DICTIONARY

IN
ECONOMICS


Stephie Andielic F. Mabaga
IV - Daniel


Acceleration Principle - states that capital
stock depends on the level of income and
production
Agrarian Reform - broad issue that tackles the
changes in the structure and general plan of the
action in the agricultural sector
Agriculture - deals with the cultivation of soil,
harvesting of crops, and raising livestock
Allocation - refers to the mechanism that deals
with the distribution of natural resources, human
resources, and physical resources.
Arbitration - procedure in which a dispute is
submitted, by agreement of the parties, to one or
more arbitrators who make a binding decision on
the dispute
Average Revenue - the total revenue divided by
output or quantity produced
Balance of Payment - comprehensive
statement of accounts, which includes the
demand and supply for foreign countries
Balance of Trade - ration between a countrys
exports and imports
Bank - an institution for lending, borrowing,
issuing, or managing money
Barangay - comes from the Malay word
balangay which means sail boat
Bare-living Standard - to satisfy all the basic
needs, the income of the people under this
standard is barely enough for their needs.
Barter - the exchange of goods for other goods
Benefit - it is what you gain from choices
Biology - the study of living things
Birth Rate - refers to the number of children
who are born
Blue Collar Job - jobs that require more
physical effort and talents in doing the job
Boleta - ticket to have space in the galleon
Bonds - certificate of ownership
Boycott - concerted action of workers and their
union to refrain from working with the
establishment
Brain Drain - it happens when professionals go
to other countries to work or even settle
permanently
Brawn Drain - occurs when our labor force or
workers with technical and vocational know-how
opt to use and apply their knowledge in a foreign
land
Business Cycle - change in business activity
that occurs for years (period of prosperity,
recession, depression, recovery)
Capital Gains - profit made due to an increase
in the market price of a stock from the buying
price
Capital Goods - manufactured goods used to
produce other goods
Capitalism - an economic system in which the
ownership of land, capital, labor, and
entrepreneur as factors of production are in the
hands of the private sector or individuals
Capital Market - market for securities where
business enterprise and government can raise
long-term funds
Capital Resources - man-made resources
Capitals - are produced goods used to produce
other goods
Cartel - an organization of businessmen who
control the price and quantity of the products and
the distribution of the produced goods to gain the
maximum profit
Cash Dividend - dividend in the form of cash
Central Bank - bank of the banks
Character - sum total of personality traits which
would distinguish an individual from another

Check - a piece of paper where the amount of
money, name of bank, to whom it will be paid is
written
Chemistry - centers its study in the composition
of chemicals for the creation of variety of goods,
which are needed in the economy
Classicists - economists from the Classical
School
Closed Shop - another form of labor dispute
Collateral - anything of value that you promise
to give if you cannot pay back the money that is
borrowed
Collusion - an agreement between two or more
parties, sometimes illegal and therefore
secretive, to limit open competition by deceiving,
misleading, or defrauding others of their legal
rights, or to obtain an objective forbidden by law
Comfort Standard - income is sufficient enough
to enjoy the comforts in life.
Common Reaction - same opinion between two
or more parties
Common Stocks - represent the part ownership
of the corporations
Complementary Goods - good with a negative
cross elasticity of demand, in contrast to a
substitute good
Conciliation - first step to settle the conflicts
between the management and workers
Construction - building of structures like
factories, high rise buildings, and warehouses
Consumer Services - services rendered by
different business firms to repair and improve the
consumer products
Contracting - process where the government
signs a contract that allows private corporations
to manage goods and services
Cost of Living - the amount of money needed to
purchase the basic commodities which is
necessary to survive
Counterfeiting - an act of imitating the original
form of money, and is illegal
Credit Cards - the so-called plastic money
Creditors - individuals who give loans
Cronyism - giving jobs to friends
Cyclical Unemployment - happens when there
is economic slowdown; industries tend to lay off
workers.
Death Rate - the number of person who died
Decency Standard - income is much higher and
better
Demand - refers to the number of goods and
services that consumers are willing and able to
buy at alternative prices at a given period of time
Demand Curve - graphical representation of the
inverse relationship of price and quantity
demanded which the consumer is willing to buy
Demand Function - mathematical expression of
the relationship of two variables
Demand Schedule - table showing the units of
the product which the consumer is willing and
able to buy at different prices
Demographer - the person who studies the
structure of population
Demography - the science of vital and social
statistics, as of the births, deaths, diseases,
marriages, etc., of populations
Dendrothermal energy - energy that comes
from the steam produced by burning woods
Dependency Ratio - is an age-population ratio
of those typically not in the labor force
Deregulation - releasing certain industries from
government control and regulation
Devaluation - refers to the decrease in the
value of peso compared to a foreign currency like
the US dollars
Direct Appropriation Stage - hunting and
fishing stage
Divestiture - selling or transfer of business
operation from the government control to the
hands of the private corporations
Domestic Trade - exchange of goods and
distribution of goods and services for local
consumption
Economics - the science that deals with the
production, distribution, and consumption of
goods and services, or the material welfare of
humankind
Economy - described as a simple process
involving two sectors, the household and
business firms
Elasticity - describes how consumers respond to
price changes
Employment - is the situation where people
have a job
Encomienda - is a piece of land given to the
loyal servants of the King of Spain
Equilibrium - is a market condition where
quantity supplied equals quantity demanded
Equilibrium Price - is the price level that both
buyers and sellers agree to have a transaction in
the market
Equilibrium Quantity - refers to the quantity of
products that buyers and sellers have agreed to
transact at a specified price
Ethics - morality of man
Fertility - is the natural human capability of
producing offspring.
Fiat Money - it can only be accepted if it is
considered as legal tender
Fiscal Policy - policy that deals with government
expenditures and taxes
Floor Price - refers to the lowest price in buying
the products of farmers
Foreign Trade - exchange of products and
services of one country to another
Free Trade - is concerned with the exchange of
goods and services without trade barriers like
tariffs and quotas
Friar Lands - land owned by friars
Frictional Unemployment - occurs when
people are moving from one job to another
GDP (Gross Domestic Product) - refers to the
total market value of goods and services
produced within a country in a given period of
time
Globalization - refers to processes of
international integration arising from the
interchange of world views, products, ideas, and
other aspects of culture
GNP (Gross National Product) - the
accumulation of all the products and services
produced in the country
Guilds - the union of workers of specific skills
History - recorded struggle of man from the past
to the present
Hoarding - keeping of supply of goods by the
businessmen to wait for price increase
Huks - nuisances
Hyperinflation - the price is continuously
increasing every hour, day, and week
Imperfect Competition - there are only few
players in the market who control and manipulate
the price of commodity
Income - the amount of money received as
payment for produced goods and services
Income Distribution - refers to how the
national income is divided among all sectors of
the economy
Individual Choice - decisions made by people
acting separately from one another
Industrial Credit - the one used in the
establishment and operations of industries
Industrialization - expansion of industries and
the mechanization of all forms of production
Infant Mortality - is the death of a child less
than one year of age.
Inferior Goods - the goods for which the
demand does not increase even when the income
increases
Inflation - the continuing increase in the general
price level of commodities
Inventory - the normal quantity of goods stored
by the business firms for future use
Investment - the injection into the circular flow
of an equal the household savings
Kinked Demand Curve - happens when one
business firm increases its price but the
competitors do not follow and act differently, so
the business firm the increases its price has to
collaborate with other firms
Labor force - refers to the person aged 15 years
and above, maybe unemployed or employed who
posses certain skills, abilities, talents, and
maturity to be a part of the production

Labor Union - an organization that provides
assistance and protection to the workers
Laissez Faire - let alone policy of Adam Smith
Land Reform - program that aims to provide
lands to the farmers
Law of Supply - states that when the price of
the product is high, producers are willing to sell
more but if the price is low, producers tend to
decrease the supply assuming all other things
remain constant
Liberalization - removal of restrictions so that
imported products can freely enter our market
Macroeconomics - the study of the whole
economy
Manor - center of agricultural economy during
the manorial system
Manufacturing - processing of raw materials
into finished products
Marginal Revenue - the additional revenue per
unit which the producer sold
Marginal Theory - wages are based on the
additional products, which are produces by the
workers
Marginal Utility - the principle that limits
consumption and makes it predictable
Market - is the place where the two actors meet
Market Demand - is the combination of all the
demands of the consumers in the market
Market Supply - is the sum total of products
that all producers or sellers sell in the market
Mass leave - concerted work stoppage where
the workers avail en masse of their paid leaves
Mathematics - the science of numbers and their
operations
Mediation - a way of resolving disputes between
two or more parties with concrete effects
Mercantile Credit - commercial credit
Microeconomics - centered in discussing the
small unit of the economy
Minimum Wage - lowest wage to be paid to
workers which is approves by the government
Mining - extraction of precious metals and
various minerals in the different parts of the
country
Monetary Policy - the manipulation and control
of money supply and even credit conditions in the
economy
Money - anything used as a medium of
exchange, which is accepted by everybody
Monopolistic Competition - is known as the
combination of monopoly and perfect competition
Monopoly - a market structure with only one
seller and producer who controls the biggest
portion of supply in the market
Monopsony - a market structure where there is
only one buyer in the market
Nationalizing of Corporation - principle
involving the ownership and operation of vital
industries by the government
Nepotism - giving unfair advantages to family
members was rampant
Nominal GNP - current prices
Nominal Wage - amount received as payment
for the services and produced goods by the
workers
Non-performing Assets - corporations that are
not performing well
Notice of Strike - notification filled by a duly
registered labor union about its intention to go on
strike
Oligopoly - a market structure where the
number of producers is few
Optimum Level - the ideal or best level of
production wherein a businessman can gain profit
and acquire a minimum loss in the business
Payee - a person or a firm to whom a
promissory note or check is payable
Perfect Competition - kind of market where
there are many sellers and buyers of the same
economic products
Physiocrats - group of people who believed in
the importance of nature in the economic
development of the country
Picketing - is a form of protest in which people
(called picketers) congregate outside a place of
work or location where an event is taking place
Population - refers to the number of persons
living in a particular area
Population Density - refers to the number of
person living per square kilometer
Poverty Standard - people who belong to this
standard are considered as the poorest of the
poor. They dont have the capacity to meet their
basic needs.
Preferred Stocks - represent the non-voting
ownership of the corporations
Price - is the important factor that determines
the quantity of goods that suppliers are willing to
sell
Price Ceiling - refers to the highest price or
maximum price declared by the government for a
particular product
Price Control - is implemented if a state of
calamity is declared
Price Elasticity - is the percentage in the
quantity demanded of a product divided by the
percentage or the said product
Price Support - is implemented to help the
producers recover their production cost and to
gain some profit
Private Goods - goods and services provided by
individuals for personal use
Privatization - transfer of ownership and
management of corporation from the government
and management of corporation
Productivity - is the efficient use of resources to
produce goods and services
Professional Tax - levied on specific
occupations that are lawfully pursued like
doctors, lawyers, and accountants
Progressive Tax - imposes a higher percentage
rate of taxation on person with high income than
those with low income
Promissory Note - a written promise in paying
the debt on a specific date
Property Tax - imposed on persons with real
properties whether acquired, inherited, or
donated based on their market value
Proportional Tax - imposes the same
percentage rate of taxation on everyone
regardless of his or her income
Public Domain - lands that belong to the state
and available for everyone to use
Public Goods - goods and services provided by
the government
Public Sector - represents the sector that
provides the needs of the people
Pump Priming - government can raise its own
expenditure to boost the economy
Quota - is the limitation on the quantity of
exported and imported goods
Quota - the limitation on the quantity of
exported and imported goods
Real GNP - constant prices
Real Wage - value of products and services
which the worker can buy from the income he
receives
Revenue - the amount of money received from
selling the products
Sabotage - slowing down the production to
make the company suffer in terms of profit
Saving - setting aside a portion of a persons
income for future use
Savings - income not spent for consumption
Scarcity - insufficiency or shortness of supply to
the needs of the people
Scientific Method - a method of research in
which a problem is identified, relevant data are
gathered, a hypothesis is formulated from these
data, and the hypothesis is empirically tested
Seasonal Unemployment - losing the job due
to change of season or weather
Securities Market- economic market buyers
and sellers of corporate and government
securities meet
Services - distributing, creating, and selling of
electricity, gas, and water
Slavery - is a system under which people are
treated as property to be bought and sold, and
are forced to work
Social Choice - decision made by the
government to satisfy the needs of the society
Sociology - the science that studies the
composition of society, social relationships, and
social institutions
Specialization - condition where our nation
produces more with less cost
Standard of living - refers to the quality and
quantity of products consumed by the individuals
for the satisfaction of their needs
Stock Dividend - dividend given thru the
stockholders in the form of stock
Stockholder - owns a stock of a corporation
Stock Market - place where trading securities
occur
Stock Rights - option given to the present
stockholders to buy additional shares of stock at
a price lower than the market place
Stocks - shares of ownership in corporation
Strike - temporary work stoppage of workers
Structural Unemployment - losing the job due
to decline in industries due to technological
advancement and change in consumer taste
Subsidy - refers to the assistance provided by
the government to small-scale businessmen and
farmers to enable them to produce more
products
Subsistence Theory - discussed the wages
reliance on the level of needs of workers
Supply - refers to the quantity of goods and
services, which the supplier is willing and able to
trade at alternative prices at given time
Supply Curve - refers to the graphic
representation of the direct relationship of price
and quantity of products, which the supplier is
willing and able to sell
Supply Function - is the mathematical equation
of two variables that show the direct relationship
of price and supply
Supply Schedule - a table showing different
units of the product that can be sold at different
prices
Survival - one of the goals of people and society
Tariff - is the tax levied on imported goods
Tax - is a compulsory contribution imposed by
the government to individuals and business firms
Taxes - main source of government income
Thrift bank - savings bank
Treasury Bills - a type of bond used as evidence
of government loans to the public
Underemployment - is the situation when the
working hours of workers are less than eight
hours
Underground Economy - market in which
goods or services are traded illegally, also called
the Black market
Unemployment - is the situation where people
cannot find a job and no job is available in the
market
Unitary - the value of quantity demanded and
the change in price is equal to one percent
Utopia - is a community or society possessing
highly desirable or perfect qualities. The word
was coined in Greek by Sir Thomas More for his
1516 book Utopia
Value Added Tax - is placed on the value of the
product at each stage of production
Wage-fund theory - explains the importance of
allocating fund for the wages that come from the
capital of the businessmen
Wages - refer to monetary remuneration of
workers according to contract on an hourly, daily
or piecework basis
Warrants - gives the stockholders the right to
subscribe to new shares at a set price during a
specifies period of time
White Elephant Projects - government projects
which are not beneficial for the industrial sector
Workers - One who works at a particular
occupation or activity