Page 108 - VIRANSH COACHING CLASSES

GLOSSARY OF ECONOMIC TERMS

• Advertising : Business of persuading people to • Composition of foreign trade : Composition of
buy products or services. trade means a study of the goods and services
• Antique goods : Something made in an earlier imported and exported by a country.
period that is collected and considered to have • Consumer equilibrium : It is a state of balance
value because it is beautiful, rare and old or of that can be achieved by a consumer from the
a high quality. purchase of goods and services, given their
• Arbitrary weights : Based on or determined present level of income and the current level of
by individual preference, rather than intrinsic prices.
nature of something. • Copyrights : Copyright is a form of protection
• Bank rate : The rate of interest set by a central provided by the laws of a country to the
bank in a country. This is the lowest rate creators of original works that includes literary,
at which central bank lends money against dramatic, musical, artistic and certain other
approved securities. creative works. A copyright holder can prevent
others from copying, performing or otherwise
• Branded products : A branded product is one using the work without his or her consent.
which is the made by a well-known manufacturer
and has the manufacturer's label on it. • Cost of living : It is the average amount of
money that people in a particular place need to
• Canons of taxation : Canons of taxation define afford basic food, housing and clothing.
numerous rules and principles upon which a
good taxation system should be built. • Credit rationing : RBI imposes a ceiling on
the loans and advances offered by commercial
• Capital gains : A capital gain is a rise in the banks to regulate and control the purpose of
value of a capital asset (investment or real credit.
estate) that gives it a higher worth than the • Cross elasticity : Cross elasticity of demand
purchase price.
is an economic concept that measures the
• Capital losses : A capital loss is essentially the responsiveness in the quantity demanded of one
difference between the purchase price and the good when the price for another good (substitute
price at which the asset is sold, where the sale or complementary product) changes.
price is lower than the purchase price.
• Deficit financing : It is a practice in which
• Cardinal measurement : The exponents of a government spends more money than it
cardinal utility analysis regard utility to be a receives as revenue. The difference is made up
cardinal concept and hypothetically hold that by borrowing or minting new funds.
utility is a measurable and quantifiable entity. • Deflating : Deflating in statistics means
• Cash reserve ratio (CRR) : As per RBI Act counteracting the effect of inflation over a set
of 1934, every commercial bank has to keep of data to unravel their true values and make
certain minimum cash reserves with RBI. It them comparable.
varies between 3- 15% of the total demand and • Dearness Allowances : It is a cost of living
time deposits. adjustment allowance paid to government
• Ceteris paribus : It is a Latin phrase and a employees, public sector employees and
dominant assumption in mainstream economic pensioners. It is calculated as a percentage of
thinking when translated into English refers to basic salary to mitigate the impact of inflation.
“other things being equal or constant.” • Direction of foreign trade : Direction of
• Composite measure : In Statistics, composite foreign trade means the countries to which a
measures of variables refers to measurements particular country exports its goods and the
based on multiple data items. countries from which it imports.
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