1. Economic Vocabulary All the terms you need to know and are afraid to hear

2. Page One  Absolute advantage Absolute advantage  Absolute poverty Absolute poverty  Ad Valorem taxes Ad Valorem taxes  Aggregate Demand Aggregate Demand  Aggregate demand and Aggregate supply Model Aggregate demand and Aggregate supply Model  Aggregate Supply Aggregate Supply  Allocative efficiency Allocative efficiency  Appreciation Appreciation  Asymmetric Information Asymmetric Information  Average fixed cost Average fixed cost  Average total cost Average total cost  Absolute advantage Absolute advantage  Absolute poverty Absolute poverty  Ad Valorem taxes Ad Valorem taxes  Aggregate Demand Aggregate Demand  Aggregate demand and Aggregate supply Model Aggregate demand and Aggregate supply Model  Aggregate Supply Aggregate Supply  Allocative efficiency Allocative efficiency  Appreciation Appreciation  Asymmetric Information Asymmetric Information  Average fixed cost Average fixed cost  Average total cost Average total cost  Average variable cost Average variable cost  Balance of Payments Balance of Payments  Barriers to entry Barriers to entry  Black market Black market  Bond Bond  Break-even price Break-even price  Budget deficit Budget deficit  Buffer stock systems Buffer stock systems  Business Cycle Business Cycle  Capital Capital  Capital Flight Capital Flight

3. Two  Cartel Cartel  Ceteris paribus Ceteris paribus  Choice Choice  Circular flow Circular flow  Classical economic theory Classical economic theory  Collusion Collusion  Command Economy Command Economy  Commodity Commodity  Commodity agreements Commodity agreements  Common access resources Common access resources  Common market Common market  Comparative advantage Comparative advantage  Cartel Cartel  Ceteris paribus Ceteris paribus  Choice Choice  Circular flow Circular flow  Classical economic theory Classical economic theory  Collusion Collusion  Command Economy Command Economy  Commodity Commodity  Commodity agreements Commodity agreements  Common access resources Common access resources  Common market Common market  Comparative advantage Comparative advantage  Complements Complements  Consumer Price Index (CPI) Consumer Price Index (CPI)  Consumer Surplus Consumer Surplus  Consumption Consumption  Contestable markets Contestable markets  Contractionary fiscal policy Contractionary fiscal policy  Contractionary monetary policy Contractionary monetary policy  Corrective subsidy Corrective subsidy  Corrective tax (Pigouvian tax) Corrective tax (Pigouvian tax)  Cost-push inflation Cost-push inflation  Cross-price Elasticity of demand (XED) Cross-price Elasticity of demand (XED)  Crowding-out effect Crowding-out effect

4. Three  Current account Current account  Current account deficit Current account deficit  Current account surplus Current account surplus  Customs union Customs union  Cyclical unemployment Cyclical unemployment  Deadweight loss Deadweight loss  Debt cancellation Debt cancellation  Decreasing Returns to Scale Decreasing Returns to Scale  Deflation Deflation  Deflationary gap Deflationary gap  Demand Demand  Demand deposit (Checkable deposit) Demand deposit (Checkable deposit)  Current account Current account  Current account deficit Current account deficit  Current account surplus Current account surplus  Customs union Customs union  Cyclical unemployment Cyclical unemployment  Deadweight loss Deadweight loss  Debt cancellation Debt cancellation  Decreasing Returns to Scale Decreasing Returns to Scale  Deflation Deflation  Deflationary gap Deflationary gap  Demand Demand  Demand deposit (Checkable deposit) Demand deposit (Checkable deposit)  Demand side policies Demand side policies  Demand-pull inflation Demand-pull inflation  Depreciation Depreciation  Depreciation (microeconomics) Depreciation (microeconomics)  Derived Demand Derived Demand  Deterioration in terms of trade Deterioration in terms of trade  Devaluation Devaluation  Diamond and Water Paradox Diamond and Water Paradox  Differentiation Differentiation  Diminishing marginal returns Diminishing marginal returns  Diminishing marginal utility Diminishing marginal utility  Direct taxation Direct taxation

5. Four  Discount rate Discount rate  Diseconomies of scale Diseconomies of scale  Disequilibrium Disequilibrium  Diversification Diversification  Dumping Dumping  Economic Development Economic Development  Economic good Economic good  Economic growth Economic growth  Economic profit Economic profit  Economic resources Economic resources  Economies of Scale Economies of Scale  Elastic Demand Elastic Demand  Discount rate Discount rate  Diseconomies of scale Diseconomies of scale  Disequilibrium Disequilibrium  Diversification Diversification  Dumping Dumping  Economic Development Economic Development  Economic good Economic good  Economic growth Economic growth  Economic profit Economic profit  Economic resources Economic resources  Economies of Scale Economies of Scale  Elastic Demand Elastic Demand  Entrepreneurship Entrepreneurship  Equilibrium Equilibrium  Equity Equity  Excess reserves Excess reserves  Exchange rate Exchange rate  Expectations Expectations  Expenditure-reducing policies Expenditure-reducing policies  Expenditure-switching policies Expenditure-switching policies  Expenditures approach to GDP Expenditures approach to GDP  Export-led Growth Export-led Growth  Exports Exports  Externalities Externalities

6. Five  Factors of Production Factors of Production  Fair Trade Fair Trade  Federal Funds Rate Federal Funds Rate  Financial account Financial account  Fiscal policy Fiscal policy  Fixed Costs Fixed Costs  Flat rate taxes Flat rate taxes  Floating exchange rate Floating exchange rate  Foreign Direct Investment (FDI) Foreign Direct Investment (FDI)  Foreign exchange market Foreign exchange market  Fractional reserve banking Fractional reserve banking  Free good Free good  Factors of Production Factors of Production  Fair Trade Fair Trade  Federal Funds Rate Federal Funds Rate  Financial account Financial account  Fiscal policy Fiscal policy  Fixed Costs Fixed Costs  Flat rate taxes Flat rate taxes  Floating exchange rate Floating exchange rate  Foreign Direct Investment (FDI) Foreign Direct Investment (FDI)  Foreign exchange market Foreign exchange market  Fractional reserve banking Fractional reserve banking  Free good Free good  Free market economy Free market economy  Free Trade Free Trade  Free Trade Agreement Free Trade Agreement  Free trade area Free trade area  Frictional unemployment Frictional unemployment  Full employment Full employment  GDP (expenditure approach) GDP (expenditure approach)  GDP (income approach) GDP (income approach)  GDP (per capita) GDP (per capita)  GDP Deflator GDP Deflator  GDP growth rate GDP growth rate  Giffen Goods Giffen Goods

7. Six  Gini Coefficient Gini Coefficient  Globalization Globalization  Goods Goods  Government spending Government spending  Gross Domestic Product (GDP) Gross Domestic Product (GDP)  Homogenous Homogenous  Human capital Human capital  Human Development Index (HDI) Human Development Index (HDI)  Hyperinflation Hyperinflation  Import substitution Import substitution  Imports Imports  Improvement in terms of trade Improvement in terms of trade  Gini Coefficient Gini Coefficient  Globalization Globalization  Goods Goods  Government spending Government spending  Gross Domestic Product (GDP) Gross Domestic Product (GDP)  Homogenous Homogenous  Human capital Human capital  Human Development Index (HDI) Human Development Index (HDI)  Hyperinflation Hyperinflation  Import substitution Import substitution  Imports Imports  Improvement in terms of trade Improvement in terms of trade  Incentive Incentive  Income Income  Income effect Income effect  Income Elasticity of Demand (YED) Income Elasticity of Demand (YED)  Increasing Returns to Scale Increasing Returns to Scale  Indebtedness Indebtedness  Indirect Taxation Indirect Taxation  Inelastic Demand Inelastic Demand  Infant Industry Infant Industry  Inferior Goods Inferior Goods  Inflation Inflation  Inflation rate Inflation rate

8. Seven  Inflationary gap Inflationary gap  Inflationary spiral Inflationary spiral  Infrastructure Infrastructure  Interdependence Interdependence  Interest Interest  Interest rate Interest rate  Investment Investment  J-Curve J-Curve  Keynesian Economic Theory Keynesian Economic Theory  Labor Labor  Land Land  Law of Demand Law of Demand  Inflationary gap Inflationary gap  Inflationary spiral Inflationary spiral  Infrastructure Infrastructure  Interdependence Interdependence  Interest Interest  Interest rate Interest rate  Investment Investment  J-Curve J-Curve  Keynesian Economic Theory Keynesian Economic Theory  Labor Labor  Land Land  Law of Demand Law of Demand  Law of increasing opportunity cost Law of increasing opportunity cost  Law of Supply Law of Supply  Less Economically Developed Country (LEDC) Less Economically Developed Country (LEDC)  Loanable funds market Loanable funds market  Long-run (macroeconomics) Long-run (macroeconomics)  Long-run (macroeconomics) Long-run (macroeconomics)  Long-run (microeconomics) Long-run (microeconomics)  Long-run aggregate supply Long-run aggregate supply  Long-run Economic growth Long-run Economic growth  Lorenz Curve Lorenz Curve  Lump sum tax Lump sum tax  M1, M2, M3 M1M2M3

9. Eight  Macroeconomic equilibrium Macroeconomic equilibrium  Macroeconomics Macroeconomics  Managed exchange rate Managed exchange rate  Marginal Marginal  Marginal analysis Marginal analysis  Marginal Cost Marginal Cost  Marginal Private Benefit (MPB) Marginal Private Benefit (MPB)  Marginal Private Cost (MPC) Marginal Private Cost (MPC)  Marginal Product Marginal Product  Marginal propensity to consume (MPC) Marginal propensity to consume (MPC)  Marginal propensity to save (MPS) Marginal propensity to save (MPS)  Marginal Revenue Marginal Revenue  Macroeconomic equilibrium Macroeconomic equilibrium  Macroeconomics Macroeconomics  Managed exchange rate Managed exchange rate  Marginal Marginal  Marginal analysis Marginal analysis  Marginal Cost Marginal Cost  Marginal Private Benefit (MPB) Marginal Private Benefit (MPB)  Marginal Private Cost (MPC) Marginal Private Cost (MPC)  Marginal Product Marginal Product  Marginal propensity to consume (MPC) Marginal propensity to consume (MPC)  Marginal propensity to save (MPS) Marginal propensity to save (MPS)  Marginal Revenue Marginal Revenue  Marginal Social Benefit (MSB) Marginal Social Benefit (MSB)  Marginal Social Cost (MSC) Marginal Social Cost (MSC)  Market Market  Market Failure Market Failure  Market system Market system  Marshall-Lerner Condition Marshall-Lerner Condition  Merit goods Merit goods  Micro-credit Micro-credit  Microeconomics Microeconomics  Mixed economy Mixed economy  Monetarism Monetarism  Monetary policy Monetary policy

10. Nine  Money Money  Money demand Money demand  Money market Money market  Money Multiplier Money Multiplier  Money supply Money supply  Monopolistic Competition Monopolistic Competition  Monopoly Monopoly  More Economically Developed Country (MEDC) More Economically Developed Country (MEDC)  Multi-national Corporations Multi-national Corporations  Multilateral aid Multilateral aid  Multiplier effect Multiplier effect  National economy National economy  Money Money  Money demand Money demand  Money market Money market  Money Multiplier Money Multiplier  Money supply Money supply  Monopolistic Competition Monopolistic Competition  Monopoly Monopoly  More Economically Developed Country (MEDC) More Economically Developed Country (MEDC)  Multi-national Corporations Multi-national Corporations  Multilateral aid Multilateral aid  Multiplier effect Multiplier effect  National economy National economy  National income National income  National output National output  Natural Monopoly Natural Monopoly  Natural rate of unemployment Natural rate of unemployment  Net Export effect Net Export effect  Net exports Net exports  NGO (non-governmental organization) NGO (non-governmental organization)  Nominal GDP Nominal GDP  Nominal interest rate Nominal interest rate  Non-convertible currencies Non-convertible currencies  Normal Good Normal Good  Normal Profit Normal Profit

11. Ten  Normative statement Normative statement  Official reserves Official reserves  Oligopoly Oligopoly  Open market operations Open market operations  Opportunity cost Opportunity cost  Per unit tax Per unit tax  Perfect Competition Perfect Competition  Perfectly elastic Demand Perfectly elastic Demand  Perfectly inelastic Demand Perfectly inelastic Demand  Phillips Curve Phillips Curve  Positive statement Positive statement  Potential output Potential output  Normative statement Normative statement  Official reserves Official reserves  Oligopoly Oligopoly  Open market operations Open market operations  Opportunity cost Opportunity cost  Per unit tax Per unit tax  Perfect Competition Perfect Competition  Perfectly elastic Demand Perfectly elastic Demand  Perfectly inelastic Demand Perfectly inelastic Demand  Phillips Curve Phillips Curve  Positive statement Positive statement  Potential output Potential output  Poverty Cycle (Poverty trap) Poverty Cycle (Poverty trap)  Preferential trade agreement Preferential trade agreement  Price Price  Price ceiling Price ceiling  Price discrimination Price discrimination  Price Elasticity of Demand (PED) Price Elasticity of Demand (PED)  Price Elasticity of Supply (PES) Price Elasticity of Supply (PES)  Price floor Price floor  Price level Price level  Price mechanism Price mechanism  Private sector Private sector  Producer surplus Producer surplus

12. Eleven  Product market Product market  Production possibilities curve Production possibilities curve  Productive efficiency Productive efficiency  Productivity Productivity  Profit Profit  Profit maximization Profit maximization  Progressive tax Progressive tax  Proportional tax Proportional tax  Protectionism Protectionism  Public good Public good  Public sector Public sector  Quantity Quantity  Product market Product market  Production possibilities curve Production possibilities curve  Productive efficiency Productive efficiency  Productivity Productivity  Profit Profit  Profit maximization Profit maximization  Progressive tax Progressive tax  Proportional tax Proportional tax  Protectionism Protectionism  Public good Public good  Public sector Public sector  Quantity Quantity  Quantity theory of money Quantity theory of money  Quota Quota  Rational expectations theory Rational expectations theory  Rationing Rationing  Real GDP Real GDP  Real interest rate Real interest rate  Recession Recession  Recessionary gap Recessionary gap  Regressive tax Regressive tax  Relative poverty Relative poverty  Rent Rent  Required reserves Required reserves

13. Twelve  Resource market Resource market  Revaluation Revaluation  Scarcity Scarcity  Seasonal unemployment Seasonal unemployment  Self-correction Self-correction  Services Services  Shift Shift  Short run aggregate supply Short run aggregate supply  Short-run Short-run  Short-run Economic growth Short-run Economic growth  Shortage Shortage  Shut-down price Shut-down price  Shut-down rule Shut-down rule  Resource market Resource market  Revaluation Revaluation  Scarcity Scarcity  Seasonal unemployment Seasonal unemployment  Self-correction Self-correction  Services Services  Shift Shift  Short run aggregate supply Short run aggregate supply  Short-run Short-run  Short-run Economic growth Short-run Economic growth  Shortage Shortage  Shut-down price Shut-down price  Shut-down rule Shut-down rule  Social science Social science  Socially optimal output Socially optimal output  Soft loan Soft loan  Specialization Specialization  Speculation Speculation  Spending multiplier Spending multiplier  Stagflation Stagflation  Sticky-wages Sticky-wages  Structural unemployment Structural unemployment  Subsidy Subsidy  Substitute Substitute  Substitution effect Substitution effect

14. Thirteen  Supply Supply  Supply shock Supply shock  Surplus Surplus  Sustainability Sustainability  Sustainable development Sustainable development  Tariff Tariff  Tax Tax  Tax incidence Tax incidence  Tax multiplier Tax multiplier  Terms of Trade Terms of Trade  The Basic Economic Questions The Basic Economic Questions  The International Monetary Fund (IMF) The International Monetary Fund (IMF)  Supply Supply  Supply shock Supply shock  Surplus Surplus  Sustainability Sustainability  Sustainable development Sustainable development  Tariff Tariff  Tax Tax  Tax incidence Tax incidence  Tax multiplier Tax multiplier  Terms of Trade Terms of Trade  The Basic Economic Questions The Basic Economic Questions  The International Monetary Fund (IMF) The International Monetary Fund (IMF)  Tied aid Tied aid  Total cost Total cost  Total Product Total Product  Total Revenue Total Revenue  Total Revenue Test of PED Total Revenue Test of PED  Trade creation Trade creation  Trade deficit Trade deficit  Trade diversion Trade diversion  Trade surplus Trade surplus  Tradeable permits Tradeable permits  Tragedy of the commons Tragedy of the commons  Transfer payments Transfer payments

15. Fourteen  Under-employment Under-employment  Unemployment Unemployment  Unemployment rate Unemployment rate  Unit elastic Demand Unit elastic Demand  Utility Utility  Utility Maximization Rule Utility Maximization Rule  Variable Cost Variable Cost  Veblen good Veblen good  Velocity of money Velocity of money  Voluntary Export Restraints Voluntary Export Restraints  Wage Wage  Wealth Wealth  Under-employment Under-employment  Unemployment Unemployment  Unemployment rate Unemployment rate  Unit elastic Demand Unit elastic Demand  Utility Utility  Utility Maximization Rule Utility Maximization Rule  Variable Cost Variable Cost  Veblen good Veblen good  Velocity of money Velocity of money  Voluntary Export Restraints Voluntary Export Restraints  Wage Wage  Wealth Wealth  World Bank World Bank  World Trade Organization (WTO) World Trade Organization (WTO)