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Economics terms
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b i l j o i s s a c @ g m a i l . c o m , 9 4 9 6 3 7 0 8 9
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conomics Terms
ARBITRATION Referring dispute to disinterested party called
arbitrator for decision, which will be binding.
ANNUITY Payment of a fixed amount periodically for a limited time.
It is an investment on which the owner receives not only interest
on his money but also return of his capital.
BALANCE OF TRADE
The difference between the value of imports and exports. It is
favourable when the value of exported goods exceeds the value of
imported goods. If it is reverse balance is unfavourable.
BALANCE SHEET
Statements of accounts, generally os a business house prepared at
the end of a year, showing debits and credits under broad heads, in
order to find out the profit and loss positions in the outgoing
year.
BARTER Exchange of commodity with other commodities without the
interface of any form of currency.
BOND Document by which a government, a company or a person agrees
to pay a sum of money in a certain time.
BUDGET Annual estimate of expenditure and revenue of a country or a
subordinate authority like a corporation.
BILL OF EXCHANGE Written order by a drawer to pay sum on given date
ot named payee.
BUYER'S MARKET An economic phenomenon where there are more goods in
market than demanded and so the buyers can dictate the prices of
goods.
CLEARING HOUSE Place where officials of the banks meet daily to
exchange cheques drawn on the respective banks and settle the
account by the payment of balances only.
COOPERATIVE FARMING
Joint farming wherein farmers pool their land, capital and
resources and divide the produce at the end of the harvest in
proportion to their land put in the pool. The farmers retain their
proprietary rights.
CEILING ON LAND AND HOLDING
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of land.
DEATH DUTY (ESTATE DUTY)
A sort of tax imposed on the property inherited at death of its
previous owner.
DEVALUATION Government's step to reduce the value of its own
currency relatively to a foreign currency. It aims to increase
exports and reduce imports.
DEFLATION
A monetary state characterised by decrease in the supply of money
and bank deposits and falling profits, wages, incomes and
employment accompanied by unemployment and falling prices.
DEMONETISATION
The governmental measure of depriving metallic coins or paper
currency od specified denominations of its status money. It is
meant to unearth the hidden money which is unaccounted for purpose
of income tax assessment.
EXCISE DUTY Duty levied on goods manufactured within the
country.
FOREIGN EXCHANGE Transfer of money of one country to another.
INFLATION Increase in the quality of money in circulation without
any corresponding increase in goods; so, it leads to rising prices
spiral.
LAISSEZ FAIRE An individualistic theory advocating private
initiative in trade and non-interference by State in commercial or
business ventures.
LOCKOUT Closure of a factory by owners to force the workers to
accept the imposed terms.
MALTHUSIAN THEORY OF POPULATION
It states that the food supply increase in arithmetical progression
while population increase by geometrical progression resulting in
over-population.
OCTROI Tax imposed on articles coming inside a city.
PUBLIC SECTOR Applies to State enterprises or undertaking.
RECESSION An economic phenomenon characterised by excessive
production, less demand, tight money market.
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