the enterprise.
C.O.D- method of payment for the cargo (or postal item), in which the sender instructs the transport organization (or post office) to issue the cargo (postal item) to the addressee only on condition that the declared value of the cargo is paid.
Natural economy- a type of economy in which products are produced only for their own consumption, and not for sale or exchange.
Nationalization- transfer of property from private ownership to state ownership.
National income - a macroeconomic indicator that characterizes the amount of income of all owners of factors of production. It is determined by subtracting the amount of indirect business taxes from the net national product.
Inferior commodity- a product, the demand for which falls with the growth of consumer income.
Denomination - 1) face value indicated on securities, paper banknotes and coins; 2) the price of the goods indicated in the price list or on the goods itself.
Rate of return- the balance sheet profit of the company divided by the amount of equity, expressed as a percentage.
Normal profit- the concept used to designate the opportunity costs of the owner of capital; when calculating economic profit, it is included in costs.
Normative economics- that part of economics that deals with judgments about whether certain economic conditions and policies are good or bad.
Know-how- a set of technical, technological, commercial and other knowledge.
Bond- a kind of securities issued by the state and joint-stock companies as a debt obligation with a domestic loan. Grants the right to its owner to pay a nominal amount at a specified time and a specified annual interest.
General equilibrium- a stable state of a competitive economy, in which consumers maximize the value of the utility function, and competing producers maximize their profit at prices that ensure equality of supply and demand.
Public good- a good that, after being consumed by one person, is still available for consumption by other people (for example, national defense).
Joint-stock company- company, authorized capital which is divided into a certain number of shares. Shareholders bear the risk of loss only up to the value of their shares.
Closed Joint Stock Company- a joint stock company, the shares of which are distributed only among its founders.
Open Joint Stock Company- a joint stock company, which has the right to conduct an open subscription and sale of the shares issued by it.
Additional liability company- a society whose members are liable in the same multiple for all to the value of their contributions.
Limited liability company- a company that has a statutory fund, divided into shares, the size of which is determined constituent documents, and liable for obligations only to the extent of the value of their property. All property of the company belongs to its members, and it itself is in many respects similar to a joint-stock company.
Overbot- a jump in prices for a certain product due to large volumes of its purchases.
Oversold- a sharp drop in the price of goods due to the large volumes of their entry into the market.
Oligarchy- the political and economic dominance of a small group, as well as the group itself. The financial oligarchy is a group of the largest owners of industrial and banking monopolies, which actually dominate the economic and political life of the country.
Oligopoly- the type of market structure of the industry in developed countries, in which most of the sales are carried out by several firms, each of which is large enough to influence the level of market prices by their actions.
Open market operations- the instrument of monetary policy of the Central Bank, with the help of which the purchase or sale of government treasury bills and bonds is carried out to manage the money supply in the country.
Wholesale- transactions for the sale of goods in large quantities, when the buyer is the owner of a wholesale trading company supplying goods to shops or manufacturing firms.
Option- a conditional transaction - a contract under which one of the parties acquires the right (but not the obligation) to buy something in the future at a price determined on the day the contract is signed.
Offer- a formal offer to a certain person to conclude a deal, indicating all the conditions necessary for its conclusion. The person making the offer is called the provider.
Offshore centers- states that provide benefits in the field of financial and credit transactions in order to attract foreign capital.
Public Relations- varied activities to form a favorable public opinion about a company, product, service, etc.
Publicity- 1) fame, popularity, advertising; 2) the dissemination of information about the company and its products in order to stimulate demand.
Share- a contribution paid by organizations or individuals upon joining a partnership, cooperative or other share enterprise.
Parity(currencies) - the ratio of the purchasing power of various national monetary units, calculated on the basis of comparing the amounts of money required to purchase the same set of goods in each country.
Passive- a set of debts and obligations of the enterprise.
Patent - 1) a certificate certifying authorship and exclusive right to an invention; 2) a document granting any right or privilege (for example, the right to engage in trade).
Pauperism- poverty (mass) of the working masses, lack of the necessary means of subsistence; is a consequence of increasing exploitation of workers and unemployment.
Lump-sum- taken in bulk; general, without differentiation of constituent elements (tax, duty, payment, etc.).
Penalty- type of forfeit, sanction for non-fulfillment of monetary contractual obligations, which is charged for each day of delay as a percentage of the amount payable.
Variable costs- costs depending on the amount of products produced (costs of raw materials, materials, wages, etc.).
"Pyramid"- the way of profit used by financial companies. The funds received by the company from the sale of securities are partially paid in the form of dividends to those who have purchased the securities earlier, and are also directed to large-scale advertising and to the income of the financial company.
Floating exchange rates - a regime of freely fluctuating exchange rates based on the use of a market mechanism for foreign exchange regulation; one of the structural principles of the modern world monetary system.
Positive economics is the part of economics that studies facts and the relationships between them.
Positioning is the development of a marketing and advertising complex that ensures the offered product clearly differs from other products and a competitive position in the market, as well as in the minds of target consumers.
Purchasing power - the ability of a monetary unit to exchange for a certain amount of goods.
Expensive money policy - the monetary policy of the Central Bank, during which it sets high interest rates and sells government bonds on the open market to reduce the supply of money. Conducted in an inflationary environment.
Full employment - the level of employment of labor resources, characterized by a lack of cyclical unemployment. It is achieved if only frictional and structural forms of unemployment take place in the economy.
Fixed costs are part of gross costs that do not depend on production volumes.
Potential national income is the amount of real national income that could be produced if all factors of production were fully employed.
Consumer basket - a set of food and non-food products, housing and communal services, cultural and educational, medical and health-improving and other paid services necessary to meet the physiological needs of a person. The consumer basket is estimated at the current prices for goods and tariffs for services. The size of the minimum consumer basket is determined by the set of goods and services necessary for the reproduction of the labor force of an unskilled worker and his dependents.
Needs are those goods and services that people would like to have if they did not have to pay for them or to buy which there would be enough money.
A duty is a type of consumption tax levied on those individuals or legal entities that enter into economic relations with the state or among themselves.
The limiting value is an increment (increase) in the value of an economic indicator, due to an increase by one unit of the factor on which this indicator depends.
Marginal cost is the cost associated with producing an additional unit of output.
Marginal income is the additional income received by the firm when the volume of sales of products per unit increases.
Marginal product - an additional product or output created by an additional unit of a factor of production, provided that other factors of production remain constant.
Entrepreneurial activity is an independent initiative activity of citizens aimed at making a profit through the effective use of production factors.
Enterprise - an independent production and economic unit created for the purpose of making a profit; in market conditions, the company is called by the firm.
Price-list- a reference book of prices for products, goods or services.
Press release- information about the product, company or reseller, disseminated for possible publication in the press.
Surplus value- part of the value of goods produced in enterprises, which is created by the unpaid labor of hired workers.
Profit- economic value, defined as the difference between total revenue and total costs; excess of income over expenses.
Profit is normal- remuneration to the entrepreneur, sufficient to support activities in the chosen direction.
Economic profit- the difference between gross income (gross revenue) and economic costs release of a given volume of products.
Privatization- the process of transferring state and municipal property to private ownership for a fee or free of charge.
Living wage- the level of income required for a person to purchase an amount of food not lower than physiological standards, as well as to satisfy, at least at the lowest level, his needs for clothing, footwear, payment for housing, transport services, sanitation and hygiene items. Calculated based on the consumer basket for different groups population.
Labor productivity- an indicator of productivity, labor efficiency; characterizes the amount of products produced per unit of time, or the time spent on the production of a unit of output.
Prolongation- extension of the term of the contract, agreement, loans, etc.
Proportional tax- a tax, the average rate of which remains unchanged with an increase or decrease in the taxpayer's income.
Protectionism- foreign trade policy of the government aimed at increasing barriers to trade with other countries. The instruments of protectionism are tariffs and quotas, which are introduced to protect domestic producers from foreign competition.
Percent(loan) - payment for a loan; the price for the use of borrowed funds.
Direct taxes- taxes levied directly on the income or property of the taxpayer.
A pool is a temporary business combination.
Paragraph- unit of measurement when comparing relative values, expressed as a percentage. For example, in the base year the national income growth rate was 2.5%, and in the reporting year it decreased to 1.4%, i.e. by 1.1 points.
Splitting a pile- specialization, differentiation of labor activity, leading to the emergence and existence of its various types.
Ramburs- 1) payment of debt through a third party; 2) in international trade - payment for the purchased goods through the bank.
Rentier- a person living on an annuity - on interest from a capital loan or on income from securities.
Future spending- costs incurred by enterprises in the reporting period, but to be included in the cost of production in subsequent periods.
Real income- the number of goods and services that can be purchased with their nominal income.
Revaluation- the increase in the exchange rate of the monetary unit in relation to the currencies of other countries, carried out by the state in an official manner.
Regressive taxation- a taxation system in which the average tax rate decreases (increases) as the taxpayer's income increases (decreases).
Reinvestment- repeated, additional investments of funds received in the form of income from investment operations.
Renovation- the process of renewal of morally and physically worn out fixed assets.
Rent- income received from land, capital, property and does not require entrepreneurial activity from its recipients. The most common rent is land.
Profitability- one of the main indicators of the efficiency of the enterprise. It is calculated as the ratio of profit to the cost of production.
Report- an exchange futures transaction for the sale of securities (or currency) to a bank with the obligation of subsequent redemption after a certain period of time at a new, higher rate; the difference between the sale and purchase price is also called a report.
Restriction- 1) restriction of production, sale and export in order to inflate the prices of goods and obtain high profits; 2) restriction of loans from the Central Bank to the country's commercial banks.
Government debt refinancing- payment by the government to holders of maturing government securities of money received from the sale of new securities, or exchange of redeemed securities for new ones.
Recession- a decline in production or a slowdown in the rate of its growth for two or more quarters in a row.
Recipient- an individual, legal entity or state receiving any payment. The term is used, as a rule, in relation to countries that are objects of foreign investment (host countries).
Realtor- real estate agent.
Royalty- the form of the license fee, carried out as periodic percentage deductions, most often from the value of the products manufactured under the license.
Market- the sphere of exchange of goods and services between sellers and buyers.
Buyer's market- a market situation, characterized by the fact that the supply (of producers and sellers) of the goods exceeds the demand for it at current prices.
Seller market- a market situation, characterized by the fact that the demand for a product exceeds its supply.
Market economy- the way people cooperate with each other in the economic sphere, based on the commodity economy and assuming for everyone the freedom to choose a partner in the transaction and the freedom to set prices for their goods.
Racket- extortion of state or personal property, money through threats, blackmail and violence.
Balance- the difference between cash receipts and expenses for a certain period of time.
Swap- operation to exchange national currency for foreign with the obligation to reverse exchange after a certain period.
Cost price- the amount of costs (in monetary terms) for the production and sale of a unit of production or the entire volume of its output, for the performance of work and the provision of services.
Market segment- a set of consumers who react in the same way to the same product (service).
Seleng- one of the types of leasing. In this case, money is leased out without changing ownership. Only the profit earned from the transaction is taxed, not the entire amount (as opposed to a loan).
Certificate- 1) a document certifying this or that fact; 2) bonds of special government loans, as well as bearer securities issued by the bank.
Syndicate- one of the forms of monopoly - an association of similar enterprises, created for the purpose of marketing products through a common sales office, organized in the form of a special trade partnership, with which each of the syndicate participants concludes an agreement with the same terms for the sale of their products.
System of national accounts- a set of interconnected balance tables designed to calculate the volumes of consumption income, accumulation and capital expenditures.
Own- the publicly recognized and legally protected right of a citizen, company or state to own, use and dispose of any property or economic resource.
Aggregate supply- the sum of individual offers of many goods and services in the economy, measured by the volume of the national product.
Aggregate demand- the sum of individual surveys of all consumers in the economy for the entire volume of national production, characterizes the total costs in the economy.
Aggregate demand for money- the total amount of cash held by economic entities to complete transactions and to preserve wealth (savings). Depends on the level of national income and interest rates.
Social market economy- a social structure in which the state actively supports the development of free competition, helps to weaken conflicts between employees and employers, and also implements extensive programs to support socially unprotected groups of citizens.
Specialization- concentration of production in the hands of the most efficient employee (firm).
Spot- type of transaction for cash goods or currency, involving immediate payment and delivery.
Demand- the solvent need for the amount of goods that people want and can buy at a given price.
Demand for money for transactions, transactional demand is the amount of cash that households and firms want to have for use as a medium of exchange and which is determined by the level of nominal GDP.
Demand for Precautionary Money- the amount of money that people keep in cash for unforeseen expenses. Depends on the level of income.
Demand for money from assets, speculative demand is the amount of money that people want to keep as savings in order to benefit from transactions in financial and real assets. Depends on the level of the interest rate.
Average propensity to consume is the share of disposable income that households spend on consumption.
Average propensity to save- the share of disposable income that households save.
Elastic demand- demand, in which an increase in the price of a product leads to such a drop in the volume of demand that the total costs of buyers for this product decrease.
Demand is inelastic- demand, in which an increase in the price of a product leads to such a drop in the volume of demand that the total costs of buyers for this product increase.
Comparative advantages- the advantages of the country in the production of goods, due to lower opportunity costs in comparison with other countries.
Tax rate- the amount of tax per unit of taxation.
Interest rate- the amount of payment for the loaned money and material, paid by the borrower to the lender.
Stagnation- stagnation in all economic activity (in production, trade, etc.).
Stagflation- the state of the country's economy, characterized by stagnation with the simultaneous development of inflationary trends.
Insurance- a form of accumulation of funds and a reduction in the risk of expenses in the event of events undesirable for a person or a company, based on the assumption of the risk from economic transactions by the insurance company.
String- a set of lots at the auction, formed by goods of similar quality and having a common representative sample.
Structural crisis- disproportions covering two or more sectors of the economy and leading to structural unemployment.
Subvention- type of financial allowance of the state local authorities authorities; unlike a subsidy, it is provided to finance a specific event and is subject to return in case of violation of its intended use.
Subsidy- Irrevocable state monetary assistance to producers of goods, designed to stabilize the prices of their goods or to help avoid ruin and continue their activities.
Consumer sovereignty- the right of owners of any types of resources (land, real estate, labor, cash) to independently make decisions related to the disposal of these resources and their use.
Manufacturer's sovereignty- the right of a citizen or a company to independently determine what and in what quantity they will produce from the available at resources, as well as to whom and at what prices the manufactured goods will be sold.
Customs- a government agency that controls the import and export of all goods passing through the border of the country, including luggage, mail and all goods, including transit.
Customs duty- tax on goods passing through the border. Distinguish imported and export customs duties.
customs tariff- a list of customs duties systematized by groups of goods.
Bonus- remuneration paid as a percentage of profits to directors and senior officials of joint-stock companies, banks, insurance companies.
Targeting- setting targets for regulating the growth of the money supply in circulation.
Rate- a system of rates that determines the amount of payment for production and non-production services.
Thesaurus- accumulation (folding) of paper money by the population. Tezavratsiya gold in the broadest sense means the creation of gold reserves of countries by central banks.
Rate of increase- the ratio of the increase in the value of the economic indicator to its initial level.
Growth rate- the ratio of the value of an economic indicator at a given time to its initial value, taken as a reference.
Trend (trend)- stable properties inherent in the country's economy, enterprises. Based on the identified development trends, it is possible to draw conclusions about the course of economic processes in the future, that is, to carry out forecasting.
Tender- proposal for bidding, for the supply of goods, construction of facilities, performance of other works. Firms that receive a tender form fill it out, indicating their prices and other conditions. As a result of comparing the received documents, the organizers of the auction choose the best option and an appropriate contract for the performance of work is concluded with its applicant.
Shadow economy- a conventional name for economic processes not controlled by the state. The shadow economy includes: a) criminal, illegal activities, b) activities hidden from the tax system of the state, c) activities that are not subject to accounting due to its personal or family nature or lack of meters.
Product- everything that can satisfy the need and is offered to the market for the purpose of commodity exchange.
Full partnership- commercial organization, whose participants (general comrades) are engaged in entrepreneurial activities and are responsible for their property.
Commodity economy- a way of organizing the economic life of a society in which people specialize in certain types of activity in order to produce goods or services for exchange with each other and receive benefits from this.
Bargaining- an adversarial form of procurement (execution of a transaction), in which the buyer announces a competition for sellers.
Transaction costs- economic costs due to the process of concluding transactions, contracts. These include, for example, the cost of collecting information on prices, consumer preferences and competitors' intentions, etc.
Transfer- payments (expenses) of the state that do not lead to an increase in the national product and are carried out in the form of social security payments.
Trust- trust management.
Draft- bill of exchange - a written order of the lender (drawer) to the borrower (drawer) to pay a certain amount of money to a third party - the holder of the bill (remitter).
Trust- one of the forms of monopoly, an amalgamation of enterprises, firms, in which the enterprises included in it lose their independence and are subject to a single management.
Lesion- caused by various reasons for the loss of material and financial resources, loss or damage to property.
Accelerated depreciation- the procedure under which the government allows depreciation to be written off on a scale that significantly exceeds the actual depreciation of fixed capital; essentially means a business tax subsidy.
Service is an intangible good with value; is of a commercial nature, produced by doctors, lawyers, banks, financial companies, etc.
Authorized capital (fund) - funds that are transferred by the founders to the ownership of the organization created by them, which allows it to start its activities.
Accounting for bills - a banking operation consisting in the purchase by a bank (as well as other credit institutions or a broker specializing in this kind of operations) bills of exchange before the expiration of their payment.
Discount rate of interest - the rate of interest at which the central bank provides resources to commercial banks.
Factoring is one of the types of trading and commission operations when a bank or a company buys from its client the right to receive money from his debtor.
Physiocrats - French economists of the 18th century. (Francois Quesnay and others), who believed that the only source of wealth is nature. Unlike the mercantilists, they transferred the subject of economic science research from the sphere of circulation to the sphere of production, thereby laying the foundation for the scientific analysis of the reproduction of the social product under capitalism.
Phillips curve - the relationship between unemployment and inflation, which consists in the fact that inflation can be high only when the unemployment rate is low, and the rise in unemployment leads to a slowdown in inflation.
Finance - the system of education, distribution and use of funds of funds (financial resources), as well as the totality of funds at the disposal of the enterprise.
A firm is the main economic agent of a market economy, an enterprise (organization) that carries out entrepreneurial activity; production association of homogeneous or related enterprises.
Fiscal Policy - Aggregate financial arrangements state to regulate government expenditures and revenues, one of the most important levers of state regulation of the economy.
Forward (urgent) transaction is a transaction with the delivery of an object of purchase and sale to the buyer after a certain period, i.e. in future. On a commodity exchange, a forward transaction, in contrast to a futures transaction, presupposes the existence of actually sold (bought) goods.
Force majeure - the occurrence of extraordinary and inevitable circumstances that cannot be foreseen and which release from property liability for failure to comply with the terms of the contract (earthquakes, floods, war, etc.).
Freight - 1) payment to the owner of vehicles for the carriage of goods by sea or air or passengers; 2) the cargo transported on a chartered ship, as well as such transportation itself.
Frictional unemployment - unemployment associated with unemployment of an employee during the transition from one job to another.
Free trading is a policy of liberalizing foreign trade in order to create the most favorable conditions for it.
Franchising (franchising) is a contract between a company and a dealer (organization or person engaged in marketing), which determines the exclusive right of the latter to operate in a certain territory for a specified time and in a prescribed form.
Futures - an agreement for the delivery and payment of goods by a certain date at a price agreed upon at the time of the conclusion of the transaction, and not at the time of execution of the agreement.
Highring- medium-term lease of machinery and equipment without transfer of ownership of the goods to the lessee.
Hedging- operations of insurance of foreign exchange risk in the event of unfavorable changes in prices for transactions involving the delivery of goods in the future. Hedging is performed by counter-buying (selling) futures contracts.
holding- a company whose assets include controlling stakes in other enterprises (the latter become subsidiaries in relation to the holding company).
Price- the amount of money paid for a unit of goods; unit value expressed in money.
Securities- documents certifying the ownership of their owner to any property or money. Securities include: shares, bonds; checks, bills, certificates, etc.
Price discrimination- the practice of setting different prices for different units of the same product, not justified by any differences in costs.
Price elasticity- a concept that characterizes the intensity of the response of demand and supply to price changes.
Price Leadership- a situation where the increase or decrease in prices by the dominant firm in the oligopoly, called the price leader, is supported by all or most of the firms in the market.
Pricing- the process of setting prices for the company's products.
central bank- the main bank of the country, the main function of which is to control the money supply in the country's economy.
Economic cycle- recurring in the economy of any country recessions and rises in the development of production and the level of business activity.
Cyclical unemployment- unemployment caused by the economic downturn.
Charter- an agreement between the shipowner and the charterer for the lease of the entire vessel or its part for a specified voyage or period.
Check- a monetary document confirming a written order of the drawer to another person (check holder) at the expense of money previously transferred by the drawer to the payer.
Net national product (NPP)- an indicator calculated as the difference between the gross national product and depreciation charges.
Net profit- part of the profit remaining at the disposal of a commercial firm after taxes and other mandatory payments.
Net export- the difference between export and import.
Fink- a person who refuses to participate in a strike or is hired by a firm when its employees are on strike.
Econometrics (econometrics)- one of the directions of economic and mathematical methods of analysis. Econometrics combines in one study theoretical, economic, mathematical and statistical approaches to the object and brings the results of the analysis to obtain specific numerical results.
Economy - 1) all kinds of human activities that allow them to provide themselves with material living conditions; 2) the science of the effective use of limited economic benefits (resources) in order to maximize the satisfaction of people's needs.
Economic policy- measures taken by the state in managing the economy to achieve certain economic and social goals.
Economic profit- the amount of money that remains at the disposal of the company after the repayment of its external obligations and deduction by the entrepreneur (owner) at his disposal of normal profit.
Economic system- a set of organizational mechanisms through which limited resources are allocated in order to meet the needs of people.
Economic mechanisms- ways and forms of combining the efforts of people in solving the problems of ensuring the growth of their well-being.
The economic growth- change in the results of the functioning of the economy over time. Distinguish between extensive and intensive economic growth.
Economic commodity- a benefit, the possible scale of use of which is limited due to the insufficient quantity of this product to meet the needs of all comers and the receipt of which requires certain efforts on the part of people.
Export - 1) sale to other countries of goods produced by branches of the domestic economy; 2) the total quantity or value of the exported goods.
Extensive economic growth- economic growth, in which an increase in the volume of production of material goods and services is achieved through the use of more factors of production (an alternative to intensive growth through the effective use of existing factors of production).
Elasticity- the intensity of the response of demand or supply to price changes.
Embargo- a complete prohibition of trade relations with any state or the prohibition of the import (export) of certain goods to a specific country.
Emission- issue of money or securities into circulation; carried out by the state or under its control.
Issuer- the institution or enterprise that produces the issue.
Income effect- the share of change in the value of the presented demand for a cheaper product, caused by a corresponding increase in real income.
Placement effect- that part of the increase in the value of demand for a cheaper product, which was formed due to the replacement (replacement) of other goods with less expensive goods, which have now become relatively more expensive.
Economies of scale- an economic phenomenon, consisting in the fact that with an increase in the scale of production in one firm, the costs for each unit of goods decrease.
Efficiency- the relationship between the results and the costs incurred to achieve these results.
Entity- organization, firm, corporation, responsible certain signs established by the legislation of the respective country.
Explicit costs- cash payments of enterprises, firms to suppliers of factors of production, production resources, subject to direct cash payment.
"Pit"- a section of the premises of the exchange, the floor level of which is lower than in the entire trading floor. "Pit" is a place where members of the exchange are allowed to conclude exchange transactions; this place is also called the stock exchange ring, ring, floor.
Fair- regularly, periodically organized market, which operates in a certain place, at a fixed time, as well as a seasonal sale of one or more types of goods.
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