Terms in Economics and Business

Terms in Economics and Business
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Absolute advantage A country has an absolute advantage over another in the production of a good if it can produce it with less resources than the other country.
Accelerationist theory The theory that unemployment can only be reduced below the natural rate at the cost of accelerating inflation.
Accelerator theory The level of investment depends on the rate of change of national income, and the result tends to be subject to substantial fluctuations.
Actual growth The percentage annual increase in national output actually produced.
Ad valorem tariffs Tariffs levied as a percentage of the price of the import.
Adjustable peg A system whereby exchange rates are fixed for a period of time, but may be devalued (or revalued) if a deficit (or surplus) becomes substantial.
Adverse selection Where information is imperfect, high risk groups will be attracted to profitable market opportunities to the disadvantage of the average buyer (or seller).
Advertising/sales ratio A ratio that reflects the intensity of advertising within a market.…