- Industry: Education
- Number of terms: 31274
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A method of defining relative factor abundance based on ratios of factor prices in autarky: Compared to country ''B'', country ''A'' is abundant in factor ''X'' relative to factor Y iff ''wXA/wYA < wXB/wYB'', where ''wIJ'' is the autarky price of factor ''I'' in country ''J'', ''I=X,Y, J=A,B''. This is also known as the "Ohlin definition," since it is the one used by Ohlin (1933).
Industry:Economy
A government-imposed lower limit on the price that may be charged for a product. If that limit is binding, it implies a situation of excess supply, which the government may need to purchase itself to keep price from falling.
Industry:Economy
A measure of the average prices of a group of goods relative to a base year. A typical price index for a vector of quantities ''q'' and prices ''pb'', ''pg'' in the base and given years respectively would be ''I'' = 100''pgq'' / ''pbq''.
Industry:Economy
A straight line representing the combinations of variables, usually two goods, that cost the same at some given prices. The slope of a price line measures relative prices, and changes in prices can therefore be represented by changing the slope of, or rotating, a price line. A steeper line means a higher relative price of the good measured on the horizontal axis.
Industry:Economy
A government-imposed upper limit on the price that may be charged for a product. If that limit is binding, it implies a situation of excess demand and shortage.
Industry:Economy
1. Intervention in a market in order to reduce fluctuations in price. This has sometimes been attempted by means of a buffer stock in markets for primary products. 2. The use of macroeconomic policies to reduce inflation.
Industry:Economy
A good that has not been processed and is therefore in its natural state, specifically products of agriculture, forestry, fishing, and mining.
Industry:Economy
1. The initial amount of a loan, thus not including interest. 2. The person or other entity on whose behalf an agent acts, in the Principal Agent Theory.
Industry:Economy
A government official responsible for purchasing goods and services and for deciding among alternative suppliers
Industry:Economy
