martes, 12 de febrero de 2013

ECONOMIC CONCEPTS


o   Laissez-faire Capitalism: is an economic system which allows every person to have their property. “Laissez- faire” literally means in french: to leave alone.
o   Free Market: free market may have control of the government but not necessary. Are exchanges that take place in a society.
o   Law of Supply and Demand: This is not a real law, but it is easy to understand. This “law” makes the proportions between cost and product demand
o   Law of Self-Interest: what we want others to have or achieve, will happen to you too.
o   Law of Competition: normalizes the competition between markets by not accepting just one company to make with the prices whatever they want.
o   The Invisible Hand: “natural force that guides free market capitalism through competition for scarce resources.” Literally words from Adam Smith.
o   Contract: The agreement between two or more parties. Totally involved with the law.
o   Free Trade: Is like a deal between two countries to exchange things without cost.
o   Balance of Trade: the difference of value of import and export in a country.
o   Zero-Sum Game: this is a representation of the gain and the loss. Meaning that the gain should be, obviously bigger than the loss.
o   Protectionism: when the government restricts international trades
o   Embargo: the prohibition of making commerce with a specifically country. 
o   Quota: A proportional part of an amount.
o   Tariff: A duty that the government asks for. The money should be for the need of the country.
o   Comparative Advantage: the ability of someone to service at a lower cost ver another.
o   Trading Partner: socio- commerce.
o   Niche Product: a product marketed in a small and special market.
o   Specialization: Method were a company concentrates in the services of one product
o   Life Expectancy: expected number of years of a person to live.
o   Birth Rate: Total new borns in a certain amount of population.
o   Replacement Rate: % of a worker´s income that is paid  when the retirement comes by a pension program.
o   Carrying Capacity: maximum number of species living in an environment.
o   Utilitarianism: can be caracterized as a quantitative approach to ethics.

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