This is the simplest yardstick of economic performance. 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. Being the best a
When CAPITAL flows rapidly out of a country, usually because something happens which
causes investors suddenly to lose confidence in its economy. (Strictly speaking, the problem
is not so much the MONEY leaving, but rather that investors
An annual procedure to decide how much public spending there should be in the year
ahead and what mix of taxation, charging for services and borrowing should finance it. The
budgeting process differs enormously from one country to another. In th
Eating people is wrong. Eating your own business may not be. FIRMS used to be reluctant
to launch new products and SERVICES that competed with what they were already doing,
as the new thing would eat into (cannibalise) their existing busine
If you pay your cleaner or builder in cash, or for some reason neglect to tell the taxman that
you were paid for a service rendered, you participate in the black or underground economy.
Such transactions do not normally show up in the fig
Barriers to entry (or exit)
How firms keep out competition-an important source of incumbent advantage. There are
four main sorts of barriers.
*A firm may own a crucial resource, such as an oil well, or it may have an exclusive
operating licence, for in
Going, going, gone. Holding an auction can be an extremely efficient way for a seller to set
the price of its products, especially if it does not have much information about how much
people may be willing to pay for them. Auctions fascinate ec
Farming around the world continues to become more productive while generally accounting
for a smaller share of employment and national income, although in some poor countries it
remains the sector on which the country and its people depend.
When a commodity is valued more highly in a spot market (that is, when it is for delivery
today) than in a futures market (for delivery at some point in the future).
Normally, interestcosts mean that futures prices are higher than spot pr
A rise in the value of an asset and the opposite of depreciation. When the value of a
currency rises relative to another, it appreciates.
Buying an asset in one market and simultaneously selling an identical asset in another
1. Bill of rights The first ten amendments to the U.S. Constitution.
2. Binding authority Any source of law that a court must follow when deciding a case.
Binding authorities include constitutions, statutes, and regulations that govern the issue