Economics

Items

• price formation

  The process by which prices of goods and services are determined in a market.
• price leadership

  A market situation where one dominant firm (the price leader) sets the price for its products or services, and other firms in the industry follow suit, either by adopting the same price or a similar price.
• price mechanism

  How prices of goods and services are determined in a market economy, typically through the interaction of supply and demand.
• price searcher

  A firm that has some degree of control over the price it charges for its goods or services, meaning it can influence the market price to some extent.
• price-taker

  An entity, typically a firm or individual, that has no power to influence the market price of a good or service.
• principal

  The original amount of money borrowed in a loan, invested, or deposited.
• private company

  A business or organization owned by individuals or a group of individuals, rather than the government.
• producer

  An individual, company, or entity that creates goods or services.
• production

  The process of combining various inputs such as labour, capital, and resources to create goods or services of value and utility.
• productivity

  The efficiency of converting inputs such as labour, capital, and resources into goods and services.
• productive efficiency

  An economy's ability to produce the maximum possible output with the available resources and technology.
• profit

  The excess of total revenue over total costs, including both explicit and implicit.
• profit maximization

  The process by which a firm aims to achieve the highest possible profit, typically by finding the optimal level of output and price where total revenue exceeds total costs by the greatest amount.
• prohibitive tariff

  A tax on imports that is so high that it effectively eliminates all trade in the specific good or service it targets.
• property rights

  The legal and theoretical ownership of resources, whether tangible or intangible, and the ability to control their use, transfer, and enjoyment.
• prosperity

  A state of thriving economic well-being, characterized by economic growth, high levels of employment, and rising incomes.
• public company

  An organization that's sold a portion of itself to the public via an initial public offering (IPO).
• public finance

  The way governments manage their revenue, expenditure, and debt to influence a country's economy.
• real income

  The purchasing power of an individual's income, meaning how much they can actually buy with their money after accounting for inflation.
• recycling

  The process of converting waste materials into new materials and objects.
• regulation

  Rules and policies imposed by a government or regulatory body to influence economic behaviour, particularly of businesses and financial institutions.
• remuneration

  The total compensation someone receives in exchange for their services or work for a company or organization.
• resources

  Anything that can be used to create value or achieve economic goals.
• revenue sharing

  Revenue sharing is a distribution system where profits and losses generated by a business are shared among its stakeholders.
• sales

  Transactions between two or more parties in which goods or services are exchanged for money or other assets.