Economical, Business, and Financial Terms +

The ability to produce a unit of a product using fewer resources than any another producer: A country has an absolute advantage if its output per unit of input of all goods and services produced is greater than that of another country.

If one person, firm, or country can produce more of something with the same amount of effort and resources, they have an absolute advantage over other producers.

The question of what to specialize in and how to maximize the benefits from international trade is determined according to "comparative advantage" that identifies which activities a country, firm, or individual is most efficient at doing.

Both comparative and absolute and advantages may change significantly over time.

The set level of poverty to meet human necessities, like food, shelter, healthcare, and water over a prolonged length of time: The absolute poverty standard is the establishment of a specific income level for a given-sized household below which the household is judged to be living in a state of poverty.

An investment that depends on the growth of output which implies that an investment will be unstable: The accelerator principleI relates to the fall of financing simply because output grows at a slower rate. For investment to remain stable, output growth must be constant.

Revenues minus explicit (accounting) costs: The accounting profit is the net income of a company after salaries, rent, and expenses or material have been withdrawn from the total turnover or total sale.

Addition to capital investment or capital stock from profits: Accumulation refers to the increase or growth of capital by addition particularly when it is consistent or unceasing.

A deliberate discretionary stratagem by government action taken to accomplish specific economic or social goals: An activist policy is a selection of money policy and fiscal policy actions on the basis of perceived economic conditions and which modifies as economic conditions change.

An issue that takes place when a buyer or seller entering a disadvantageous contract on the basis of incomplete or inaccurate information because the cost of obtaining the relevant information is higher for a buyer or seller than the other party involved in the transaction: An adverse-selection problem can arise when a less-informed individual is likely to buy a used car where low-quality vehicles that are defect or unsatisfactory are for sale.

Substantial wealth and economic influence or power: Mrs. Hathaway reached a level of affluence after working many years at the firm and then able to join the high society.

Sum: total:The aggregate is the total of some measured element, or elements, of the economy.

The total spending on goods and services by all sectors, including consumers, business, government, and foreign: When taxes rise, the result is a reduction in the aggregate demand, particularly in vehicles and durable items.

A macroeconomic situation in which national demand for goods and services equals a national supply of goods and services: The economy in anggregate equilibrium operates in full employment and and variation in aggregate demand can only lead to the change in the level of prices, not to a change in the output.

Growing, processing, and marketing of crops by large corporations instead of by individual farmers: Jeff decided to go into agribusiness instead of trying to have his own vegetable farm.

Growing crops and raising livestock; especially, as a basis of economic structure: Agriculture includes the science of cultivating the ground and harvesting the crops, besides rearing and taking care of the livestock.

Pertaining to policies or laws designed to curb monopolies: Antitrust laws were put into effect in order to protect fair competition among firms and companies.

The taking of the liabilities of others as in a merger: Assumed debts are liabilities which a company takes over or comes into possession of when it fuses with another company that has such commitments.