Economics in Credo: Terms and Concepts

National or international organization of manufacturers or traders allied by agreement to fix prices, limit supply, divide markets, or to fix quotas for sales, manufacture, or division of profits among the member firms.

Organized traders' exchange in which standardized, graded products are bought and sold. Worldwide, there are 48 major commodity exchanges that trade over 96 commodities, ranging from wheat and cotton to silver and oil.

In economics, direct utilization of goods and services by consumers, not including the use of means of production, such as machinery.

Something that is owed by a person, organization, or country, usually money, goods, or services. Debt usually occurs as a result of borrowing credit.

In economics, the allocation of a society's total wealth among various economic groups. Distribution, in that sense, does not refer to the physical marketing or circulation of goods, which is part of the process of exchange, but to the relative well-being and economic wealth of persons and groups.

Technique of economic analysis that expresses economic theory in terms of mathematical relationships and then tests it empirically through statistical research.

Prohibition by a country of the departure of ships or certain types of goods from its ports. Instances of confining all domestic ships to port are rare, and the Embargo Act of 1807 is the sole example of this in American history.

Value of all final goods and services produced within a country within a given time period, usually one year. GDP thus includes the production of foreign-owned firms within the country, but excludes the income from domestically-owned firms located abroad.

Legislation dealing with human beings in their capacity as workers or wage earners. The Industrial Revolution, by introducing the machine and factory production, greatly expanded the class of workers dependent on wages as their source of income.

In economics and politics, doctrine that an economic system functions best when there is no interference by government.

Division of economics concerned with the study of whole (aggregate) economies or systems, including such aspects as government income and expenditure, the balance of payments, fiscal policy, investment, inflation, and unemployment.

Condition in which the basic needs of human beings (shelter, food, and clothing) are not being met. This concept describes an empirical reality, both globally and in individual societies, but the meaning of which is contested. What constitutes poverty depends on how it is defined and measured. The main debates around definition concern the role of material resources, in particular income, and whether poverty should be understood in absolute or relative terms.

Materials that can be used to satisfy human needs. Because human needs are varied and extend from basic physical requirements, such as food and shelter, to spiritual and emotional needs that are hard to define, resources cover a vast range of items.

Government program designed to provide for the basic economic security and welfare of individuals and their dependents. The programs classified under the term social security differ from one country to another, but all are the result of government legislation.

Practice of engaging in business in order to make quick profits from fluctuations in prices, as opposed to the practice of investing in a productive enterprise in order to share in its earnings.

Level of consumption that an individual, group, or nation has achieved. The evaluation of a standard of living is relative, depending upon the judgment of the observer as to what constitutes a high or a low scale.

Branch of mathematics concerned with the collection and interpretation of data. Set of mathematical techniques used to organize, analyze, and interpret information that takes the form of numbers.

In classical economics, factors that are said to determine price, by correlating the amount of a given commodity producers hope to sell at a certain price (supply), and the amount of that commodity that consumers are willing to purchase (demand).

Traffic in goods. Conducted by gift, barter, or sale, trade is one of the most widespread of all social institutions.

Lack of paid employment. The unemployed are usually defined as those out of work who are available for and actively seeking work. Unemployment is measured either as a total or as a percentage of those who are available for work, known as the working population, or labor force. A major topic of social research during periods of mass unemployment in the twentieth century, unemployment arose with the growth of dependency on waged employment. It involves exclusion from paid employment but definitions and measurement remain contentious.

Classification, analysis, and interpretation of the financial, or bookkeeping, records of an enterprise.

The difference in value between the amount of money coming into a country and the amount going out of it, over a period of time.

Primarily the business of dealing in money and instruments of credit. Banks were traditionally differentiated from other financial institutions by their principal functions of accepting deposits—subject to withdrawal or transfer by check—and of making loans.

In law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations.

In finance, usually a formal certificate of indebtedness issued in writing by governments or business corporations in return for loans. It bears interest and promises to pay a certain sum of money to the holder after a definite period, usually 10 to 20 years.

One who acts as an intermediary in a sale or other business transaction between two parties.

Granting of goods, services, or money in return for a promise of future payment. Most credit is accompanied by an interest charge, which usually makes the future payment greater than an immediate payment would have been.

That part of the net earnings of a corporation that is distributed to its stockholders. Dividend disbursements are based on a percentage of the par value of the stock or are a certain sum per share of no-par-value stock.

Selling goods at less than the normal price, usually as exports in international trade. It may be done by a producer, a group of producers, or a nation.

Commerce conducted over the Internet, most often via the World Wide Web; the buying and selling of products through electronic services, especially over the Internet. E-commerce can apply to purchases made through the Web or to business-to-business activities such as inventory transfers.

Single currency of the European Union (EU), which was officially launched on 1 January 1999 in 11 of the then 15 EU member states (Austria, Belgium, Finland, France, Germany, Republic of Ireland, Italy, Luxembourg, the Netherlands, Portugal, and Spain).

In law, willful misrepresentation intended to deprive another of some right. The offense, generally only a tort, may also constitute the crime of false pretenses.

In finance, a highly speculative, largely unregulated investment device. Originating in the 1950s, the funds "hedge" by offsetting "short" positions (borrowing a security and then selling it at a higher price before repaying the lender) against "long" positions.

Assessment levied upon individual or corporate incomes.

In economics, persistent and relatively large increase in the general price level of goods and services. Its opposite is deflation, a process of generally declining prices. Inflation is an economic situation in which the average price level of all goods and/or salaries rises steeply, which affects most severely those with fixed or relatively unresponsive incomes, such as pensioners.

Charge for the use of credit or money, usually figured as a percentage of the principal and computed annually.

In law, an obligation of one party to another, usually to compensate financially. It is a fundamental aspect of tort law, although liability may also arise from duties entered into by special agreement.

Term that actually refers to two concepts: the abstract unit of account in terms of which the value of goods, services, and obligations can be compared; and anything that is widely established as a means of payment.

Tax on imported and, more rarely, exported goods. It is also called a customs duty.