Economics vocabulary
1.INSTITUTIONS:social arrangement created to satisfy the needs of
the people in the long run. ethics, justice and the State are three naturally
created institutions.
languaje,morals(result
of ethics(conscience) andcreate by imaginationis necessary to maintain some
form of order to have a impartial judge),
justice,property
rights(appear on third state of society in evolution/hunt/agriculture/farm/commercial
interdependence->let government pursue laissez faire->self interest maximize
well being
Historical economy vocabulary
NOMINAL PRICE: An estimated price that may or may not resemble an asset’s market price, and which is quoted to initiate a negotiation or transaction. Nominal price is used where either the recent market price has not been established (the item is new), or where demand and supply situation makes the market-price uncertain (the item is scarce).
REAL PRICE: Nominal price/cpi( this process is called indexation).
THE PURCHASING POWER PARITY THEORY(THE RATE OF EXCHANGE : a price at which one currency is
Read MoreMarketing vocabulary
Rate of adoption: relative advantage (superior to existing), compatibility (fit with target market), complexity, divisibility (be used on a limited basis?), communicability.
Brand equity:$ amount attributed to the value of the brand based on intangible qualities that create value. Strong brand equity leads to customer loyalty, better employees, increase visibility in stock market, greater cooperation, less vulnerable to marketing mistakes, brand opportunity such as brand extensions, brand licensing