The EzyEducation website uses cookies to help ensure we give you the best experience.
If you continue without changing your settings, we assume that you are happy to receive all cookies on the EzyEducation website.
Please refer to our Privacy and Cookies Statement to

find out more.

Continue

Economic Terms

0-9   A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Scarce resources

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

Seasonal unemployment

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.


Second Degree Price Discrimination

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.

 


Secondary Market

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

 


Secondary product

Goods that are manufactured from primary products.

Secured

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

Secured Loan

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.


Service

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


Services

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


Shadow Banking Sector

Financial intermediaries involved in the creation of credit, but are not subject to regulatory oversight e.g hedge funds. This sector is exponentially growing and in 2013 grew by $5 trillion to $75 trillion, making up on average 25% of all financial assets, roughly half of the banking system assets, and 120% of GDP. This is a worrying trend as lower capital regulation imposed on these types of FIs raises fears of more bank failures and systemic crises.


Display # 
Forgot your password?