CAPITAL (RESOURCES) - Goods
made by people and used to produce other goods and services. Examples include
buildings, equipment, and machinery.
CHOICE- What someone must make when faced with two or more alternative uses of a resource (also called economic choice).
CIRCULAR FLOW - A model of an economy showing the interactions between households and business firms as they exchange goods and services and resources in markets.
COLLATORAL SECURUTY - Anything of value that is acceptable to a lender to guarantee repayment of a loan.
COMMAND ECONOMY - A mode of economic organization in which the key economic functions are principally determined by government directive. Also called a "centrally planned economy."
COMPETITION - The effort of two or more parties acting independently to secure the business of a third party by offering the most favorable terms.
COMPLIMENTARY GOODS (COMPLIMENTS) - are the pair of goods which are consumed together for the same purpose. (A good or service that is in joint demand with another )
CONSUMERS - People whose wants are satisfied by consuming a good or a service.
CONSUMPTION – Using up of goods or services. (In macroeconomics, the total spending, by individuals or a nation, on consumer goods during a given period)
CONSUMER
SPENDING - The expenditure on purchase of
consumer goods and services for final consumption.
CORPORATION - A legal entity owned by stockholders whose liability is limited to the value of their stock.
COST OF PRODUCTION - All resources used in producing goods and services, for which owners receive payments.
CREDIT- The use of someone else's funds in exchange for a promise to pay (usually with interest) at a later date.
CRITERIA - Standards
or measures of value that people use to evaluate what is most important.
CONGLOMERATE
INTEGRATION - A
merger between two firms making different products (neither vertical or
horizontal integration) – ( diversification )
CONSUMER’
SOVEREIGNTY - Consumers’ ability to determine what is
produced by means of their purchase.
COST
BENEFIT ANALSYSIS - A method of assessing investment projects
which takes in to account social costs and benefits.
COST
PUSH INFLATION - The raise
in the general price level resulting from increases in the cost of production.
CREDIT
CREATION -
The process whereby banks increase the money supply by making loans.
CROSS
ELASTICITY OF DEMAND - A measure of responsiveness of demand for
one product to changes in the price of another product.
CUSTOMS
UNION - A Group of countries practicing free trade and
agree to impose a common external tariff on imports’ from other countries.
CYCLICAL
UNEMPLOYMENT - The
unemployment resulting from a lack of aggregate demand for the product leading to recession in the country. (Also termed as demand deficiency
unemployment).
CORPORATE
TAX -
The tax levied on the profits of
all companies after deducting allowances such as interests on loans and
depreciation of capital.
CAPITAL GAIN
TAX - The tax
levied on the increase in the value of certain assets between the time of their
purchase and the time of their sale. [There are exemptions for personal private
properties]
CURRENT YEAR - the year for which inflation is calculated.
COLLUSION - It is a method in which
oligopolists can turn itself into a monopoly is by colluding with other firm.
CAPITAL EMPLOYED - Money invested in or tied up in productive assets in a firm that
enable it to produce goods and services and generate revenues
CAPITAL INTENSIVE - A
production process that employs a significant amount of capital equipment
relative to labour.
CARTEL - A formal agreement
between a group of powerful producers to control the market supply and price of
their product. E.g OPEC (the Organization of the Petroleum Exporting Countries)
CENTRAL BANK - The main bank in an economy, responsible for managing the
stability of its national currency and money supply, and for regulating its
banking system.
CETERIS PARIBUS - A term meaning ‘all other factors being unchanged’.
CLOSED SHOP - This exists when trade
union membership is made a compulsory condition of a taking a job in a
particular workplace or organization.
COLLATERAL SECURITY - Security
taken by a lender against a loan, such as a valuable asset owned by the
borrower that the lender could sell to recover the value of the loan if the
borrower is unable to repay it.
COLLECTIVE BARGAINING - The process of negotiating pay and working conditions between
trade union representatives and employers.
COMMERCIAL BANK - A type of bank with individual and business customers that has
retail branches in many towns and cities.
COMMERCIAL LOAN - A bank loan to a firm, usually with a fixed repayment term and
interest rate.
COMMON STOCK - Also known as ordinary shares or equity, common stock are shares
issued by limited companies that allow their holders to vote on company
directors and policy at annual general meetings.
COMPARATIVE
ADVANTAGE – The ability of a country to specialize in
production of goods, in which it has a lower opportunity cost than other
countries.
COMPETITION POLICY - Government
policies to prevent and reduce anti-competitive behaviour and the abuse of
monopoly power.
CONSUMER COOPERATIVE - A business
organization owned by its customers and run for their mutual benefit.
CONSUMER DURABLES - Goods that
are consumed over a relatively long period of time such as a washing machine,
computer and mobile phone.
CONSUMER PRICE INDEX (CPI) - A
measure of inflation based on changes in the average price of a basket of goods
and services purchased by a ‘typical’ household and which expresses these
average prices as an index number series.