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From Citizendium, the Citizens' Compendium

Index

See the related articles subpage to the article on economics [1] for an index to topics referred to in the economics articles.

Definitions

• Balance of payments problem [r]: Lack of sufficient foreign exchange reserves to maintain the desired fixed exchange rate of a country's currency. [e]

• Comparative advantage [r]: The motive for trade that arises from the fact that for each trader there are things that he does best, and things that he can better obtain by trading. [e]

• Comparative statics [r]: The method of deducing the effects of an action upon an economic system by consideration of the difference between its prior and consequent static states - and without reference to transitional conditions. [e]

• Econometrics [r]: The use of mathematical techniques to derive economic relationships from economic statistics. [e]

• Economies of scale [r]: The factors that cause the cost of production of a product to fall as output of the product is increased. [e]

• Eurozone [r]: The twelve member states of the European Union that use the Euro as their common currency (Austria, Belgium, Finland, France, Germany, Greece, Italy, Ireland, Luxembourg and Portugal). [e]

• Learning curve [r]: A mathematical relationship between the cost of performing an action and the number of times it has been performed. [e]

• Marginal product [r]: The additional output of a product produced by the application of one additional unit of input. [e]

• Market power [r]: The ability of a supplier to exercise a degree of choice concerning the pricing of a product by restricting its supply. (see Competition policy) [e]

• Precautionary principle [r]: A policy of avoiding actions that have unknown consequences (variously interpreted). [e]

• Protection [r]: In international economics, a restriction upon trade by the imposition of quotas or tariffs. [e]

• Quality bias [r]: The tendency of consumer price indexes to overstate inflation because they take no account of the fact that technological advances enable consumers to enjoy a higher living standard without increasing their expenditure, which leads to an understatement of inflation-corrected GDP growth (see Price index). [e]

• Quota [r]: In international economics, a quantitative restriction upon the volume of imports of a product. [e]

• Systemic risk [r]: In financial economics, the risk that failure in one part of a financial system could impair the functioning of that system. [e]

• Tariff [r]: In international economics, the imposition of tax upon imports that is related to the value that is imported. [e]

• Terms of trade [r]: The ratio of the index of a country's export prices to the index of its import prices. [e]

• Washington Consensus [r]: An interpretation of the conditions required by the International Monetary Fund for financial assistance to developing countries. [e]