Glossary of Economic Terms Pdf
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Microeconomics Exam Review Chapters 8 Through 12, 16, 17 and 19
MICROECONOMICS EXAM REVIEW CHAPTERS 8 THROUGH 12, 16, 17 AND 19 Key Terms and Concepts to Know CHAPTER 8 - PERFECT COMPETITION I. An Introduction to Perfect Competition A. Perfectly Competitive Market Structure: • Has many buyers and sellers. • Sells a commodity or standardized product. • Has buyers and sellers who are fully informed. • Has firms and resources that are freely mobile. • Perfectly competitive firm is a price taker; one firm has no control over price. B. Demand Under Perfect Competition: Horizontal line at the market price II. Short-Run Profit Maximization A. Total Revenue Minus Total Cost: The firm maximizes economic profit by finding the quantity at which total revenue exceeds total cost by the greatest amount. B. Marginal Revenue Equals Marginal Cost in Equilibrium • Marginal Revenue: The change in total revenue from selling another unit of output: • MR = ΔTR/Δq • In perfect competition, marginal revenue equals market price. • Market price = Marginal revenue = Average revenue • The firm increases output as long as marginal revenue exceeds marginal cost. • Golden rule of profit maximization. The firm maximizes profit by producing where marginal cost equals marginal revenue. C. Economic Profit in Short-Run: Because the marginal revenue curve is horizontal at the market price, it is also the firm’s demand curve. The firm can sell any quantity at this price. III. Minimizing Short-Run Losses The short run is defined as a period too short to allow existing firms to leave the industry. The following is a summary of short-run behavior: A. Fixed Costs and Minimizing Losses: If a firm shuts down, it must still pay fixed costs. -
Fund Accounting Training: Glossary
GLOSSARY Advance A type of internal borrowing (temporary or long term) between fund groups for which a due to/from must be set up. Agency funds Resources held by the institution as custodian or agent for students, faculty or staff, and organizations. No institutional equity in these funds. AICPA American Institute of Certified Public Accountants Annuity funds Funds established through a deferred giving contract. Payments to beneficiaries include both interest and a portion of principal. Upon the beneficiaries’ death, the funds revert to the agency. Auxiliary enterprise An entity that exists to furnish a service to students, faculty, or staff and charges a fee directly related to although not necessarily equal to the cost of the service; managed as essentially self‐supporting. Balance Sheet Financial statement reflecting self‐balancing classification of each fund group, including assets, liabilities, and fund balances. Board of Regents A group of persons, appointed by the Governor, whose powers are described in the charter or some legislative act that establishes the legal identity of the institution. Also, the governing board. Bond covenant Agreement between bondholders and the issuer, representing the board action that issued the bonds and setting forth related terms and conditions. Book value method Distribution of income among funds in an investment pool by book value of the funds. Capital asset Asset intended for long‐term, continued use or possession, such as land, buildings, and equipment. Synonymous with fixed asset or capital addition. Capital expenditure Expenditure intended to benefit future periods; addition to a capital asset. Capitalization policy Statement of criteria to determine which assets will be expended or recorded as capital assets. -
Marxist Economics: How Capitalism Works, and How It Doesn't
MARXIST ECONOMICS: HOW CAPITALISM WORKS, ANO HOW IT DOESN'T 49 Another reason, however, was that he wanted to show how the appear- ance of "equal exchange" of commodities in the market camouflaged ~ , inequality and exploitation. At its most superficial level, capitalism can ' V be described as a system in which production of commodities for the market becomes the dominant form. The problem for most economic analyses is that they don't get beyond th?s level. C~apter Four Commodities, Marx argued, have a dual character, having both "use value" and "exchange value." Like all products of human labor, they have Marxist Economics: use values, that is, they possess some useful quality for the individual or society in question. The commodity could be something that could be directly consumed, like food, or it could be a tool, like a spear or a ham How Capitalism Works, mer. A commodity must be useful to some potential buyer-it must have use value-or it cannot be sold. Yet it also has an exchange value, that is, and How It Doesn't it can exchange for other commodities in particular proportions. Com modities, however, are clearly not exchanged according to their degree of usefulness. On a scale of survival, food is more important than cars, but or most people, economics is a mystery better left unsolved. Econo that's not how their relative prices are set. Nor is weight a measure. I can't mists are viewed alternatively as geniuses or snake oil salesmen. exchange a pound of wheat for a pound of silver. -
Curious About Cryptocurrencies? Investors Need to Make Sure They Separate “Investing” from “Speculation” by Don Mcarthur, CFA®
Curious About Cryptocurrencies? Investors Need to Make Sure They Separate “Investing” from “Speculation” By Don McArthur, CFA® Bitcoin and other cryptocurrencies have received plenty of media coverage lately, and it is natural for investors to wonder about them. Even celebrities have become associated with Bitcoin publicity through social media. Interest has piqued to a point where there are even Exchange Traded Funds (ETFs) that invest in Bitcoin, giving investors the means to invest in the Futures market. After having performed in-depth research on Bitcoin and other cryptocurrencies, our position at Commerce Trust Company is that they should not currently play a role in client portfolios. As part of that research, Commerce Senior Vice President and Investment Analyst Don McArthur, CFA, put together a primer on the topic of cryptocurrencies in general. In the following commentary, he explains why Bitcoin at this stage is more about speculating than investing in something with intrinsic value. He also touches on how Blockchain networking technology not only supports cryptocurrencies, but many other industrial applications as well. We thought you would enjoy this commentary as McArthur shares his thoughts in a mind-opening Q&A. Q . What is Bitcoin and how did it start? A. Bitcoin is one of hundreds of digital currencies, or cryptocurrency, based on Blockchain technology. As an early mover, Bitcoin is by far the largest digital currency. Bitcoin was launched in 2009 by a mysterious person (or persons) known only by the pseudonym Satoshi Nakamoto. Unlike traditional currencies, which are issued by central banks, Bitcoin has no central monetary authority. -
New Insights on Retail E-Commerce (July 26, 2017)
U.S. Department of Commerce Economics Newand Insights Statistics on Retail Administration E-Commerce Office of the Chief Economist New Insights on Retail E-Commerce Executive Summary The U.S. Census Bureau has been collecting data on retail sales since the 1950s and data on e-commerce retail sales since 1998. As the Internet has become ubiquitous, many retailers have created websites and even entire divisions devoted to fulfilling online orders. Many consumers have By turned to e-commerce as a matter of convenience or to increase the Jessica R. Nicholson variety of goods available to them. Whatever the reason, retail e- commerce sales have skyrocketed and the Internet will undoubtedly continue to influence how consumers shop, underscoring the need for good data to track this increasingly important economic activity. In June 2017, the Census Bureau released a new supplemental data table on retail e-commerce by type of retailer. The Census Bureau developed these estimates by re-categorizing e-commerce sales data from its ESA Issue Brief existing “electronic shopping” sales data according to the primary #04-17 business type of the retailer, such as clothing stores, food stores, or electronics stores. This report examines how the new estimates enhance our understanding of where consumers are shopping online and also provides an overview of trends in retail and e-commerce sales. Findings from this report include: E-commerce sales accounted for 7.2 percent of all retail sales in 2015, up dramatically from 0.2 percent in 1998. July 26, 2017 E-commerce sales have been growing nine times faster than traditional in-store sales since 1998. -
The Political and Social Economy of Care in a Development Context Conceptual Issues, Research Questions and Policy Options
The Political and Social Economy of Care in a Development Context Conceptual Issues, Research Questions and Policy Options Shahra Razavi Gender and Development United Nations Programme Paper Number 3 Research Institute June 2007 for Social Development This United Nations Research Institute for Social Development (UNRISD) Programme Paper has been produced with the support of the International Development Research Centre (IDRC, Canada) and the Swiss Agency for Development and Cooperation (SDC). UNRISD also thanks the governments of Denmark, Finland, Mexico, Norway, Sweden, Switzerland and the United Kingdom for their core funding. Copyright © UNRISD. Short extracts from this publication may be reproduced unaltered without authorization on condition that the source is indicated. For rights of reproduction or translation, application should be made to UNRISD, Palais des Nations, 1211 Geneva 10, Switzerland. UNRISD welcomes such applications. The designations employed in UNRISD publications, which are in conformity with United Nations practice, and the presentation of material therein do not imply the expression of any opinion whatsoever on the part of UNRISD con- cerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. The responsibility for opinions expressed rests solely with the author(s), and publication does not constitute endorse- ment by UNRISD. ISSN 1994-8026 Contents Acronyms ii Acknowledgements ii Summary/Résumé/Resumen iii Summary iii Résumé iv Resumen vi Introduction 1 1. The “Invisible” or “Other” Economy: The Contribution of Feminist Economics 3 Making visible “the invisible” 4 From domestic labour to care 6 Accumulation, paid work and unpaid care work 8 Mixing “love” and “money”: Implications for the quality of care? 15 2. -
Journal of Econometrics Consumption and Labor Supply
Journal of Econometrics 147 (2008) 326–335 Contents lists available at ScienceDirect Journal of Econometrics journal homepage: www.elsevier.com/locate/jeconom Consumption and labor supply Dale W. Jorgenson a,∗, Daniel T. Slesnick b a Department of Economics, Harvard University, Cambridge, MA 02138, United States b Department of Economics, University of Texas, Austin, TX 78712, United States article info a b s t r a c t Article history: We present a new econometric model of aggregate demand and labor supply for the United States. Available online 16 September 2008 We also analyze the allocation full wealth among time periods for households distinguished by a variety of demographic characteristics. The model is estimated using micro-level data from the Consumer JEL classification: Expenditure Surveys supplemented with price information obtained from the Consumer Price Index. An C81 important feature of our approach is that aggregate demands and labor supply can be represented in D12 D91 closed form while accounting for the substantial heterogeneity in behavior that is found in household- level data. As a result, we are able to explain the patterns of aggregate demand and labor supply in the Keywords: data despite using a parametrically parsimonious specification. Consumption ' 2008 Elsevier B.V. All rights reserved. Leisure Labor Demand Supply Wages 1. Introduction employed, we impute the opportunity wages they face using the wages earned by employees. The objective of this paper is to present a new econometric Cross-sectional variation of prices and wages is considerable model of aggregate consumer behavior for the United States. The and provides an important source of information about patterns model allocates full wealth among time periods for households of consumption and labor supply. -
Measuring the Natural Rate of Interest: International Trends and Determinants
FEDERAL RESERVE BANK OF SAN FRANCISCO WORKING PAPER SERIES Measuring the Natural Rate of Interest: International Trends and Determinants Kathryn Holston and Thomas Laubach Board of Governors of the Federal Reserve System John C. Williams Federal Reserve Bank of San Francisco December 2016 Working Paper 2016-11 http://www.frbsf.org/economic-research/publications/working-papers/wp2016-11.pdf Suggested citation: Holston, Kathryn, Thomas Laubach, John C. Williams. 2016. “Measuring the Natural Rate of Interest: International Trends and Determinants.” Federal Reserve Bank of San Francisco Working Paper 2016-11. http://www.frbsf.org/economic-research/publications/working- papers/wp2016-11.pdf The views in this paper are solely the responsibility of the authors and should not be interpreted as reflecting the views of the Federal Reserve Bank of San Francisco or the Board of Governors of the Federal Reserve System. Measuring the Natural Rate of Interest: International Trends and Determinants∗ Kathryn Holston Thomas Laubach John C. Williams December 15, 2016 Abstract U.S. estimates of the natural rate of interest { the real short-term interest rate that would prevail absent transitory disturbances { have declined dramatically since the start of the global financial crisis. For example, estimates using the Laubach-Williams (2003) model indicate the natural rate in the United States fell to close to zero during the crisis and has remained there into 2016. Explanations for this decline include shifts in demographics, a slowdown in trend productivity growth, and global factors affecting real interest rates. This paper applies the Laubach-Williams methodology to the United States and three other advanced economies { Canada, the Euro Area, and the United Kingdom. -
Consumerism and Environmental Policy: Moving Past Consumer Culture
Consumerism and Environmental Policy: Moving Past Consumer Culture Bradley A. Harsch* CONTENTS Introduction ......................................................................... 544 I. Environmental Problems and Ways of Dealing With Th em ............................................................................ 548 A. Industrial Economy and the Environment ............... 548 B. Conventional Approaches to Addressing Environmental Problems ......................................... 550 C. Proposed Approaches to Addressing Environmental Problem s ................................................................ 552 1. Market-Based Approaches: Internalizing Externalities ...................................................... 553 2. Reducing Energy and Raw Material Input .......... 554 3. Proposed Approaches that Address Consum ption ..................................................... 554 II. Consum er Culture ........................................................ 555 A. The Historical Development and Critique of the Consum er Culture .................................................. 557 B. Definitive Aspects of Consumer Culture .................. 559 1. The Reification of Images .................................. 559 2. The Market as the Primary Means of Satisfying D esires .............................................................. 562 C. Advertising and Consumer Culture ......................... 566 1. Advertising and its Place in Society .................... 566 2. Our Incredulity ................................................. -
Public Goods in Everyday Life
Public Goods in Everyday Life By June Sekera A GDAE Teaching Module on Social and Environmental Issues in Economics Global Development And Environment Institute Tufts University Medford, MA 02155 http://ase.tufts.edu/gdae Copyright © June Sekera Reproduced by permission. Copyright release is hereby granted for instructors to copy this module for instructional purposes. Students may also download the reading directly from https://ase.tufts.edu/gdae Comments and feedback from course use are welcomed: Global Development And Environment Institute Tufts University Somerville, MA 02144 http://ase.tufts.edu/gdae E-mail: [email protected] PUBLIC GOODS IN EVERYDAY LIFE “The history of civilization is a history of public goods... The more complex the civilization the greater the number of public goods that needed to be provided. Ours is far and away the most complex civilization humanity has ever developed. So its need for public goods – and goods with public goods aspects, such as education and health – is extraordinarily large. The institutions that have historically provided public goods are states. But it is unclear whether today’s states can – or will be allowed to – provide the goods we now demand.”1 -Martin Wolf, Financial Times 1 Martin Wolf, “The World’s Hunger for Public Goods”, Financial Times, January 24, 2012. 2 PUBLIC GOODS IN EVERYDAY LIFE TABLE OF CONTENTS 1. INTRODUCTION .........................................................................................................4 1.1 TEACHING OBJECTIVES: ..................................................................................................................... -
Inflation, Income Taxes, and the Rate of Interest: a Theoretical Analysis
This PDF is a selection from an out-of-print volume from the National Bureau of Economic Research Volume Title: Inflation, Tax Rules, and Capital Formation Volume Author/Editor: Martin Feldstein Volume Publisher: University of Chicago Press Volume ISBN: 0-226-24085-1 Volume URL: http://www.nber.org/books/feld83-1 Publication Date: 1983 Chapter Title: Inflation, Income Taxes, and the Rate of Interest: A Theoretical Analysis Chapter Author: Martin Feldstein Chapter URL: http://www.nber.org/chapters/c11328 Chapter pages in book: (p. 28 - 43) Inflation, Income Taxes, and the Rate of Interest: A Theoretical Analysis Income taxes are a central feature of economic life but not of the growth models that we use to study the long-run effects of monetary and fiscal policies. The taxes in current monetary growth models are lump sum transfers that alter disposable income but do not directly affect factor rewards or the cost of capital. In contrast, the actual personal and corporate income taxes do influence the cost of capital to firms and the net rate of return to savers. The existence of such taxes also in general changes the effect of inflation on the rate of interest and on the process of capital accumulation.1 The current paper presents a neoclassical monetary growth model in which the influence of such taxes can be studied. The model is then used in sections 3.2 and 3.3 to study the effect of inflation on the capital intensity of the economy. James Tobin's (1955, 1965) early result that inflation increases capital intensity appears as a possible special case. -
Degrowth Through Income and Wealth Caps?
Degrowth through Income and Wealth Caps? Introduction Ecological collapse and extreme and growing economic inequality threaten human civilization as we know it. On the one hand, a number of planetary boundaries are being transgressed. As a consequence, the preconditions for human beings and other species to thrive are rapidly being undermined. On the other hand, economic wealth has to an unprecedented level been concentrated on a few hands while a very large number of people do not have the means to satisfy even their basic human needs (Gough 2017; Raworth 2017; Robinson 2014). Comparative studies into the links between economic growth, material resource use and carbon emissions have indicated that there is no evidence for an absolute decoupling of these parameters (Fritz and Koch 2016; O’Neill et al. 2018). Yet such a decoupling would be required for the rich countries to be able to meet the CO2 emission targets they have given themselves to keep climate change within certain limits. In this situation, approaches that deprioritize economic growth in policy-making are becoming increasingly popular. Above all, ‘degrowth’ scholars call for transitions towards socio-economic systems that would function within ecological boundaries through reductions in the matter and energy throughput of production and consumption patterns while being socially equitable. The eco-social policy instruments needed for such transitions – inter alia work sharing, time-banks, job guarantees, complementary currencies and debt auditing – are intensely debated. Frequent reference has also been made to minimum income schemes and maximum limits on wealth and income as policy tools that can potentially be used to tackle issues related to social inequality during a degrowth transition (e.g., Alexander 2015; Buch-Hansen 2014).