Basic terms for the course “economic theory”

ALTERNATIVE (OPPORTUNITY) COSTS (opportunity (economic) costs) – monetary income that an economic entity sacrifices

BASE YEAR – the year taken as a basis when constructing price indices.

BUDGET DEFICIT - the amount of excess government spending over revenue in any given year.

BUDGET PROFICT - The amount of excess government revenues over government expenditures in any given year.

GROSS DOMESTIC PRODUCT (GDP, gross domestic product) is the total market value of all final goods and services produced in the economy of a given country within its territory during one year, regardless of the nationality of the manufacturer.

GROSS NATIONAL PRODUCT (GNP, gross national product) is the total market value of all final goods and services produced by the national economy during one year, regardless of location.

QUANTITY SUPPLIED (Qs) - the quantity of a given product that producers are willing to offer to the market at given prices, at a given time and in a given place.

QUANTITY DEMANDED (Qd) – the quantity of a given product that buyers are willing to purchase at given prices, at a given time and in a given place.

COMPLEMENTARY GOODS - goods for which there is an inverse relationship between the prices of one product and the demand for another.

INTERCHANGEABLE GOODS (substitute goods) are goods for which there is a direct relationship between the prices of one product and the demand for another.

GNP deflator is an indicator of the general price level, calculated as the ratio of the real volume of gross national product (GNP) to nominal GNP.

DEFLATION (deflation) - a decrease in the general price level; a process opposite to inflation.

VALUE ADDED – the difference between the cost of products produced by an enterprise (or industry) and the cost of purchased intermediate products.

LONG PERIOD (long run) - a period sufficient for a firm to change the volume of all factors of production it uses.

INCOME (revenue) - the total amount of money received by an economic entity during any period of time.

NATURAL RATE OF UNEMPLOYMENT – the level of unemployment in conditions of full employment in the economy.

OWKEN'S LAW (Okun's law) is an inverse relationship between the unemployment rate and the real volume of GNP, showing that an increase in the level of actual unemployment (U) relative to its natural level (U*) by one percent leads to a lag in real output by 2.5% .

LAW OF DEMAND - if the price of a product increases and all other parameters remain unchanged, then the quantity demanded for this product will decrease

LAW OF DIMINING RETURN (LAW OF DIMINING RETURN) - the principle according to which additional use of a variable resource with a constant amount of a constant resource leads, starting at some point in time, to a decrease in marginal returns or marginal product.

WAGE (wage) – the price of labor (labor services) per unit of time (hour, day, etc.).

COSTS - expenses of a company for the production of goods or services over a certain period of time.

CONSUMER SURPLUS (consumer's surplus) is the additional benefit from trade that the buyer receives. It is defined as the difference between the demand price and the equilibrium market price of the product

PRODUCER'S SURPLUS is the additional benefit from trade that the seller receives. It is defined as the difference between the producer's minimum price and the equilibrium market price.

ISOQUANT - a line that shows all possible combinations of resources to produce a given volume of output.

ISOCOST line - a line that shows all combinations of economic resources that a firm can purchase, taking into account market prices for resources and the full use of its budget.

PRICE INDEX (price index) – an index showing the dynamics of price changes, used to recalculate the nominal volume of production (income) into real volume (income).

INDIVIDUAL PRIVATE ENTERPRISE (individual proprietorship) is one of the forms of entrepreneurial activity; sole proprietorship

INFLATION – an increase in the general price level in the economy.

Cost-push inflation is inflation caused by a decrease in aggregate supply as a result of rising production costs.

DEMAND-PULL INFLATION – inflation caused by an increase in aggregate demand.

CAPITAL (capital) – investment resources, means of production; factors of production created by man during the production process. Financial capital (financial assets) is not a factor of production.

COMMAND ECONOMY (command economy) - an economic system in which material resources are state property, and the direction and coordination of the economic activities of society are carried out through centralized planning.

SHORT PERIOD (short run) - a period of time during which the company cannot change the quantity of at least one production resource.

PRODUCTION POSSIBILITY CURVE (production possibilities curve) - a curve showing possible combinations of production of two products under conditions of full employment, full use of all economic resources, unchanged technology and a constant supply of resources. This curve allows you to graphically illustrate the need for choice in conditions of limited resources and the presence of increasing opportunity costs.

SCALE OF PRODUCTION (see Economies of scaleproduction)

MICROECONOMICS (microeconomics) is a part of theoretical economics that studies individual economic entities (individual consumers, individual firms, states) in the process of production, exchange and consumption of goods and services in order to satisfy their unlimited requiredste through limited resources.

MODEL - a simplified representation of economic reality that allows you to highlight the most important things in a concise, compact form (for example, using graphs and equations) or an accurate description of a simplified imaginary economy.

MONOPOLISTIC COMPETITION - a market in which there are a significant number of firms producing differentiated products;

MONOPOLY – a market in which there is one seller and there are significant barriers to entry.

IMPERFECT COMPETITION - all markets in which the conditions of perfect competition are not met: monopoly, monopsonia, monopolistic competition, oligopoly And oligopsony; markets in which buyers or sellers are able to unilaterally influence market prices.

implicit costs - determined by the cost internal resources, those. resources, located inproperty of this company. An example of an implicit cost for an entrepreneur would be the wages he would otherwise receive as an employee.

NOMINAL income (nominal) - measured in current prices, not recalculated for inflation.

NORMAL PROFIT - part of the firm's total costs; the payments a firm must make to acquire and retain entrepreneurial talent; the minimum income that should reward entrepreneurial ability; imputed fromholders

NORMATIVE ECONOMICS (normative economics) is an approach to assessing economic phenomena from the point of view of what the economy, economic development goals, and economic policy should be.

TOTAL (TOTAL) COSTS (total cost – TC) – the total costs of an enterprise for the acquisition of the economic resources it needs (factors of production);

TOTAL REVENUE (TOTAL) (total revenue – TR) – the total receipts of a company from the sale of its products.

TOTAL PRODUCT (TOTAL) (total product – TP) – the total volume of products produced by the enterprise over a certain period of time.

LIMITED RESOURCES (scarce resources) – the impossibility of simultaneous and complete satisfaction of all the needs of all members of society.

OLIGOPOLY is a market in which a small number of large firms operate, producing both homogeneous and differentiated products.

NEGATIVE EFFECT OF PRODUCTION SCALE (decreasing returns to scale or diseconomies of scale) - the increase in output is less than the increase in costs, expressed in an increase in long-term average total costs with an increase in the scale of production.

PARTNERSHIP (partnership) is one of the forms of organizing business activity; a business owned and operated by two or more people.

CROSS-PRICE ELASTICITY OF DEMAND - characterizes the percentage change in the quantity of demand for one product when the price of another product changes by 1%. Used to characterize complementary and interchangeable goods.

VARIABLE COSTS – costs, the total value of which depends on changes in output volume.

VARIABLE FACTOR OF PRODUCTION (RESOURCE) (variable resource) – a resource whose quantity can be changed.

POSITIVE ECONOMICS (positive economics) - a direction in economic theory that involves the explanation and forecasting of economic phenomena, the study of general economic patterns on the basis of which the principles of economic behavior are formed, the identification of cause-and-effect or functional relationships between phenomena.

FULL EMPLOYMENT - the level of employment at which there is only frictional and structural unemployment, but no cyclical unemployment (and when the real national product is equal to the potential one).

POSITIVE EFFECT OF PRODUCTION SCALE (increasing returns to scale or economies of scale) - an increase in output greater than an increase in costs is expressed in a decrease in long-term average total costs with an increase in the scale of production.

FIXED COSTS – costs of a company, the value of which does not change when the volume of output of the company changes.

CONSTANT FACTOR OF PRODUCTION (RESOURCE) (fixed resource) – a resource, the quantity of which the company cannot change.

CONSTANT PRODUCTION SCALE EFFECT - the increase in output is equal to the increase in costs, expressed in a constant value of long-term average total costs with increasing scale of production

NEED (needs, wants) - the objective need of a person or group of people for something necessary to maintain the vital functions and development of the body and personality (see. Maslow's hierarchy of needs theory),

MARGINAL RATE OF TECHNOLOGICAL SUBSTITUTION (MRTS) - The amount of one resource that must be reduced in exchange for a unit increase in another resource so that the firm's output remains unchanged.

MARGINAL COST (MC) - the increase in the total costs of the company from the production of one additional unit of output.

MARGINAL REVENUE (MR) is the increase in the total income of a company from the sale of one additional unit of its products.

MARGINAL PRODUCT (MP) of any factor is the additional volume of output obtained when the costs of this factor increase by unit.

ENTREPRENEURIAL ABILITY is one of the most important economic resources. It assumes a person’s ability to: 1) organize the production and release of goods and services by combining all other resources; 2) make basic decisions on production management and business management; 3) risk your money, time, labor, business reputation; 4) be an innovator, i.e. introduce new technologies, new products, methods of organizing production.

PROFIT – the amount of excess of a company’s income over its costs; income of the owner of entrepreneurial talent.

PRODUCTION FUNCTION (production function) – reflects the relationship between the amount of resources used and the maximum possible volume of output per unit of time.

EQUILIBRIUM PRICE – the price at which the amount of market demand is equal to the amount of market supply.

EQUILIBRIUM STATE (equilibrium position) is a state of the market in which market demand is equal to market supply and there are no tendencies to change.

EQUILIBRIUM VOLUME (equilibrium quantity) - the amount of market demand and the amount of market supply at the equilibrium price.

RENT (rent) - 1) the difference between the income of a factor of production and the minimum amount necessary to retain the factor in a given area of ​​use; 2) income of the owner of natural resources, land.

RESOURCES (resource) - the totality of all material goods and services used by a person to produce the products he needs.

MARKET (market) is a special form of relationship between individual, independently decision-making economic entities, between buyers and sellers,

MARKET SUPPLY – the total supply of any product from all producers; the sum of the individual supply values ​​of a given product at different prices.

MARKET DEMAND (market demand) - the total demand for any product from all potential consumers; the sum of the individual demand values ​​presented by each consumer for a given product at different prices.

MARKET ECONOMY (market economy) - an economic system based on private property and the use of the mechanism of supply and demand to solve basic economic issues.

MIXED ECONOMY – an economic system based on different forms of ownership and the economic development of which is regulated by the market, traditions and centralized decisions.

PERFECT COMPETITION - a market in which there are a significant number of independent manufacturers producing homogeneous products, there is no non-price competition and barriers to the entry of new firms.

AGGREGATE DEMAND (AD) – the sum of expenditures of households, firms, the state and the external sector.

AGGREGATE SUPPLY (AS) is the total volume of national product that is produced in the country at a given price level.

DEMAND (demand) is the solvent need, desire and ability of an economic entity to buy this or that quantity of a given product.

AVERAGE TOTAL COSTS (ATC) – the volume of total costs per unit of output.

AVERAGE VARIABLE COSTS (AVC) – the volume of variable costs per unit of output.

AVERAGE FIXED COSTS (average fixed cost - AFC) - the volume of fixed costs per unit of output.

AVERAGE REVENUE (AR) – the amount of total income of a company per unit of output.

AVERAGE PRODUCT (AP) of any production factor is the volume of output per unit of the factor used.

TRADITIONAL ECONOMY (traditional economy) is an economic system in which traditions, experience, and customs determine the practical use of production resources.

LABOR - the totality of human physical and mental abilities expended in the production of goods and services.

ELASTICITY - the ratio of the percentage change in one variable, for example A, to the percentage change in another variable B. To quantify elasticity, the elasticity coefficient is used. Most commonly used elasticity of demand according toprice, income elasticity of demand, price elasticity of supply, cross (volume) elasticity of demand and crossreal price elasticity of demand.

INCOME ELASTICITY OF DEMAND - characterizes the percentage change in the quantity of demand for a product when the consumer’s income changes by 1%.

PRICE ELASTICITY OF SUPPLY - characterizes the percentage change in the supply of a product when its price changes by 1%.

PRICE ELASTICITY OF DEMAND - characterizes the percentage change in the quantity of demand for a product when its price changes by 1%.

EFFECT OF PRODUCTION SCALE (economies of scale) - the process of increasing production output by increasing the use of all production resources, or changing the scale of production;

PRODUCTION EFFICIENCY (productive efficient) - production of goods at the lowest cost; using the minimum amount of resources for a given volume of output.

EXPLICIT COSTS - determined by the amount of the enterprise's expenses for paying and purchasing resources from external suppliers.

Absolute advantage- the ability for a country to produce goods at lower costs (volumes of involved factors of production) compared to other countries (trading partners).

Prepaid expense- a sum of money issued against upcoming payments for material assets, work performed and services rendered.

Advice- an official notification from the bank about the execution of a settlement transaction sent by one counterparty to another; especially widely used by banks in mutual settlements.

Autarky- policy of voluntary or forced isolation of the country from the world market, economic isolation of the state.

Holdings- 1) assets, property; 2) the client’s funds in the bank.

Aggregation- combining individual units or data into a single indicator. For example, all prices of individual goods and services form one common price level, or all units of output are aggregated into real net national product.

Market aggregation- the opposite of market segmentation, or a strategy by which a firm treats the entire market as a homogeneous area and standardizes marketing activities.

Agio- excess of market rates of banknotes, bills or securities compared to their face value.

Acquisition- acquisition of an enterprise by a shareholder or group of shareholders by purchasing all shares of this enterprise on the stock exchange.

Letter of Credit- an order to the bank to pay a certain amount to an individual or legal entity upon fulfillment of the conditions specified in the letter of credit; a monetary, personal document issued by a bank to a person who has deposited a certain amount and wishes to receive it in full or in parts in another city within a certain time.

Assets- 1) property of an individual or legal entity; 2) part of the balance sheet.

Acceptance- agreement to accept the counterparty’s offer to conclude an agreement; consent to pay a payment request when making payments through a bank.

Excise tax- a type of indirect tax, mainly on consumer goods, as well as on services. Included in the price of goods or fees for services.

Joint-Stock Company- an enterprise created on the basis of a voluntary association by citizens and (or) legal entities of their property by issuing shares. Distinguish open And closed joint stock companies.

Promotion- a security that certifies ownership of a share in the capital of a joint-stock company and gives the right to participate in its profits, and in certain cases (simple share) to participate in the management of the enterprise.

Ordinary share (simple)- a share giving the right to participate in the management of a joint-stock company and receive a dividend.

Preferred share- a share that does not give the right to vote at a meeting of shareholders, but gives the right to a fixed dividend paid on a priority basis.

Alpari- compliance of the exchange rate of securities or market exchange rates with their face value.

Opportunity Cost- the cost of producing a good or service, measured in terms of lost opportunity to engage in the best available alternative activity that requires the same time or the same resources.

Depreciation deductions- deductions of part of the cost of fixed assets to compensate for their wear and tear (for complete restoration).

Annuities- a type of government long-term loan for which the lender annually receives a certain income (rent), established with the expectation of constant repayment of the capital amount of the debt along with interest on it.

Antimonopoly policy- government regulation aimed at demonopolizing the economy and preventing the emergence of monopolies.

Rent- the transfer by the owner of his property for a predetermined time for the use of another person, who in exchange undertakes to regularly pay the owner certain amounts of money, called rent or rent.

Range- a set of goods, products or services, specified by grade, brand, size.

Auditors- organizations (officials) checking the state of the financial and economic activities of enterprises and associations.

Auction- open auction, at which ownership of the property being sold is transferred to the buyer who offered the maximum amount during the auction.

"Buy-back"- a long-term commodity exchange operation in which the supply of machinery and equipment is carried out on credit with subsequent payment for the products produced with their help.

Balance- a system of indicators that characterizes, as of a certain date in monetary terms, the state of the means of production both in composition (asset) and in terms of their sources, intended purpose and return period (liability). They are divided into a system of summary (payment, trade, settlement, etc.) and accounting balance sheets.

Bank- a financial institution that attracts funds from legal entities and individuals and places them on its own behalf on the terms of repayment, urgency and payment.

Commercial bank- a private enterprise providing credit and cash services to enterprises and individuals.

Bank Central- a state bank that manages the entire monetary system of the country and has a monopoly right to issue money; stores temporarily available funds and required reserves of commercial banks.

Bank reserves- funds of commercial banks stored in a special account with the Central Bank, plus bank cash.

Bank interest- “price” of money, payment for the use of money borrowed.

Banknotes- 1) bank notes, bills of exchange for the banker; 2) paper money issued by the Central Bank.

Bankrupt- an enterprise that is unable to pay off its obligations with creditors; declared insolvent and closed.

Barter- balanced and valued exchange of goods, carried out without the involvement of money.

"Escape from Money"- the desire of people and firms to avoid accumulation and storage of unstable currency, depreciating money by quickly converting it into material assets, i.e. through the purchase of movable and immovable property.

Poverty- the standard of living of a family at which its income does not allow it to cover the costs of meeting even the most basic material needs, i.e. are below the subsistence level.

Non-cash funds- a form of making cash payments and settlements, in which the physical transfer of banknotes does not occur, but simply entries are made in special books for recording monetary transactions.

Unemployment- a socio-economic phenomenon when part of the economically active population cannot find work.

Business- economic activity aimed at making a profit.

Business plan- justifying the goals of the new business and determining ways to achieve them. Used as the main document to justify investments.

Exchange- the form of the market (institution) on which securities are traded (stock Exchange), goods (commodity exchange), foreign currency (currency exchange).

Stock quote- prices of exchange traded goods or securities rates registered and published by the exchange quotation commission.

Bonitet- solvency, the ability of the borrower to repay the loan.

Bonification- 1) a premium to the price of goods whose quality is higher than that provided for by the standard; 2) government subsidy, which allows reducing the interest rate on loans provided to certain categories of borrowers.

Bonds- debt obligations issued by the state treasury, individual institutions and enterprises.

Bonus- remuneration for commission services provided. The size of the bonus is determined as a percentage of the cost of the goods sold (exchanged or purchased).

Broker- an exchange intermediary who buys goods on behalf of the client and with his money.

"Bull"- a speculator who buys or retains previously purchased goods or securities in anticipation of rising prices.

Family budget- the structure of all family income and expenses for a certain period of time (month or year).

Budget deficit- the amount of excess of government expenditures over government revenues.

All in- risk associated with the possibility of either losing everything or gaining a lot.

Gross National Product- a macroeconomic indicator characterizing the volume of national production. Defined as the sum of market prices of all final products produced in the national economy during the year.

Valorization- an increase in the price of goods and the exchange rate of securities as a result of government measures.

Currency- 1) the country’s monetary unit; 2) banknotes of foreign states and credit means of circulation and payment, expressed in foreign monetary units (bills, checks, etc.) and used in international payments.

Exchange rate- the price of a monetary unit of one country expressed in the monetary unit of another country.

Currency intervention- operations of the Central Bank for the purchase and sale of the currency of its country in order to influence the exchange rate.

Warrant- an additional facility issued along with a security and giving the right to additional benefits (for example, the right to purchase a certain number of ordinary shares of the same issuer after purchasing its bonds).

Voucher- 1) privatization check issued during the privatization process for the acquisition of shares of privatized enterprises; 2) written evidence, mandate, guarantee or recommendation.

Veblen effect- a phenomenon described by the American economist T. Veblen in the book “The Theory of the Leisure Class” (1899), which occurs when, as a result of a fall in the price of a product, some consumers decide that this was due to a deterioration in its quality, and reduce consumption of this product.

Bill of exchange- a security (debt, mortgage) containing an unconditional monetary obligation to pay a certain person or bearer of a bill of exchange a certain amount within a certain period.

Venture capital companies- knowledge-intensive research and development organizations, with the help of which risky projects are implemented (in order to maximize profits).

Complementary Products- goods for which there is an inverse relationship between the price of one product and the demand for another, namely: a decrease (increase) in the price of one product leads to an increase (decrease) in demand for another product.

Interchangeable goods- products that can satisfy the same need; in this case, a decrease (increase) in the price of one product leads to a decrease (increase) in demand for another of the interchangeable goods.

External effects- effects of production or consumption of a good, the impact of which on third parties who are neither buyers nor sellers is in no way reflected in the price of this good.

External public debt- state debt for outstanding external loans and unpaid interest on them.

Reproduction- continuous resumption of production activities on the same or expanded scale.

Secondary market (securities)- a market on which securities are resold after their initial sale, distribution, placement by issuers. Secondary market agents are usually banks and firms specializing in the sale of securities.

Revenue- funds received (proceeds) by an enterprise, firm, entrepreneur from the sale of goods and provision of services.

Garan giya- guarantee; ensuring fulfillment of obligations. For example, a bank guarantee is provided by the buyer if the seller doubts his solvency.

Hyperinflation- accelerating growth of inflation rates, in which the value of money falls so quickly that they cannot fulfill their main economic functions - a means of payment and especially a means of storing value (wealth). The formal criterion of hyperinflation was introduced by the American economist F. Kagan, who proposed that the beginning of hyperinflation be considered the month in which price growth for the first time exceeded 50%, and the end - the month preceding the month in which price growth falls below this critical level and does not reach it again for at least least during the year.

Horizontal merge- merging into one company or taking under unified control two or more enterprises carrying out the same stages of production or producing the same products.

"Hot money"- monetary capital that spontaneously moves from one country to another in order to preserve value or extract speculative excess profits.

State regulation of the market- state intervention in the functioning of market mechanisms, impact on the economy through administrative (legislative acts and actions of executive authorities based on them) and economic (monetary, financial, monetary, fiscal) methods and levers.

Government loans- the main form of public credit, which is a credit relationship in which the state acts primarily as a debtor (in this case, the debt is included in the amount of public debt).

Finished products- products of main or auxiliary workshops intended for export.

Gradualism- economic policy aimed at slowly reducing inflation over a long period of time by managing aggregate demand and without harming employment.

Production Possibility Frontier- an indicator of the maximum possible volume of output of a certain product or type of service that can be produced in the economy under the existing level of use of available resources and knowledge, as well as with given volumes of production of other goods and services.

Grant- 1) deed of gift, document on transfer of rights; 2) subsidy, subsidy, scholarship.

G udvil - the conditional value of business connections, the price of accumulated tangible assets, the monetary value of intangible capital (prestige, trademark, experience of business connections, stable clientele). For example, the Coca-Cola trademark is valued at $3 billion, Camel at $2.5 billion, and Stolichnaya vodka at $100 million.

Movable - 1) property that is not directly connected with or attached to land (as opposed to real estate); 2) moved things, money, securities.

Debit - 1) the amount due for payment or receipt as a result of economic relations with a legal entity or individual; 2) an account of receipts and debts of a given institution or organization.

Debtor - an individual or legal entity that has a debt to a certain enterprise, organization, institution, or citizen.

Devaluation - official depreciation of the national currency against foreign currencies.

Mottos - means of payment in foreign currency intended for international payments.

Declaration of income- a corresponding statement on the amount and sources of income, filled out by individuals and legal entities.

Decor- a discount on the price of goods provided by the seller to the buyer upon early payment or due to the fact that the quality of the goods is lower than that stipulated in the contract.

Demonopolization- elimination of state or other monopoly that dictates its terms to the market.

Dumping- waste export - sale of goods at prices below costs (cost); carried out, as a rule, on the foreign market.

Money supply- a set of generally accepted means of payment in the economy.

monetary mechanism- the way in which changes in the money supply affect the economy.

Money market- a market for short-term transactions for lending and borrowing money, bringing together commercial banks, companies and the government.

Denomination- consolidation of the national monetary unit by exchanging old banknotes for new ones according to the established ratio in order to streamline monetary circulation, facilitate accounting and settlements in the country.

Money- any generally accepted means of payment that can be exchanged for goods and services and used to pay debts.

Deposit- all types of funds (money, securities, etc.) transferred by their owners for temporary storage to the bank with the right to use this money for lending. Deposits vary poste restante And urgent.

Depression- a very severe recession lasting more than a year. Characterized by a stagnant state of the economy, low prices, weak demand for goods, mass unemployment, etc.

Gross Domestic Product Deflator- price index for all goods and services produced, used to obtain real gross domestic product. The importance of information and real GDP is explained by the fact that it reflects the physical output of goods and services, and not their monetary value.

Deflation- the process of reducing the general price level in the country.

"Cheap money"- cheaper loans as a result of the Central Bank’s expansionary credit policy in order to expand lending to the economy.

Decile coefficient- an indicator of uneven distribution of income between different groups of the country’s population; calculated as the ratio of the income of the richest 10% of people to the income of the poorest 10% of people.

Jobbers- dealers of the London Stock Exchange, carrying out transactions for the purchase and sale of securities on their own behalf and at their own expense.

Diversification- simultaneous development of many directly unrelated industries; a strategy of reducing risk by spreading investments across multiple risky assets.

Dividend- income (profit) received by the owner of shares based on the results of the activities of the joint-stock company.

Dizagio- deviation of the exchange (market) rate of securities or banknotes downward compared to their nominal value; usually expressed as a percentage of face value. The deviation of the exchange rate from the nominal value towards an increase is called we screw up.

Dealing- a range of trade, intermediary and business services.

"Dynamite"- a trader who sells unreliable goods or securities.

Discount - 1) the difference between the current price and the price at maturity or the face value of the security; 2) the difference between prices for the same product with different delivery times.

Discounting- a method of determining the present equivalent of the value of money that will be received or spent in the future. If the discount rate is 10%, and the amount that will be received in a year is $110, then the today's value of this amount will be $100. The discounting operation is the inverse of calculating compound interest. The discounting method is widely used to evaluate investment projects when costs and income are distributed over time.

Distributor- a company that carries out sales on the basis of wholesale purchases from large manufacturing companies.

Product differentiation- a process that occurs when a product sold on the market is not standardized.

Added value- the total sales of a firm minus the cost of materials and other intermediate goods used in the production of goods sold. The added value does not include depreciation charges.

The household- the most important subject of economic relations; an economic unit that produces and consumes goods and services.

"Expensive money"- 1) an increase in the cost of credit as a result of the Central Bank’s measures taken to curb economic growth and regulate inflation; 2) money whose purchasing power increases.

Subsidy- free financial assistance to compensate for any costs.

Income- flow of cash and other income per unit of time. There are four main forms of income: rent, wages, interest and profit.

Subsidiary- a branch of the parent joint-stock company, which is under the control of the parent company. Control is ensured by purchasing shares of a subsidiary.

Natural monopoly- an industry in which the production of goods or services provided are concentrated in one company due to objective (natural or technical) reasons, and this is beneficial to society.

Natural rate of unemployment- the unemployment rate corresponding to the objectively achievable level of full employment in the economy (frictional and structural unemployment).

Market volume- total effective demand of buyers.

Mortgage- a document on the debtor’s pledge of real estate (land, buildings), giving the creditor the right to sell the pledged property at auction if the debt is not paid on time.

Law of Diminishing Marginal Productivity- states that with a larger amount of a variable production resource used (assuming that other resources and technologies are constant), the marginal product of this resource will most likely decrease.

Wage- equilibrium price in the labor market; income in cash or in kind received by an employee.

Overstocking- excess goods on the market; excess of supply over demand.

Ground rent- 1) part of the surplus product created by agricultural workers, appropriated by land owners; 2) the main part of the rent paid to land owners by its tenants.

Earth- a factor of production that is not reproduced, but is naturally available, but in a limited volume.

gold standard- a mechanism for the exchange of national currencies, based on the establishment of a fixed weight of gold (gold collateral), to which a paper monetary unit of a certain denomination was equated, and the exchange of currencies based on the ratio of the sizes of such gold collateral.

Economic free zone- a special economic zone (free trade zone), limiting a part of the national-state territory, in which special preferential economic conditions apply for foreign and national entrepreneurs (customs, rental, currency, visa regime benefits, etc.), which creates conditions for industrial development and investment of foreign capital.

Costs- the firm's expenses for producing goods or services sold during a certain period of time; equal to the sum of fixed and variable costs. As a rule, the amount of costs in accounting terms differs from the level of economic costs.

Opportunity costs- the opportunity cost of any resource chosen to produce a good, equal to its cost under the best of all possible uses.

Accounting costs- actual consumption of production factors for the production of a certain amount of products at their acquisition prices.

Gross costs- the sum of fixed and variable costs.

Implicit costs- the cost of non-purchased resources used in production.

Variable costs- costs, the total value of which for a given period directly depends on the volume of production and sales.

Fixed costs- costs, the amount of which in a given period does not directly depend on the size and structure of production and sales.

Production costs- cash costs of the enterprise for the means of production consumed in production and payment of wages.

Costs are average- total costs per unit of output.

Explicit costs- opportunity costs, which take the form of explicit cash payments to suppliers of factors of production and intermediate goods.

Consumer surplus- the difference between the maximum amount that consumers are willing to pay for a certain quantity of a good they want and the amount they actually pay. It is measured as the area between the demand curve and the horizontal line at the market price level.

Producer surplus- the total effect of price exceeding production costs. It is measured as the area between the supply curve and the horizontal line at the market price level.

Moral wear and tear- partial loss of value of elements fixed capital due to the production of more productive or cheaper analogues.

Physical wear and tear- gradual decrease in the efficiency (value) of elements fixed capital due to their constant use.

Import- purchasing goods from a foreign counterparty and importing them into the country.

Investment- the process of investing public or private capital in various sectors of the national economy.

Index- a relative indicator characterizing the relationship between socio-economic processes in time or space: prices of individual goods, volumes of various products, costs, etc.

Herfindahl index- an indicator of market concentration, calculated as the sum of the squares of the market shares (in percentage) of all market entities in its total volume.

Dow Jones Industrial Average- a popular industrial stock market index used on the New York Stock Exchange. It is calculated in dollars and consists of four indicators: the average stock price of 30 industrial corporations, 20 transport corporations, 15 utility companies and a consolidated rate for all 65 corporations combined.

Price index- an indicator expressing the ratio of prices for goods and services for two different periods of time.

Indexing- automatic adjustment of payment amounts taking into account inflation rates calculated on the basis of the price index.

Indicative planning is non-directive, recommendatory, orienting planning at the state level.

Endorsement- giro - an endorsement on the back of a security, bill, check, certifying the transfer of rights under this document to another person. The person making the endorsement is called endorser(otherwise - girant).

Engineering- provision of engineering, construction and design services.

Collector- an employee who delivers money from the company's cash desk to a banking institution.

Collection- a banking operation through which the bank, on behalf of its client, receives funds due to the enterprise on the basis of settlement documents and credits them to its bank account.

Innovation- the process of investing funds in the economy, ensuring scientific and technological progress.

Integration- the economic process of interaction between the national economies of two or more states based on cooperation and international division of labor.

Intensive economic growth- economic growth, in which the volume of production increases through more efficient use of existing factors of production through the use of modern technologies, labor organization, etc.

Inflation- imbalance of supply and demand, manifested in rising prices; growth of the general price level in the economy and overflow of money circulation channels.

Cost inflation- an increase in the general price level as a result of a decrease in aggregate supply due to increased wages and prices for raw materials. Accompanied by a reduction in real output and employment.

Demand inflation- an increase in the general price level caused by the fact that the level of aggregate demand exceeds the level of aggregate supply in the economy of a given country. According to the monetarist point of view, excess demand arises from too rapid an increase in offers of money.

Infrastructure- a complex of production and non-production industries that serve production and provide the living conditions of society (roads, communications, transport, education, healthcare).

Mortgage- pledge of land or other real estate in order to obtain a loan, called mortgage loan.

Costing- calculation of the cost per unit of production or work performed.

Cadastre- a register containing a list of information about taxable objects that are subject to direct real taxes. Such objects include land, houses, and industries.

Capital- one of the factors of production; all means of production and resources used to produce goods and services.

Fictitious capital- capital (stocks, bonds, mortgage notes, etc.), which, unlike real capital (in the form of money and equipment), is not a value, but only the right to receive income.

Capital investments- the totality of costs of material, labor and monetary resources aimed at the expanded reproduction of fixed assets in all sectors of the national economy.

Cartel- one of the forms of monopoly, which is an agreement between enterprises on price, production volume and division of the market for the sale of goods.

The quality of life- a general indicator of the comfort of people’s lives, taking into account the level of material well-being, the amount of free time for personal needs, the degree of safety of citizens, the economic situation in the country and many other factors.

Product quality- a set of technical, economic and aesthetic properties of a product that determine its ability to satisfy certain needs in accordance with its intended purpose.

Quasi-money- non-cash funds held on time and savings deposits in commercial banks.

Quota- share in the production or marketing of products established by law or agreements.

Keynesian model- an economic model (named after the English economist John Maynard Keynes), where prices and wages are fixed in the short term. The aggregate supply curve is represented by a horizontal line, with the result that real gross national product is completely determined by the level of aggregate demand.

Classic model- a model of the labor market and aggregate supply in which absolute flexibility in wages and prices results in a permanent situation of full employment. In this case, the aggregate supply curve is a vertical straight line.

Quantity theory of money- a theory that states that changes in the price level are mainly based on the dynamics of the nominal money supply.

Clearing- a system of non-cash payments by offsetting mutual claims and obligations.

Command economy- an economy in which the entire volume of resources is distributed by central government authorities.

Commission- 1) an agreement under which one party (the commission agent) undertakes, on behalf of the other party (the principal), for a fee, to conclude a transaction on its own behalf, but in the interests and at the expense of the principal; also the fee for completing such a transaction; 2) in banking practice - a payment to a commercial bank for conducting operations performed on behalf and at the expense of clients.

limited partnership, limited partnership - a company in which, along with general partners, there are one or more participant-investors (limited partners), who bear the risk of loss only within the limits of the amounts of contributions made by them and do not take part in the business activities of the partnership. Limited partners receive a portion of the partnership's profits due to their share in the joint capital.

Limited partner- a member of a limited partnership (limited partnership), who bears limited liability for the obligations of the partnership within the limits of his contribution (in contrast to the complementor - a personally responsible partner who is liable for the obligations of the company with all his property).

Commerce- trading and trade-intermediary activities, participation in the sale or promotion of the sale of goods and services; in a broader sense - entrepreneurial activity.

Traveling salesman- a traveling agent of a trading company who offers customers goods according to the samples, catalogs, etc. he has.

Conversion - 1) transfer of military enterprises to the production of civilian products or vice versa; 2) a change in the initial conditions of government loans, expressed in the repayment of interest, deferment of payments, change in the method of loan repayment, etc. (loan conversion); 3) exchange of one currency for another at the current exchange rate (currency conversion).

Currency convertibility- the opportunity to freely exchange national currency for foreign currency at the current exchange rate, as well as pay for foreign goods and services in national currency (both within the country and abroad).

Final product- part of the total social product minus intra-production consumption.

Competitiveness- the ability of a product or its manufacturers to win competition in the market with goods manufactured by other companies, due to better compliance with the requirements or financial capabilities of buyers.

Competition- competition between commodity producers for better, more economically advantageous conditions for the production and sale of goods, for obtaining the highest profits.

Unfair competition- economic competition in which non-market forms of competition are used: unfair advertising, dissemination of false information about competitors, illegal use of a trademark, etc.

Competition is imperfect- an economic competition in which two or more sellers, having some (limited) control over price, compete with each other for sales.

Non-price competition- economic competition in which competing firms use methods other than changing the selling prices of their products.

Perfect competition pure - economic competition in a market where many firms sell a standard product and none of them has a sufficient share to control the market and prices.

Consulting- activities of special companies to advise producers and consumers in the field of technological and economic activities.

Consignment- the owner of goods sold abroad through the intermediary of a commission agent (consignee).

Consortium- a temporary voluntary agreement between several banks, firms, companies in order to coordinate actions to service a single capital-intensive project.

Smuggling- illegal movement of goods and other valuables across the state border.

Counterparty- each of the parties to the contract in relation to each other, assuming certain obligations.

Contract- a legally binding agreement, a contract between two or more participants with mutual obligations to supply and purchase goods, perform certain work.

Controlling- accounting and control at the enterprise.

Controlling stake- a share of shares giving the right to manage a joint-stock company.

Concern- diversified joint stock company; a form of association of many enterprises from different industries, trade, transport, services and financial institutions.

Concession- 1) a contract or agreement for the state to commission industrial enterprises or plots of land with the right to extract minerals, construct structures, etc. to domestic or foreign firms; 2) the enterprise itself, organized on the basis of such an agreement.

Conjuncture- a temporary economic situation in the market, characterized by the appropriate relationship between supply and demand, price level, inventory, order portfolio for the industry, etc.

Cooperative- an enterprise (firm) created on the basis of the voluntary association by citizens of their property. A member of a cooperative takes personal labor participation in its activities.

Corruption- merging of state structures with the criminal world, corruption and bribery of political and public figures, as well as government officials.

Indirect taxes- taxes on goods and services, established in the form of a price premium and paid by producers. The final payer is the consumer who purchases goods at increased prices, including indirect tax.

Quoted- 1) be traded on the stock exchange; 2) have a certain price (about currency, securities, goods).

Credit- a loan in cash or commodity form on the terms of repayment and usually with the payment of interest.

Laffer curve- a curve showing the relationship between tax rates and the volume of tax revenues to the state budget. Allows you to identify a tax rate (from 0 to 100%) at which tax revenues reach a maximum. Named after the American economist.

Lorenz curve- a curve illustrating the distribution of income in the economy. The total percentage of families (recipients of income) is measured along the x-axis, and the total percentage of income is measured along the ordinate axis. Named after the American economist.

Production possibility curve- a curve showing the maximum quantity of any good that can be arbitrarily produced in some economic system given the output of all other goods, limited resources and a given technology.

Cross course- the relationship between two currencies, which is determined on the basis of the exchange rate of these currencies in relation to any third currency.

Share price- the selling price of a share, determined by the relationship between supply and demand and depending on the size of dividends, as well as on the stability of the position and commercial prospects of the joint-stock company.

Courtage- remuneration to the broker for mediation in making an exchange transaction.

Lag- a time gap between two phenomena or processes that are in a cause-and-effect relationship.

Phillips curve- a curve describing the relationship between the unemployment rate (along the x-axis) and the annual growth rate of the price level (along the ordinate). Named after the English economist.

Label- any product label that indicates the country where the product was made, the manufacturer, its trademark or brand name, etc.

Liberalization(economy, prices) - expanding the freedom of economic action of business entities, removing restrictions on economic activity, emancipating entrepreneurship. Price liberalization is the transition from state-set prices (state pricing) to a system of free market prices (market pricing).

Leasing- provision of long-term lease of fixed assets. Leasing companies purchase equipment to rent it out. This is a relatively new way of financing investments, based on the retention of ownership rights of the lessor.

Liquidity- the ability of material assets and other resources to quickly turn into money; the ability of an enterprise to pay its obligations on time, to convert balance sheet asset items into money to pay liability obligations.

Listing- list of securities admitted to circulation on the stock exchange.

License- permission issued by state or local authorities to conduct certain economic activities.

Lloyd- English insurance association, one of the largest monopolies in Great Britain.

Lobby, lobbying- private or public organizations that influence the legislative or executive decision-making in the interests of certain groups of the population.

Logo- a specially designed original style of the full or abbreviated name of the company.

Pawnshop- a credit institution that accepts valuables (movable property) from citizens as collateral and issues them loans for a period and in an amount that is only part of the value of the pledged item.

Lot- an auction trade term meaning a unit or batch of goods offered for sale.

Lumpen- a person deprived of any (even movable) property.

Broker- an individual or legal entity acting as an intermediary in the purchase and sale of goods and securities. The broker can carry out transactions both at his own expense and at the expense of the client.

Macroeconomics- a branch of economic theory that studies the economy as a whole.

Margin- bank profit, defined as the difference between the amount of interest charged and paid by the bank; a term also used in exchange and trading practice to denote the difference between prices and rates when concluding transactions.

Marketing- the general name of a group of methods that make it possible to more accurately determine the real needs of consumers for certain goods, as well as influence the amount of demand for these goods.

"Bear"- a speculator who believes that prices will soon go down and sells contracts (plays on the decline).

Management- enterprise organization and management system; a branch of economic science that studies the theory and practice of organizing and managing production and sales of products.

Mercantilists- economists whose scientific school developed in the 15th century. and dominated for almost two centuries. Mercantilists considered wealth only that which could be converted into money. They believed that the main sphere where wealth is born is the sphere of circulation and, in particular, trade. In their opinion, the state should strive to ensure that as much gold and silver as possible settles in the country: in this they saw the main source of the nation’s power.

Microeconomics- a branch of economic theory that studies economic processes at the level of an individual enterprise.

Minimal salary- the minimum wage established by law at enterprises of any form of ownership.

Economic-mathematical model- an equation or system of equations that reflects the basic properties of real objects, processes, systems. With its help, a researcher can conduct computational experiments on complex economic systems over which a direct full-scale experiment is impossible (or undesirable).

Monetarism- an economic theory based on the determining role of the money supply in circulation in the implementation of policies to stabilize the economy, its functioning and development.

monetary rule monetary rule - a rule formulated by supporters of monetarism, according to which the mass of money in circulation should increase annually at a rate equal to the potential growth rate of real GDP.

Monitoring- a system of measures that allows you to continuously monitor the condition of a certain object or system.

Monopoly- an enterprise that has a dominant position in the market, which allows it to determine prices.

Monopsony- a type of market structure in which there is a monopoly of a single buyer of a particular type of product.

Moratorium- deferment of payments on debt obligations for a certain period or until the relevant condition is met.

Cash- funds used in cash circulation. In a modern economy, their volume is equal to the sum of coins and banknotes in the hands of the population and non-banking institutions.

Tax- a mandatory payment, a fee levied by the state or local government from citizens (individuals) or enterprises (legal entities) on the basis of special legislation.

Inflationary tax- a tax implicitly paid by consumers in an economic situation in which the government pursues policies that cause inflation. This type of tax is preferred by the government because it is less noticeable than directly increasing tax rates.

Value added tax (VAT)- a tax representing the withdrawal to the budget of part of the increase in value created in the process of production of work. The taxable amount is established as the difference between the goods sold and purchased by the enterprise.

C.O.D- a method of payment for cargo (or postal item), in which the sender instructs the transport organization (or mail) to release the cargo (postal item) to the addressee only upon payment of the declared value of the cargo.

Natural economy- a type of economy in which products are produced only for one's own consumption and not for sale or exchange.

Nationalization- transfer of property from private ownership to state ownership.

National income is a macroeconomic indicator characterizing the sum of incomes of all owners of production factors. Determined by subtracting the amount of indirect business taxes from net national product.

Inferior commodity- a product for which demand falls as consumer income increases.

Denomination - 1) nominal value indicated on securities, paper banknotes and coins; 2) the price of the product indicated in the price list or on the product itself.

Profit rate- the book profit of the company divided by the amount of equity capital, expressed as a percentage.

Normal profit- a concept used to denote the opportunity costs of the owner of capital; When calculating economic profit, it is included in costs.

Normative economic theory- that part of economics that deals with judgments about whether certain economic conditions and policies are good or bad.

Know-how- a set of technical, technological, commercial and other knowledge.

Bond- a type of securities issued by the state and joint-stock companies as a debt obligation for an internal loan. Grants the right to its owner to pay a nominal amount at a specified time and specified annual interest.

General equilibrium- a stable state of a competitive economy, in which consumers maximize the value of the utility function, and competing producers maximize the resulting profit at prices that ensure equality of supply and demand.

Public good- a good that, after being consumed by one person, is still available for consumption by other people (for example, national defense).

Joint Stock Company- an enterprise whose authorized capital is divided into a certain number of shares. Shareholders bear the risk of loss only up to the value of their shares.

Closed joint stock company- a joint stock company whose shares are distributed only among its founders.

Open joint stock company- a joint-stock company that has the right to conduct open subscription and sale of shares issued by it.

Additional liability company- a company whose participants are liable in the same multiple of the value of their contributions.

Limited Liability Company- a company that has a charter fund, divided into shares, the size of which is determined by the constituent documents, and is liable for obligations only to the extent of the value of its property. All property of the company belongs to its participants, and the company itself is in many ways similar to a joint-stock company.

Overbot- a jump in prices for a certain product due to large volumes of its purchases.

Oversold- a sharp drop in the price of a product due to large volumes of its supply to the market.

Oligarchy- the political and economic dominance of a small group, as well as this group itself. Financial oligarchy is a group of the largest owners of industrial and banking monopolies, which actually dominate the economic and political life of the country.

Oligopoly- a type of market structure of an industry in developed countries, in which the majority of sales are carried out by several firms, each of which is large enough to influence the level of market prices through its actions.

Open market operations- an instrument of monetary policy of the Central Bank, through which the purchase or sale of government treasury bills and bonds is carried out to manage the supply of money in the country.

Wholesale- transactions for the sale of goods in large quantities, when the buyer is the owner of a wholesale trading company that supplies stores or manufacturing companies with goods.

Option- a transaction with a condition - a contract under which one of the parties acquires the right (but not the obligation) to buy something in the future at a price determined on the day the contract is signed.

Offer- a formal offer to a certain person to conclude a transaction, indicating all the conditions necessary for its conclusion. The person making the offer is called the offeror.

Offshore centers- states that provide benefits in the field of financial and credit operations in order to attract foreign capital.

"Public Relations"- various activities to form a favorable public opinion about a company, product, service, etc.

Publicity- 1) fame, popularity, advertising; 2) dissemination of information about the company and its products in order to stimulate demand.

Share- a contribution paid by organizations or individuals upon joining a partnership, cooperative or other share enterprise.

Parity(currencies) - the ratio of the purchasing power of various national monetary units, calculated on the basis of a comparison of the amounts of money required to purchase the same set of goods in each country.

Passive- the totality of debts and obligations of an enterprise.

Patent - 1) certificate certifying authorship and exclusive right to the invention; 2) a document granting any right or privilege (for example, the right to engage in trade).

Pauperism- poverty (massive) of the working masses, lack of necessary means of subsistence; is a consequence of increasing exploitation of workers and unemployment.

Lump sum- taken in bulk; general, without differentiation of constituent elements (tax, duty, payment, etc.).

Penya- a type of penalty, a sanction for failure to fulfill monetary contractual obligations, which is accrued for each day of delay as a percentage of the amount due.

Variable costs- costs depending on the quantity of products produced (costs of raw materials, materials, wages, etc.).

"Pyramid"- a method of profit used by financial companies. The funds received by the company from the sale of securities are partially paid in the form of dividends to those persons who purchased the securities earlier, and are also used for large-scale advertising and as income for the financial company.

Floating exchange rates - a regime of freely fluctuating exchange rates, based on the use of a market mechanism of currency regulation; one of the structural principles of the modern world monetary system.

Positive economic theory is that part of economic science that studies facts and the relationships between them.

Positioning is the development of a marketing and advertising mix that ensures that the offered product is clearly distinct from other products and has a competitive position in the market, as well as in the minds of target consumers.

Purchasing power is the ability of a monetary unit to be exchanged for a certain amount of goods.

Tight money policy is a monetary policy of the Central Bank in which it sets high interest rates and sells government bonds on the open market to reduce the money supply. Carried out in conditions of inflation.

Full employment is the level of employment of labor resources, characterized by the absence cyclical unemployment. This is achieved if only frictional and structural forms of unemployment take place in the economy.

Fixed costs are part of gross costs that do not depend on production volumes.

Potential national income is the amount of real national income that could be produced if all factors of production were fully employed.

A consumer basket is a set of food and non-food products, housing and communal services, cultural and educational, health care and other paid services necessary to satisfy human physiological needs. The consumer basket is assessed in current prices for goods and tariffs for services. The size of the minimum consumer basket is determined by the set of goods and services necessary for the reproduction of the labor force of an unskilled worker and his dependents.

Needs are those goods and services that people would like to have if they did not have to pay for them or for which they had enough money.

A duty is a type of consumption tax levied on those individuals or legal entities that enter into economic relations with the state or among themselves.

Limit value - an increment (increase) in the value of an economic indicator due to an increase by one unit in the factor on which this indicator depends.

Marginal cost is the cost associated with producing an additional unit of output.

Marginal revenue is the additional income a firm receives when its product sales increase by one unit.

Marginal product is the additional product or output created by an additional unit of any factor of production, provided that other factors of production remain constant.

Entrepreneurial activity is an independent initiative activity of citizens aimed at making a profit through the effective use of factors of production.

An enterprise is an independent production and economic unit created for the purpose of making a profit; in market conditions, an enterprise is called by the company.

Price-list- a reference book of prices for products, goods or services.

Press release- information about a product, company or reseller, distributed for possible publication in the press.

Surplus value- part of the cost of goods produced in enterprises, which is created by the unpaid labor of hired workers.

Profit- economic value, defined as the difference between total revenue and total costs; excess of income over expenses.

Profit is normal- remuneration to the entrepreneur sufficient to support activities in the chosen direction.

Economic profit- the difference between gross income (gross revenue) and economic costs release of a given volume of products.

Privatization- the process of transferring state and municipal property into private ownership for a fee or free of charge.

Living wage- the level of income necessary for a person to purchase an amount of food not lower than physiological norms, as well as to satisfy, at least at the lowest level, his needs for clothing, shoes, housing, transport services, sanitation and hygiene items. It is calculated based on the consumer basket for various population groups.

Labor productivity- indicator of productivity, labor efficiency; characterizes the amount of products produced per unit of time, or the time spent on producing a unit of product.

Prolongation- extension of the validity period of a contract, agreement, loans, etc.

Proportional tax- a tax whose average rate remains unchanged as the taxpayer's income increases or decreases.

Protectionism- government foreign trade policy aimed at increasing barriers to trade with other countries. Instruments of protectionism are tariffs and quotas, which are introduced to protect domestic producers from foreign competition.

Percent(loan) - payment for a loan; price for using borrowed funds.

Direct taxes- taxes levied directly on the income or property of the taxpayer.

A pool is an association of enterprises that is temporary in nature.

Paragraph- a unit of measurement when comparing relative values ​​expressed as a percentage. For example, in the base year the growth rate of national income was 2.5%, and in the reporting year it decreased to 1.4%, i.e. by 1.1 points.

Dividing the pile- specialization, differentiation of labor activity, leading to the emergence and existence of its various types.

Ramburs- 1) payment of debt through a third party; 2) in international trade - payment for purchased goods through a bank.

Rentier- a person living on rent - on interest from a capital loan or on income from securities.

Future expenses- costs incurred by enterprises in the reporting period, but subject to inclusion in the cost of production in subsequent periods.

Real income- the number of goods and services that can be purchased with your nominal income.

Revaluation- an increase in the exchange rate of a monetary unit in relation to the currencies of other countries, carried out by the state in an official manner.

Regressive taxation- a taxation system in which the average tax rate decreases (increases) as the taxpayer's income increases (decreases).

Reinvestment- repeated, additional investments of funds received in the form of income from investment operations.

Renovation- the process of updating morally and physically worn-out fixed assets.

Rent- income received from land, capital, property and does not require entrepreneurial activity from its recipients. The most common is ground rent.

Profitability- one of the main indicators of enterprise performance. It is calculated as the ratio of profit to production cost.

Report- an exchange forward transaction for the sale of securities (or currency) to a bank with the obligation of subsequent repurchase after a certain period at a new, higher rate; the difference between the sale and purchase price is also called the report.

Restriction- 1) restriction of production, sales and exports in order to inflate prices for goods and obtain high profits; 2) restriction of loans from the Central Bank to commercial banks of the country.

Refinancing government debt- payment by the government to holders of maturing government securities of money received from the sale of new securities, or the exchange of redeemed securities for new ones.

Recession- a decline in production or a slowdown in its growth rate for two or more quarters in a row.

Recipient- an individual, legal entity or state receiving any payment. The term is applied, as a rule, in relation to countries that are objects of foreign investment (host countries).

Realtor- real estate agent.

Royalty- a form of licensing fee, carried out as periodic percentage payments, most often from the cost of products produced under a license.

Market- the sphere of exchange of goods and services between sellers and buyers.

Buyer's market- a market situation characterized by the fact that the supply (of producers and sellers) of a product exceeds the demand for it at current prices.

Seller's Market- a market situation characterized by the fact that the demand for a product exceeds its supply.

Market economy- a way of cooperation between people in the economic sphere, based on a commodity economy and presupposing for everyone the freedom to choose a transaction partner and the freedom to set prices for their goods.

Racket- extortion of state or personal property, money through threats, blackmail and violence.

Balance- the difference between cash receipts and expenses for a certain period of time.

Swap- an operation to exchange national currency for foreign currency with the obligation of reverse exchange after a certain period.

Cost price- the amount of costs (in monetary terms) for the production and sale of a unit of product or the entire volume of its output, for the performance of work and the provision of services.

Market segment- a set of consumers who react identically to the same product (service).

Seleng- one of the types of leasing. In this case, money is rented without changing ownership rights. Only the profit made from the transaction is taxed, not the entire amount (unlike a loan).

Certificate- 1) a document certifying this or that fact; 2) bonds of special government loans, as well as bearer securities issued by the bank.

Syndicate- one of the forms of monopoly - an association of homogeneous enterprises created for the purpose of marketing products through a common sales office, organized in the form of a special trading partnership, with which each of the syndicate participants enters into an agreement on the same terms for the sale of their products.

System of National Accounts- a set of interconnected balance sheets designed to calculate the volume of income consumption, savings and capital expenditures.

Own- the right of a citizen, company or state, recognized by society and protected by law, to own, use and dispose of any property or economic resource.

Aggregate offer- the sum of individual offers of many goods and services in the economy, measured by the volume of the national product.

Aggregate demand- the sum of individual surveys of all consumers in the economy for the entire volume of national production characterizes total expenses in the economy.

Aggregate demand for money- the total amount of cash that economic entities hold for transactions and for preserving wealth (savings). Depends on the level of national income and interest rates.

Social market economy- a social system in which the state actively supports the development of free competition, helps to reduce conflicts between employees and employers, and also implements extensive programs to support socially disadvantaged groups of citizens.

Specialization- concentration of production in the hands of the most efficient worker (firm).

Spot- a type of transaction for cash goods or currency, involving immediate payment and delivery.

Demand- the effective need for the amount of goods that people want and can buy at a given price.

Demand for money to make transactions transaction demand - the amount of cash that households and firms want to have for use as a medium of exchange and which is determined by the level of nominal GDP.

Demand for money as a precaution- the amount of money people keep in cash for unexpected expenses. Depends on income level.

Demand for money from assets, Speculative demand is the amount of money people want to hold as savings to benefit from transactions in financial and real assets. Depends on the interest rate level.

Average propensity to consume- the share of disposable income that households spend on consumption.

Average propensity to save- the share of disposable income that households save.

Demand is elastic- demand in which an increase in the price of a product leads to such a drop in the volume of demand that the total costs of buyers for this product decrease.

Demand is inelastic- demand in which an increase in the price of a product leads to such a drop in the volume of demand that the total costs of buyers for this product increase.

Comparative Advantage- the country's advantages in the production of goods, due to lower opportunity costs compared to other countries.

Tax rate- the amount of tax per unit of taxation.

Interest rate- the amount of payment for the loaned money and material resources paid by the borrower to the lender.

Stagnation- stagnation in all economic activities (in production, trade, etc.).

Stagflation- the state of the country’s economy, characterized by stagnation with the simultaneous development of inflationary trends.

Insurance- a form of accumulation of funds and reduction of the risk of expenses in the event of events undesirable for a person or company, based on the insurance company accepting the risk from economic transactions.

String- a set of lots at an auction, formed by goods of similar quality and having a common representative sample.

Structural crisis- imbalances covering two or more sectors of the economy and leading to structural unemployment.

Subvention- type of cash benefit from the state to local authorities; unlike a subsidy, it is provided to finance a specific event and is subject to return in case of violation of its intended use.

Subsidy- non-refundable state monetary assistance to producers of goods, designed to stabilize prices for their goods or help avoid ruin and continue their activities.

Consumer sovereignty- the right of owners of any types of resources (land, real estate, labor, money) to independently make decisions related to the disposal of these resources and their use.

Producer sovereignty- the right of a citizen or a company to independently determine what and in what quantity they will produce from existing at their resources, as well as to whom and at what prices the manufactured goods will be sold.

Customs- a government agency that controls the import and export of all goods passed across the country’s border, including luggage, postal items and all cargo, including transit.

Customs duty- tax on goods passed across the border. Distinguish imported And export customs duties.

customs tariff- a list of customs duties systematized by product groups.

Bonus- remuneration paid as a percentage of profits to directors and senior employees of joint-stock companies, banks, and insurance companies.

Targeting- establishing targets for regulating the growth of money supply in circulation.

Rate- a rate system that determines the amount of payment for production and non-production services.

Hoarding- accumulation (folding) of paper money by the population. Gold hoarding in the broadest sense means the creation of countries' gold reserves by central banks.

Rate of increase- the ratio of the increase in the value of an economic indicator to its initial level.

Growth rate- the ratio of the value of an economic indicator at a given time to its initial value taken as the reference base.

Trend (trend)- sustainable properties inherent in the economy of a country or enterprise. Based on the identified development trends, it is possible to draw conclusions about the course of economic processes in the future, i.e., make forecasts.

Tender- proposal for tendering, supply of goods, construction of facilities, performance of other works. Firms that receive a tender form fill it out, indicating their prices and other conditions. As a result of comparing the received documents, the auction organizers select the best option and conclude an appropriate contract for the performance of work with its applicant.

Shadow economy- a conventional name for economic processes not controlled by the state. The shadow economy includes: a) criminogenic, illegal activities, b) activities hidden from the state tax system, c) activities that are not subject to accounting due to their personal or family nature or the lack of meters.

Product- everything that can satisfy a need and is offered to the market for the purpose of commodity exchange.

Full partnership- a commercial organization whose participants (general partners) are engaged in entrepreneurial activities and are responsible for the property belonging to them.

Commodity farming- a way of organizing the economic life of a society in which people specialize in certain types of activities in order to produce goods or services for exchange with each other and benefit from it.

Bargaining- a competitive form of procurement (transaction), in which the buyer announces a competition for sellers.

Transaction costs- economic costs caused by the process of concluding transactions and contracts. These include, for example, the costs of collecting information about prices, consumer preferences and competitors’ intentions, etc.

Transfer- payments (expenses) of the state that do not lead to an increase in the national product and are carried out in the form of social security payments.

Trust- trust management.

Draft- bill of exchange - a written order from the creditor (drawer) to the borrower (drawee) to pay a certain amount of money to a third party - the holder of the bill (remitter).

Trust- one of the forms of monopoly, an association of enterprises, firms, in which the enterprises included in it lose their independence and are subject to a single management.

Lesion- loss of material and financial resources, loss or damage to property caused by various reasons.

Accelerated depreciation- the procedure under which the government allows the write-off of depreciation on a scale significantly exceeding the actual depreciation of fixed capital; essentially means a tax subsidy for entrepreneurship.

A service is an intangible benefit that has value; is of a commercial nature, produced by doctors, lawyers, banks, financial companies, etc.

Authorized capital (fund) - funds that are transferred by the founders into the ownership of the organization they created, which allows it to begin its activities.

Bill discounting is a banking operation consisting of the purchase by a bank (as well as other credit institutions or a broker specializing in this type of operation) of bills of exchange before the expiration date for their payment.

The discount rate is the interest rate at which the central bank provides resources to commercial banks.

Factoring is one of the types of trade and commission operations, when a bank or company buys from its client the right to receive money from its debtor.

Physiocrats - French economists of the 18th century. (Francois Quesnay and others), who believed that the only source of wealth is nature. Unlike the mercantilists, they transferred the subject of study of economic science from the sphere of circulation to the sphere of production, thereby laying the foundation for a scientific analysis of the reproduction of the social product under capitalism.

Phillips curve - the relationship between unemployment and inflation, which consists in the fact that inflation can be high only when the unemployment rate is low, and an increase in unemployment leads to a slowdown in inflation.

Finance is the system of education, distribution and use of funds (financial resources), as well as the totality of funds at the disposal of the enterprise.

A firm is the main economic agent of a market economy, an enterprise (organization) carrying out business activities; production association of homogeneous or related enterprises.

Fiscal policy is a set of financial measures of the state to regulate government expenses and revenues, one of the most important levers of state regulation of the economy.

Forward (term) transaction - a transaction with the delivery of the object of sale to the buyer after a certain period, i.e. in future. On a commodity exchange, a forward transaction, unlike a futures transaction, presupposes the presence of actually sold (purchased) goods.

Force majeure is the occurrence of extraordinary and inevitable circumstances that cannot be foreseen and which exempt from property liability for failure to fulfill the terms of the contract (earthquakes, floods, war, etc.).

Freight - 1) payment to the owner of vehicles for the transportation of goods by sea or air or passengers; 2) the cargo transported on a chartered ship, as well as such transportation itself.

Frictional unemployment is unemployment associated with the lack of employment of a worker during the transition from one job to another.

Free trade is a policy of liberalizing foreign trade in order to create the most favorable conditions for it.

Franchising (franchising) is a contract between a company and a dealer (organization or person engaged in sales), defining the latter’s exclusive right to operate in a certain territory for a specified time and in a prescribed form.

Futures is an agreement for the delivery and payment of goods by a certain date at a price agreed upon at the time of conclusion of the transaction, and not at the time of execution of the contract.

Hiring- medium-term rental of machinery and equipment without transfer of ownership of the goods to the lessee.

Hedging- currency risk insurance operations in the event of unfavorable price changes for transactions involving the supply of goods in the future. Hedging is performed through counter purchases (sales) of futures contracts.

Holding- a company whose assets include controlling stakes in other enterprises (the latter become subsidiaries in relation to the holding company).

Price- the amount of money paid per unit of goods; The value of a unit of goods expressed in money.

Securities- documents certifying their owner’s ownership of any property or money. Securities include: shares, bonds; checks, bills, certificates, etc.

Price discrimination- the practice of charging different prices for different units of the same product, not justified by any differences in costs.

Price elasticity- a concept characterizing the intensity of the reaction of supply and demand to price changes.

Price leadership- a situation where an increase or decrease in prices by the dominant firm in an oligopoly, called the price leader, is supported by all or the majority of firms in the market.

Pricing- the process of setting prices for a company's products.

central bank- the main bank of the country, the main function of which is control over the money supply in the country's economy.

Economic cycle- recurrent recessions and upswings in the development of production and the level of business activity in the economy of any country.

Cyclical unemployment- unemployment caused by economic recession.

Charter- an agreement between the shipowner and the charterer for the lease of the entire ship or part of it for a specific voyage or period.

Check- a monetary document confirming a written order from the drawer to another person (check holder) at the expense of money previously transferred by the drawer to the payer.

Net National Product (NNP)- an indicator calculated as the difference between the gross national product and depreciation charges.

Net profit- part of the profit remaining at the disposal of a commercial company after paying taxes and other obligatory payments.

Net exports- difference between export and import.

Strikebreaker- a person who refuses to participate in a strike or is hired by a firm when its workers go on strike.

Econometrics (econometrics)- one of the areas of economic and mathematical methods of analysis. Econometrics combines theoretical-economic, mathematical and statistical approaches to the object in one study and brings the results of the analysis to obtain specific numerical results.

Economics - 1) all types of human activities that allow them to provide themselves with material living conditions; 2) the science of the effective use of limited economic benefits (resources) in order to maximize the satisfaction of people's needs.

Economic policy- measures taken by the state in managing the economy to achieve certain economic and social goals.

Economic profit- the amount of money that remains at the disposal of the company after the repayment of its external obligations and the deduction of normal profit by the entrepreneur (owner) at his disposal.

Economic system- a set of organizational mechanisms by which limited resources are allocated in order to satisfy people's needs.

Economic mechanisms- ways and forms of combining the efforts of people in solving problems of ensuring their growth of well-being.

The economic growth- change in the results of economic functioning over time. There are extensive and intensive economic growth.

Economic good- a good, the possible scale of use of which is limited due to the insufficient quantity of this product to satisfy the needs of everyone and the receipt of which requires certain efforts on the part of people.

Export - 1) sale to other countries of goods produced by sectors of the domestic economy; 2) the total quantity or value of goods exported.

Extensive economic growth- economic growth, in which an increase in the production of material goods and services is achieved through the use of more factors of production (an alternative to intensive growth through the efficient use of existing factors of production).

Elasticity- the intensity of the response of demand or supply to price changes.

Embargo- a complete ban on trade relations with any state or a ban on the import (export) of certain goods into a specific country.

Emission- release of money or securities into circulation; carried out by the state or under its control.

Issuer- institution or enterprise producing the emission.

Income effect- the share of changes in the amount of demand for a cheaper product caused by a corresponding increase in real income.

Placement effect- that part of the increase in the quantity of demand for a cheaper product, which was formed due to the substitution (replacement) with a less expensive good of other goods that have now become relatively more expensive.

Economies of scale- an economic phenomenon consisting in the fact that with an increase in the scale of production in one company, the costs of each unit of goods decrease.

Efficiency- the relationship between results and costs incurred to achieve these results.

Entity- an organization, firm, corporation that meets certain criteria established by the legislation of the relevant country.

Explicit costs- cash payments by enterprises and firms to suppliers of production factors and production resources, subject to direct cash payment.

"Pit"- a section of the exchange premises, the floor level of which is lower than that of the entire trading floor. The “pit” is a place where exchange members are allowed to enter into exchange transactions; this place is also called the exchange ring, ring, floor.

Fair- a regularly, periodically organized market that operates in a certain place at a set time, as well as a seasonal sale of one or more types of goods.

Agricultural price parity is the relationship between the cost of agricultural and industrial products, in which the exchange between city and countryside is mutually beneficial.

Administrative monopoly is a monopoly that arises in a command economy due to the concentration, at the direction of the state planning authorities, of the production of certain products in one or a small number of enterprises.

Assets are everything of value that a person, company or government owns.

Excise tax is a tax levied on the buyer when purchasing certain types of goods and is usually set as a percentage of the price of this product.

A joint stock company (JSC) is an economic organization, the co-owners of which can be a large number of owners of funds, each of whom receives the right to a part of its property and profits, while at the same time being liable for its obligations only within the limits of the amounts once spent on the purchase of shares.

A share is a security sold to an investor in exchange for funds received from him for the development of the company and confirming his rights as a co-owner of the company’s property and its future income.

Barter is the direct exchange of some goods or services for others without the use of money.

Poverty is the standard of living of a family at which its income allows it to purchase only a small part of the standard set of goods and services for a given country, which forms the basis for determining the cost of living in a given country.

Non-cash funds are amounts stored in the accounts of citizens, firms and organizations in banks and used for settlements by changing information in documents confirming who owns what amount of such funds.

Unemployment is the presence in the country of people who are able and willing to work for hire, but cannot find work in their specialty or find employment at all.

Goods are everything that people value as a means of satisfying their needs.

Family wealth is the property of the family, free from debt.

Accounting profit is the difference between sales revenue and the firm's accounting costs.

Accounting costs are costs associated with the use of resources acquired by the company from other companies or citizens for the needs of the company.

Budget is a consolidated plan for collecting revenues and using the funds received to cover the expenses of federal or local government bodies.

Gross national product is the total market value of all final goods and services produced in a country in a year.

Currency (exchange) rate is the price of one national monetary unit, expressed in monetary units of other countries.

The quantity of supply is the volume of a product of a certain type (in physical measurement) that sellers are ready (willing and able) to supply to the market during a certain period of time at a certain level of the market price for this product.

External (side) effects are damage (or benefits) from the production of any good that have to be borne (or can be received) by people or firms not directly involved in the purchase and sale of this good.

External public debt is the debt of public authorities to governments, international banks and financial organizations that have lent money on the basis of government agreements.

Domestic public debt is the debt of government authorities to citizens, banks and firms of their country, as well as foreigners who purchased domestic loan securities.

Sales revenue is the amount of money received upon sale and is equal to the product of the number of goods sold and the price at which they were purchased.

Hyperinflation is a situation in the economy when the increase in the general level of prices in the country exceeds 50% within a month and this continues for more than three months in a row.

Government securities are obligations of the state to return the borrowed amount plus interest for the use of this money.

Public debt is the amount of loans taken by government agencies and not yet repaid to creditors.

The production possibility frontier is the volume of production that can be achieved by a country with the fullest use of its available production resources.

Free goods are goods, the available volume of which is greater than people's needs, and their consumption by some people does not lead to a shortage of these goods for others.

Money capital is part of family savings, which is transferred on a paid basis to firms for their purchase of productive capital.

Money is a special commodity that: 1) is accepted by everyone in exchange for any other goods and services, 2) allows all goods to be uniformly measured for the needs of exchange and accounting, and 3) makes it possible to preserve and accumulate part of current income in the form of savings.

Deposits are all types of funds transferred by their owners for temporary storage to the bank with the right to use this money for lending.

Market defects (weaknesses) are the inability of market mechanisms to solve some economic problems at all or in the best possible way.

Shortage is a situation in the market when buyers at the existing price level are willing to buy a larger volume of goods than sellers are willing to offer for sale at that price.

A state budget deficit is a financial situation that arises when the state plans to spend an amount greater than it can actually receive revenue from all types of taxes and payments.

Dividends are part of the net profit of a joint-stock company, which is paid to its shareholders in proportion to the value of the shares they own.

A directive national economic plan is a method of distributing limited resources based on government assignments that are mandatory for all enterprises in the country.

The natural rate of unemployment is a situation where only frictional and structural unemployment exist in a country.

Natural monopolies are firms that control the entire market for certain goods or services due to their unique

A will is a legally formalized gift of wealth that takes effect upon the death of its owner.

Borrowed funds (credit) are funds that are provided to a company for use for a strictly fixed time and for a fee established in the loan agreement.

The law of exchange is the relationship between the average amount of money that a country needs to ensure normal money circulation and: 1) average prices of goods and services; 2) the quantity of these goods and services; 3) the speed of circulation of money.

The law of supply - an increase in prices usually leads to an increase in the quantity supplied, and a decrease in prices usually leads to its decrease.

Law of demand - an increase in prices usually leads to a decrease in the quantity demanded, and a decrease in prices leads to an increase (all other things being equal).

Engel's law - as family incomes increase, the share of expenses on food usually decreases, on consumer goods it stabilizes, and on education, medicine, recreation and entertainment it increases.

Land - all types of natural resources available on the planet and suitable for use in the production of economic benefits.

Excess (overstocking) is a situation that arises in the market when, at the existing price level, sellers offer for sale a larger volume of goods than buyers are willing to buy at that price.

Import is the purchase by residents of one country of goods manufactured in other countries.

Investment is the transfer by owners of savings of their funds for use to commercial firms or the state in order to generate income.

An individual offer is an offer with which an individual seller enters the market.

Individual demand is the volume of purchases that an individual buyer is ready to make on the market at a given price level.

Inflation is the process of increasing the general price level in a country, leading to the depreciation of money.

Information is all the information that people need for conscious activity in the world of economics.

Capital is the entire production and technical apparatus that people created from the substance of nature to increase their strength and expand the capabilities of producing the goods they need.

A cartel is a method of monopolizing a market, which consists of concluding an agreement between manufacturers of a homogeneous product to divide the market between them and agreeing on sales volumes and prices for each of the cartel members.

The command system (socialism) is a way of organizing economic life in which capital and land are actually owned by the state, which also distributes all limited resources.

A commercial bank is a financial intermediary engaged in: 1) accepting deposits; 2) providing loans; 3) organization of settlements; 4) purchase and sale of securities.

Competition is economic rivalry for the right to obtain a larger share of a certain type of limited resource.

An indirect tax is a fee in favor of the state, which is taken from citizens or business organizations only when they carry out certain actions.

Credit emission is an increase by a bank in the country's money supply by creating new deposits for those clients who received loans from it.

A loan agreement is an agreement between the bank and the one who borrows money from it (the borrower) defining the obligations and rights of each party, and above all: the term of the loan, the fee for using it and guarantees of repayment to the bank.

Creditworthiness is the borrower’s willingness and ability to fulfill his obligations under the loan agreement on time, that is, to return the borrowed amount and pay interest on its use.

Liquidity is the degree of ease with which any assets can be converted by the owner into money.

Lobby is a form of legal defense of the interests of a certain group of companies or citizens of the country through the formation of factions of deputies in legislative bodies.

A manager is a hired manager of a company, accountable to its owner.

The price mechanism is the formation and change of market prices under the influence of the clash of interests of buyers and sellers who make their decisions without external coercion.

Market monopolization is a situation when one of the sellers or buyers accounts for such a large share of the total volume of sales or purchases in a particular product market that he can influence the formation of prices and terms of transactions to a greater extent than other participants in this market.

A monopolist is a firm that is the only seller in the market and therefore its individual demand curve coincides with the market curve.

“Price scissors” is the degree of violation of price parity, that is, the difference in the rate of growth of prices for agricultural products and industrial products for rural areas.

Cash - paper money and small change.

Taxation is a mechanism for withdrawing part of the income of citizens and firms in favor of the state to solve national problems.

Wealth inequality - differences in the amounts of regularly received nominal income (per family member) and the market value of property owned by families.

Nominal income is the amount of money received by a citizen or family as a whole over a certain period of time.

Normal profit is the income that could actually be received by the owner of capital by investing not in his own business, but in other commercial and financial projects with the same level of risk.

Normal goods are goods for which the quantity of demand increases as the income of buyers increases.

Loan collateral (collateral) is the property of the borrower, which can be seized from him by the bank and sold to cover those debts of the borrower that he himself cannot cope with.

The total utility of a good is the total benefit (benefit) received by a person, firm or country from using the entire volume of goods of a certain type.

Public goods are goods or services that people use together and that cannot be the exclusive property of anyone.

Total costs are the costs of purchasing the entire volume of resources that the company has already used to organize the production of a certain volume of products.

The volume of need is the amount of goods of a certain type that a person would like to receive to satisfy his needs if these goods were available free of charge and without restrictions.

Limited (economic) goods are means of satisfying human needs that can only be created by spending factors of production and are received, as a rule, only on the basis of exchange.

Oligopoly is a market in which competition occurs only between a small number of firms that crowd out other competitors.

An industry is a group of firms that produce similar or identical products.

Variable costs are those costs that grow (decrease) with any increase (decrease) in production volumes.

Acquisition is a method of monopolizing a market, consisting of buying up competing firms and incorporating them into a company seeking to become a monopolist.

The purchasing power of money is the amount of goods and services that can be purchased with a certain amount of money at a given time.

Fixed costs are those costs that remain the same with small changes in the volume of production of goods or services.

Needs are a specific form of manifestation of human needs, depending on living conditions, skills, traditions, culture, level of development of production and other factors.

Duty is a fee levied by the state from citizens and business organizations for providing them with a certain type of service or issuing a permit to carry out a certain activity.

Private property right is the right of an individual, recognized and protected by law, to own, use and dispose of a certain type and amount of limited resources (for example, a plot of land, a coal mine or a factory).

The marginal (marginal) utility of a good is the benefit (benefit) received from an additionally used unit of the good.

Marginal costs are the actual amount of costs that it costs to produce each additional unit of production.

Supply is the dependence that has developed in a certain period of time of the supply values ​​on the market for a certain product during a certain period of time (month, year) on the price levels at which this product can be sold.

An entrepreneur is a person who, at his own risk and largely at his own expense, creates a company.

Entrepreneurship is a special kind of service provided to society, consisting of the creation of new commercial organizations called firms for the production and distribution of vital goods.

Profit is the difference between revenue from sales of goods or services and the costs necessary to produce and organize the sale of these goods and services.

A preferred share is a security, the owner of which has the right to dividends of a fixed amount, regardless of how much net profit the company actually received, but does not have the right to participate in its management.

The principle of absolute advantage - countries benefit from trading with each other if each of them specializes in the production of goods that it can produce with absolutely fewer resources than its trading partners.

The principle of relative advantage - each country is more profitable to export those goods for which its choice prices are relatively lower than in other countries.

Progressive income taxation is a financial mechanism used to solve two problems: raising funds for the needs of the country and smoothing out differences in the levels of well-being of families.

The subsistence minimum is the amount of money necessary for a person to purchase the amount of food that allows him to survive, as well as satisfy the minimum

Productivity is the amount of benefits that can be obtained from using a unit of a certain type of resource over a fixed period of time.

Derived demand is the demand for factors of production, predetermined by the demand for goods and services for the creation of which these resources are used.

Manufacturing is the process of using labor and material resources to create goods or services.

Protectionism is a state economic policy, the essence of which is to protect domestic producers of goods from competition from firms in other countries by establishing various types of restrictions on imports.

A trade union (trade union) is an organization that represents the common interests of employees of certain professions or a certain industry in negotiations with entrepreneurs.

Direct tax is a fee in favor of the state levied on each citizen or business organization.

Labor force is the total number of citizens of a country of working age who have jobs, and citizens who cannot find work for themselves.

Equilibrium price is the price at which the volume of goods that producers (sellers) agree to offer for sale at that price coincides with the volume of goods that buyers agree to buy at that price.

Distribution - the provision of resources between firms, and produced goods - between people in accordance with some criteria by which these people are entitled to receive such benefits.

Real income is the amount of goods and services that a citizen or family can purchase in a certain period of time with their nominal income.

Reserve requirements are a mandatory proportion of the formation of partial reserves established by the central bank of the country.

Rent is the general name for the income of land owners and owners of other factors of production, the supply of which is strictly fixed.

Market - all activities associated with the purchase and sale of goods of a certain type in a certain region or various regions where goods can be delivered in the usual manner.

A market of monopolistic competition is a situation characterized by the fact that, in order to satisfy the same need, sellers begin to offer buyers many varieties of substitute products with significant differences, but each variety is offered to the market by only one seller.

The labor market is a set of economic and legal procedures that allow people to exchange their labor services for wages and other benefits that firms agree to provide them in exchange for labor services.

A market of pure (perfect) competition is a situation characterized by a clash in the competition for the money of buyers of many producers of the same type of goods, none of which has control over such a market share as to be able to influence sales volumes and market prices in their own interests.

A pure monopoly market is a situation where there is only one seller in the market.

Market supply is the total supply of goods on the market by all sellers.

Market demand is the total volume of purchases that all buyers in the market are willing to make at a given price level.

Savings are the remainder of income after paying all expenses associated with current consumption.

The velocity of money circulation is the number of times each monetary unit participated during the year in securing any transactions.

Market weaknesses (imperfections) are the inability of market mechanisms to solve some economic problems at all or in the best possible way.

A mixed economic system is a way of organizing economic life in which land and capital are predominantly privately owned, and the distribution of limited resources is carried out both by markets and with significant government participation.

Equity capital is money that is provided to a company in exchange for the right to co-own its property and income, and therefore, as a rule, is not subject to return and generates income depending on the results of the company’s work.

Aggregate supply is the total quantity of final goods and services that firms in a country can and are willing to offer to the market over a certain period of time at: 1) the prevailing price level in the country; 2) existing technology and 3) available resources of all types.

Aggregate demand is the total quantity of final goods and services of all types that all buyers in a country are willing to purchase over a certain period of time at the current price level.

Specialization is the concentration of a certain type of activity in the hands of a certain person or business organization.

Demand is the dependence that has developed over a certain period of time of the magnitude of demand in a given commodity market on the prices at which goods can be offered for sale.

Wage rate is the amount of money paid to an employee for labor services provided during a certain period of time (hour, shift or month) or necessary to perform a certain amount of work (for example, the manufacture of one part).

The cost of living is the amount of money that it costs to purchase, over a certain period of time (usually a month), a standard set of goods and services for most families in a given country.

“Shadow economy” is an economic activity carried out in such a way as to avoid paying taxes to the state.

Customs duty is a tax levied in favor of the state treasury from the owner of a foreign-made product when importing this product into the country for sale.

Current (perpetual) deposits are funds transferred by their owners for temporary storage to the bank, granting it the right to use this money for lending and retaining the owner of the funds the right to withdraw this money from the bank at any time without prior notice.

A product is a material item that is useful to people and therefore valued by them as a benefit.

Trade margin is a premium established by a trade organization to the price at which the product is sold by the manufacturer.

Trade is a voluntary and mutually beneficial exchange of the results of specialized production of goods.

A traditional economic system is a way of organizing economic life in which land is held in common by the tribe and scarce resources are distributed according to long-standing traditions.

Transactional (organizational and contractual) costs - the expenditure of time, effort and money on finding a supplier of resources or services, concluding an agreement with him on prices and other terms of the transaction, and monitoring that it is completed.

Transfer is a sum of money transferred by the state to the poorest citizens to improve their standard of living and formed from funds seized through taxes from wealthier citizens.

Labor is the use of people's mental and physical abilities to carry out work related to the production of economic goods.

The burden of work is a measure of the physical and nervous complexity and tediousness of performing professional duties.

A service is an intangible benefit that takes the form of an activity useful to people.

Factors of production are resources used by people to create the goods of life.

Physical capital - buildings, structures, machines, reclamation systems used to transform natural substances with the help of technology into benefits useful to people.

A financial intermediary is an organization that provides services to citizens and firms, helping the former to place their savings with the greatest benefit, and the latter to obtain additional funds with minimal effort.

Financial market is a market in which funds necessary for the acquisition of physical capital of firms are sold and purchased.

Company finances - the relationship between cash expenses and cash receipts of the company.

A company is an economic organization created specifically to produce goods and sell them on the market in order to make a profit for its owners.

The price of choice (opportunity costs) is the value of the most preferable of the benefits, the acquisition of which becomes impossible with the chosen method of using limited resources.

The price of money capital is the amount of income (interest) that a company must provide to the owners of savings so that they agree to provide it with these savings for the implementation of commercial projects.

A security is a document that can be bought or sold due to the fact that it certifies the rights of its owner to part of the property and income of the organization that issued this security.

Fractional reserve is the proportion of deposits made to a bank that it must and can constantly have at its disposal in order to be able to fulfill its obligations to depositors under normal operating conditions.

Human needs are the range and volume of goods that people would like to receive to satisfy their needs if these goods were available free of charge and without restrictions.

Human capital is the knowledge and skills accumulated by a person as a result of training and previous work activity and influencing his employability and the level of salary received.

Net profit is the part of profit remaining at the disposal of a business organization after paying taxes and other obligatory payments.

Economy - 1) the activities of people aimed at creating the goods they need; 2) a science that studies the behavior of people in the process of creating, exchanging and consuming the goods they need.

Economic profit is the difference between sales revenue and economic costs.

Economic efficiency is a method of organizing production in which the costs of producing a certain amount of products are minimal.

Economic systems are forms of organizing the economic life of society, differing in: 1) the method of coordinating the economic activities of people, firms and the state and 2) the type of ownership of economic resources.

Economic growth is a sustainable increase in the country's production capabilities.

An economic cycle is a period of time during which a country's economy goes through two main phases: boom and bust.

Export is the sale to residents of other countries of goods produced by sectors of the domestic economy.

Price elasticity of supply is the scale of change in the quantity of supply (in %) when the price changes by one percent.

Price elasticity of demand is the scale of change in the quantity of demand (in %) when the price changes by one percent.

An issuing bank is a bank that has the right to issue (issue) national monetary units and regulate monetary circulation in the country.

Money issue is the issue by the state of an additional number of banknotes.

Income effect - when the price decreases (or income increases), the product becomes cheaper in relation to a person’s total income and therefore the buyer is able to purchase this product in larger quantities without giving up his other usual purchases. And vice versa.

Economies of scale are a situation when a firm has the ability to increase the volume of its output to a greater extent than the volume of all resources it uses increases.

Abstraction- a method of scientific research that excludes from the analysis everything random (particular, secondary) and finds the essential, constant in the object under study.
Accelerator- coefficient opposite to the multiplier; characterizes the impact of national income growth on investment growth (see Multiplier).
Budget deficit- the amount of excess of government expenses over its income.
State regulation of the economy- state intervention in economic processes by influencing the functioning of market mechanisms using administrative (legislative), economic (monetary, financial, monetary, fiscal, etc.) methods and levers.
Demonopolization- elimination of state or other monopoly that dictates its terms to the market.
"Smith's Dogma"- assessment of the theory of reproduction by A. Marx due to the fact that Smith’s “price of the annual product of labor” comes down entirely to income, i.e. eliminates accumulation associated with the need to resume the reproductive process and expand its scale.
"The Iron Law of Wages"- follows from the population theory of T.R. Malthus means that due to natural population growth (correspondingly faster growth in labor supply) and diminishing land fertility, the level of wages in society allegedly will not be able to grow, invariably remaining at a low level.
"Clark's Law"- assessment of J.B. Clark's concept of income distribution based on the principles of marginal analysis of prices of production factors; in accordance with this “law,” the incentive to increase a factor of production is exhausted as the price of this factor begins to exceed the possible income of the entrepreneur.
"Say's Law"- concept of Zh.B. Say about the unimpeded and complete realization of the social product, i.e. crisis-free economic growth; in accordance with this “law”, when society achieves and observes the principles of “laissez faire”, production (supply) will generate adequate consumption (demand), i.e. the production of goods and services necessarily generates income, for which these goods and services are freely sold thanks to flexible and free pricing in the market.
"Gossen's Law"- the main theoretical principles of marginalism, one of the predecessors of which was G. Gossen; There are two “Gossen’s laws”, of which the first states that as the availability of a given good increases, its marginal utility decreases, and in accordance with the second, the optimal structure of consumption (demand) is achieved when the marginal utilities of all consumed goods are equal.
Institutionalism- one of the modern directions of economic thought, which was formed in the 20-30s. XX century as an alternative to the neoclassical direction of economic thought; its main feature is the study of the entire set of socio-economic factors (institutions), considered in interrelation and interdependence and in the historical context, as well as the idea of ​​social control of society over the economy.
Keynesianism- economic doctrine about the need and importance of state regulation of the economy through the widespread use by the state of fiscal, monetary policy and other active measures to influence the market mechanism.
Classical political economy- direction of economic thought (the period from the end of the 18th to the second half of the 19th century), whose representatives debunked the protectionist ideas of mercantilism and laid the scientific basis for methodological and theoretical studies of market economic relations; The main feature of the direction is the propaganda of the ideas of “pure” economic theory and the expediency of “complete laissez faire”, i.e. absolute non-interference of the state in business life and the mechanism of a self-regulating economy.
Quantity theory of money- a theory that proves:
a) according to the orthodox version of the “classics”, the dependence of changes in prices for goods solely on the amount of money in circulation;
b) according to the “neoclassical” version, the possibility of adjusting prices for goods in connection with the cost of monetary material, the unstable level of the speed of circulation of money and the amount of commodity mass, as well as taking into account the degree of liquidity of money.
Monopolistic competition- a market situation in which the degree of increasing interchangeability of competing goods, i.e. “Product differentiation” allows the seller to control the level of supply and price and achieve an absolute monopoly on his own product, but at the same time he (the seller) continues to be exposed to competition from other sellers who have more or less imperfect substitutes.
Competition is imperfect- a market situation in which a small number of large producers (sellers) have the opportunity to influence the level of market prices.
Perfect competition(free, pure or complete) - a market situation with many sellers and buyers of homogeneous products who cannot influence the price level on the market.
"Marshall Cross"- a graphical representation of the intersection of the demand curve and the supply curve, at the point of intersection of which an equilibrium is established between them, as well as an equilibrium, i.e. stable price.
"Phillips Curve"- an empirical curve characterizing the relationship between the annual percentage change in wages in monetary terms and the level (share) of unemployment.
"Indifference curves"- empirical curves reflecting the preservation of the total utilities of consumed goods in various combinations of their combinations and the preference of some combinations over others.
Liquidity- the ability of material assets and other resources to quickly turn into money; the ability of an enterprise to pay its obligations on time and convert balance sheet asset items into cash.
Macroeconomics- the economy as a whole or its most important components; branch of economic theory that studies the economy as a whole or its main components.
Marginalism(marginal economic theory) - a generalization of ideas and concepts, which is based on the study of marginal economic values ​​as interrelated phenomena of the economic system at the micro and macro levels.
"Margin Revolution"- occurred in the last third of the 19th century. transition from the values ​​of the “classical school” to the values ​​(theoretical and methodological principles) of marginalism.
Mercantilism- direction of economic thought (period of the 16th - 18th centuries), whose representatives identified the country’s wealth with money and considered it as the most important means of economic growth, and saw the source of wealth in foreign trade, in ensuring a positive trade balance; The main feature of the direction is the propaganda of the ideas of protectionist economic policy of the state, i.e. his participation in the management of the economic system.
Metal theory of money- a theory that interprets the conditionality of the value of money by the weight of the coin minted by the state.
Microeconomics- a section of economic theory that studies economic units, for example firms, any individual economic objects or phenomena.
Monetarism- an economic theory based on the determining role of the money supply in circulation in the implementation of policies to stabilize the economy, its functioning and development.
Monopoly- an enterprise or group of enterprises that has a dominant position in the market, which allows them to control and determine prices; a form of market controlled by one or more enterprises.
Monopoly price- the type of price set by the monopoly. Depending on its goals, a monopoly can set monopolistically high or monopolistically low prices.
Monopsony- a situation where there are a lot of small sellers and one single buyer on the market.
Cartoonist- multiplier; a category used in economic theory to characterize and define various relationships where the multiplier effect occurs. In particular, in Keynesianism, the multiplier is understood as a coefficient characterizing the dependence of changes in income on changes in investment.
"The Invisible Hand"- a concept introduced into scientific circulation by A. Smith, according to which such a relationship is assumed in the interaction of economic entities and the state when the latter, without opposing objective economic laws, does not interfere in the process of the “natural”, i.e. free functioning of the market mechanism.
Neutrality of money- the theoretical position of the “classics”, which simplifies the essence of a monetary commodity to a certain technical means convenient for exchange, and leads to the orthodox version of the quantity theory of money.
"Neoclassical synthesis"- P. Samuelson’s term, used “to denote... the synthesis of those truths that were established by classical political economy and the provisions proven by modern theories of income generation”; the broader semantic load of this term in economic literature indicates the formation of a new universal doctrine of modern economic science.
Neoclassical theory- one of the modern directions of economic thought, which was formed in the 90s. XIX century based on both the ideas of economic liberalism and “pure theory”, and the principles of systemic analysis of marginal (marginal) indicators and microeconomic research, being an alternative to classical political economy; since the 30s XX century The theoretical and methodological tasks of the “neoclassicals” were supplemented by macroeconomic research and problems of social orientation and state regulation of the economy.
Neoliberalism- economic concept of state regulation of economic processes on the principles of achieving free (“clean”) competition of entrepreneurs, freedom of markets and other elements of economic liberalism; an alternative concept to Keynesianism of state regulation of the economy.
Nominalistic theory of money- a theory that interprets the conditionality of the value of money to be minted by the denomination of the coin, which is established by the state.
General equilibrium- a stable state of a competitive economy, in which the consumer maximizes the value of the utility function, and competing producers maximize their profits at prices that ensure equality of supply and demand.
Oligopoly- dominance of a few largest firms in the market.
"Pareto Optimum"(social maximum utility) - a concept intended to evaluate those changes that either improve the welfare of all, or do not worsen the welfare of all, with an improvement in the welfare of at least one person; a concept that allows you to make the optimal decision to maximize profits.
Competition Policy- a set of laws and government measures aimed at the maximum possible implementation in practice of the ideal of full (free, clean) competition.
Political Economy- a term introduced into scientific circulation by A. Montchretien, who published “Treatise of Political Economy” in 1615; the name of economic science designed to solve problems:
a) state economy (mercantilist version);
b) free private enterprise (version of classical political economy).
Marginal utility- ability to satisfy the least intense need; the additional utility that a consumer receives from an additional unit of a good or service.
Protectionism- a policy aimed at protecting the national economy from foreign competition by directly or indirectly restricting the import of goods.
"Psychological Law"- the position of J.M. Keynes, according to which “as real income increases, society wants to consume an ever-decreasing part of it.”
Equilibrium price- the price of a product when supply and demand are equal.
Liquidity bias- the desire to put aside part of the money in reserve in the form of bank or securities.
Method for determining total utility- a method for assessing the marginal utility of consumed goods; the method is called additive if the marginal utility of homogeneous goods with each subsequent unit is characterized by a decreasing tendency, and multiplicative if the marginal utility of homogeneous goods is multiplied by their quantity.
"Fair price"- a category of economic teaching of the canonists, which “explained” the legitimacy of administrative (non-market) pricing and the possibility of “selling a thing at a higher price” in order to avoid causing damage to both its “owner” and the entire “social life”.
"Theory of imputation"- the theory of pricing of the “Austrian school”, the essence of which boils down to the process of sequential intervention of the share of the cost (value) of a “first order” good with the goods of “subsequent orders” used in its production.
Production cost theory- one of the costly interpretations of the theory of value, according to which the value of a product is determined by the costs in the production process of the factors “labor”, “capital”, “land”.
"Expectation Theory"- theory of E. Boehm - Bawerk about the mechanism of the origin of interest on capital due to the productive essence of the time factor; specific resource “capital” depending on its size and operating time, i.e. “expectations”, provides a greater or lesser interest on capital.
Labor theory of value- one of the costly variants of the theory of value, according to which the value of a product is created by a certain amount of labor expended.
"The phenomenon of excess power"- the position put forward by E. Chamberlin in the theory of monopolistic competition; arises in the process of the activity of the seller - a monopolist, striving to take possession of “known parts of the general market”, and is supported by his patents, brand names, craftsmanship, and special talents.
Physiocracy- translated from Greek “power of nature”; the course of classical political economy (second half of the 18th century) in France, whose representatives proceeded from the decisive role in the economy and consciousness of the national wealth of the land and agricultural production.
Economic(economic) system - V. Eucken’s concept of two “ideal types” of economic systems: a centrally controlled economy (economic life is regulated by plans emanating from one center) and an exchange economy (each economic entity is guided by its own plans).
"Robinson's Farm"- a term introduced into scientific circulation by K. Menger, used to analyze economic relations and indicators at the level of an individual economic entity (individual), i.e. at the micro level, taking into account the phenomenon of property and the relative rarity of human egoism.
Chrematistics- a term used by Aristotle to designate the unnatural sphere of human activity; the careless art of making a fortune through large trade deals and usurious transactions.
Pure economic theory- the theoretical and methodological position of the “classics” and “neoclassics”, indicating their commitment to “stick to pure knowledge”, “pure theory”, i.e. without subjectivist, psychological and other non-economic layers in economic analysis.
Economics- a term introduced into scientific circulation by A. Marshall in his work “Principles of Economics” (1890); the name of economic science, which, according to P. Samuelson, “implies economy or maximization” and is devoted to “the problem of the optimal volume at which profit reaches its maximum.”
Economic liberalism(laissez faire policy) - a policy of state non-interference in the economy; a set of economic freedoms; free competition, free enterprise, free prices, free trade, etc.
Elasticity of supply- supply response to price changes.
Elasticity of demand- reaction of demand to price changes.
"Veblen Effect"- characteristic of a situation in which a decrease in the price of a product is perceived by the buyer as a deterioration in its quality or a loss of its “activity” or “prestige” among the population, and then the product ceases to be in consumer demand, and in the opposite situation, on the contrary, the volume of purchases with an increase in price may increase.
Effective demand- a term from the concept of J.M. Keynes about the potential and state-stimulated demand for investment and means of production.