efe

Market oriented

a business which develops products which have been

business

researched and designed to meet the needs of custom-

ers

Mainstream economics

the study of how market works

Marginal utility

the utility of one unit of a commodity

Market

an institutional arrangement that promotes trade or

exchange of goods

Market share

the amount of an economic good that will be offered

for sale in the market at a certain price or time

Market oriented

setting a price based on an analysis of the market

pricing

Marketing

the action of identifying, satisfying and increasing the

buyer’s demand for a company’s products by means

such as advertising, sales promotion, pricing, carrying

out market research and developing and testing new

products

Market research

1) the systematic and objective classification, colle c-

tion, analysis and reporting of information about a

particular marketing problem; 2) the process of gaining

information about customers, competitors and market

trends through collecting primary and secondary data

Mature

in business, especially regarding bills of exchange or

insurance in policies, to become due for payment or

repayment

Merger

an amalgamation or joining of two or more firms into

an existing firm or to form a new company

Microeconomics

part of economic study oferring a detailed treatment of

one aspect of economic behaviour ignoring interactions

withthe rest of the economy

Monetary policy

the control, by the government, of a country’s currency

and its system for lending and borrowing money, esp e-

cially through the supply of money

Monetary union

permanently fixed exchange rates within the union,

free capital movements and a single monetary authori-

ty setting the union’s money supply

201

Money

any article or commodity that is generally acceptable

by law and custom as a means of payment

Monopoly

a market with a single buyer who has some influence

over the price of his input

Mortgage

the advance of a loan to a person or business (the bor-

rower/mortgagor) by other persons or businesses; the

thing given as a security

Multinational

A firm that owns production, sales and other revenue-

enterprise

generating assets in a number of countries

Multiplier effect

denotes the phenomenon whereby some initial increase

(or decrease) in the rate of spending will bring about a

more than proportionate increase (or decrease) in na-

tional income

Natural monopoly

a market with a single firm which can serve that mar-

ket at lower cost than any combination of two or more

firms

Natural rate of

the rate of unemployment when the labour market is in

unemployment

equilibrium

Non-tariff barriers

differences in national regulations or practices which

prevent free movement of goods, services and factors

across countries

Oligopoly

a market with a small number of sellers

Participation rate

the percentage of the population of working age who

declare themselves to be in the labour force

Payment

a transfer of funds in any form between two parties

Prevailing price prices

now current in the market

Price

the money value of a unit of a good, service, financial

security or assets which a buyer is required to pay a

seller to purchase the item

Prices and incomes poli-

the application of controls on prices and incomes (par-

cy

ticularly wages) in order to stop or slow down inflation

in an economy

Pricing

decision-making process involved in setting a price for

a good or a service

Primary data

information which has been gathered for a specific pur-

pose through direct investigation such as observation,

surveys and through experiment

Product oriented busi-

a business which develops products with little or no

ness

market research and which it hopes will prove success-

ful in the market

Profit margin

the extra which is added to the cost of a product to

cover the profit to be made

Production

the making of useful goods and services which are

scarce and have a price

Production technique

a particular method of combining inputs to make out-

puts

Regional policy

a policy concerned with removing significant imba l-

ances between the regions of an economy in respect of

unemployment rates and levels of income per head

Regional

a form of structural unemployment associated with the

unemployment

decline of certain industrial activities

Revenue

the money received by a firm from selling its output of

goods or services, or money received by government

from taxation

Resource allocation

a list or complete description of who does what and

who gets what

Scale of preferences

an arrangement of things in one’s own mind with the

most preferred items towards the top of the scale

Secondary data

information which already exists, such as accounts and

sales records, government statistics, newspaper articles

or reports from advertising agencies

Shareholders

the individuals and institutions who contribute funds to

finance a joint-stock company in return for shares in

that company

Substitute products

any goods or services that are considered to be eco-

nomically interchangable by buyers

Supply

the total quantity of a good or a service available to the

general public

Suppressed inflation

inflation that would be much greater if the government

203

were to remove controls on prices and wages

Takeover

the acquisition of control of one company by another

or occasionally by an individual or group of investors

Total utility

total satisfaction derived from the possession of a

commodity

Trade

the business of buying and selling goods for money or

of exchanging goods for goods

Transaction

a business deal, especially a sale or a purchase, by

business

Treasury

the department responsible for the finances, the man-

agement of the monetary system, etc.

Unemployment rate

the percentage of the labour force without a job but

registered as being willing and available for work

Utility

the ability to satisfy wants

Vertical merger

a merger between firms operating at different stages of

production, e.g. from raw materials to finished prod-

ucts to distribution

Wage

the money paid, usually in cash each week, to a worker

for work done

Wants

the basic needs of people

Wealth

a stock of goods that are useful, scarce and can be e x-

changed for a money price