Economic Terms

A financial institution that offers savings facilities to retail customers such as Lloyds TSB. These can also be called Thrifts or Savings and Loans institutions (S&L's).

A resource which is fixed in supply and will eventually run out if it is used continuously.

When workers become unemployed due to a seasonal dip or reduction in production at a certain period of the year.

Below is a diagram to show the effects of this type of unemployment on the economy. The SRAS curve shifts inwards as temporarily workers become unavailable after periods of the year e.g. students have to return to education in September and therefore can only work full-time in the summer months. But this is only temporary and soon this effect gets reversed as workers make themselves available for the next seasonal time of the year e.g. Christmas time. So, in the long-run is there no change to the equilibrium as these effects roughly offset each other.

Is when a firm decides to charge a different price for different quantities, such as quantity discounts for bulk purchases. For example a retailer that purchases a large quantity of goods from a supplier will often receive a large discount for buying in bulk to encourage the retailer to purchase more.

 

A market where investors can purchase/sell securities or assets from/to other investors, rather than from issuing from companies themselves.

 

Goods that are manufactured from primary products.

When property deeds are assigned to the mortgagor until all interest payments and principal (amount loaned) have been repaid.

A loan in which the borrower pledges some asset (e.g. a car or property) against the value of the loan, which then becomes a secured debt owed to the creditor. This is done in mortgage loans and car loans to ensure that borrowers have the correct incentives to repay the loan in full with interest.

Is an intangible commodity e.g. banks offer lending services to borrowers.

Is an intangible commodity e.g. banks offer lending services to borrowers.