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A

Agricultural Credit is a type of credit used for the


specific purpose of meeting the needs of agriculture as
buying fertilizers, tractors, seedlings, pesticides, and
other farm inputs.

Allocation refers to the mechanism that deals with
the distribution of natural resources, human resources,
and physical resources to diverse uses in order to
answer the problem of scarcity.
Average Revenue- total revenue divided by output or
quantity produced

B

Bank is an institution for lending, borrowing, or
managing money.
Barter is the exchange of goods for other goods.
Biology is the science that studies living things like
humans, animals, and plants.
Brain Drain happens when professionals go to other
countries to work or even to settle permanently.
Budget Deficit is the amount by which spending
exceeds revenues in a given period.

C

Capacity is the ability to pay regardless of the
willingness of the borrower to discharge his credit.
Capital goods are the manufactured goods used to
produce other goods to enhance the production and
develop the economy.
Capitals are produced goods used to produce other
goods.
Cartel a group of businessmen who manipulate and
control the distribution, consumption, and pricing of a
certain product.
Central Bank is the banks of banks. It is a central
institution designed to bring about unified control of
the financial system of the country.
Character is the sum total personality traits which
would distinguish an individual from another.
Check is a draft or order upon a bank for payment if
certain sum of money to a specific person named
therein on his order or bearer payable on the date
indicated.
Chemistry is the science that studies the
composition of chemicals for the creation of variety of
goods, which are needed in the economy.
Collateral anything of value like property, jewel,
appliances, and others that you promise to give if you
cannot pay back the money that is borrowed.
Collusion- an agreement between two or more
parties, sometimes illegal and therefore secretive, to
limit open competition by deceiving, misleading, or
defrauding others of their legal rights, or to obtain an
objective forbidden by law
Commercial Banks are those that accept all kinds
of deposits including savings deposit, time deposits
and give out loans for business housing and
automobile.
Common Reaction- same opinion between two or
more parties
Complementary goods- good with a negative cross
elasticity of demand, in contrast to a substitute good

Consumer refers to a person who purchase and
uses the consumer products and services to satisfy his
needs.
Credit may be defined as a means by which
something of value is obtained with a promise to pay
for it at a specified time in the future.
Creditors Individuals who give loans experience
losses if there is inflation.
D
Deflation- prolonged decline in the general price level
of the commodities.
Demand- number of goods and services that
consumers are willing and able to buy at alternative
prices at a given period of time.
Demand Curve- graphical representation of the
inverse relationship of price and quantity demanded
which the consumer is willing to buy
Demand Function- mathematical expression of the
relationship of two variables
Demand Pull kind of inflation that is caused by
increase in demand of items which occurs over a period
of time.
Demand Schedule- table showing the units of the
product which the consumer is willing and able to buy
at different prices

Demography is the science that deals with age,
size, distribution, and number of births and deaths of
human population.

Depreciation decline in value of items which occurs
over a period of time.
Deregulation releasing certain industries from
government control and regulations.
Devaluation refers to the decrease in the value of
peso compared to a foreign currency like the US
Dollars.
Direct Tax is considered as a hard form of tax for it
is imposed to persons who are expected to pay the
tax.
Drawee is another party who is directed to pay the
sum specified in a check, draft, or bill of exchange.

E
Economics the science that deals with the allocation
of limited resources to satisfy the needs of the
individual.
Economist a person who study Economics.
Elastic Demand- the response of quantity demanded
in every percent change in price in which the value is
more than one
Elasticity- degree of responsiveness of the changes in
the demand for a product relative to changes in price
Equilibrium- market condition where quantity
supplied equals to quantity demanded
Equilibrium Price- price level that both buyers and
sellers agree to have a transaction in the market
Equilibrium Quantity- refers to the quantity of
products that buyers and sellers have agreed to
transact at a specified price

Exercise Tax is imposed on all products produced
and sold in the country.
Exports goods sold to other countries.

F

Fertility the capability of a woman to bear a child.
Financial Sector its main functions are to
implement the momentary policies and to give
necessary support to the different financial institutions
of the country.
Fiscal Policy is the government taxation and spending
policy.

Fiscal Year is a 12-month financial period that does
not duplicate the dates of the calendar year.
Fixed Capital can be used repeatedly for a long
period of time.
Floor Price- lowest price in buying the products of the
farmers

Foreign Exchange Market it deals with buying and
selling of foreign currency
Fossil remains of plant and animals.
Franchise the right to use the franchisers name and
sell its products.

G

Goods materials that can be bought to satisfy human
wants and needs.
Gross Domestic Products the total of all final goods
and services produced within a country in a given year.
Gross National Product the total market value of all
final goods and services produce with factors of
production owned by citizens of a given country.

H
History is the recorded struggle of man from the
past to present.
Hoarding refers to keeping the supply of goods by
the businessmen to wait for the price increase.
Hydroelectric energy energy that comes from our
water resources.

I
Imports goods bought from other countries
Income Tax is levied on all citizens and companies
that have an income.
Indirect Tax is imposed on the value of the
products and services, which are shouldered by the
end users.
Inelastic Demand- response of quantity demanded in
every percent change in price in which the value is less
than one
Inferior Goods- goods for which the demand does not
increase even when income increases
Inflation increase in the price level of the
commodities
Injunction court order preventing any activity.
Inventory is the normal quantity of goods stored by
the business firms for future use.
Investment is the injection into the circular flow of
an amount equal to the household savings.

K
Kinked Demand Curve- economic theory regarding
oligopoly and monopolistic competition


L

Labor Union organizations of workers to improve
the working conditions and wages of its members.
Law of Demand- explains how the people react every
time prices change in terms of the quantities of the
product that they purchase
Law of Supply- states that when the price of the
product is high, producers are willing to sell more but if
the price is low, producers tend to decrease the supply
assuming all other things remain constant


M
Macroeconomics the study of the behavior of the
entire economy.
Marginal Cost additional cost in producing one more
product

Marginal Product additional output per additional
input

Marginal Revenue- additional revenue per unit which
the producer sold
Market a place where buyers and sellers meet

Market Demand- the combination of all the demands
of the consumers in the market
Market Supply- sum total of products that all
producers or sellers sell in the market
Mathematics is the science that studies numbers
and their operation.
Microeconomics the study in discussing the small
unit of the economy.
Mineral is a substance naturally present in the
earth, which can be extracted from the surface of the
soil.
Monetary Unit basic currency of the country
Money is anything used as a medium of exchange,
which is accepted by everybody.
Monopolistic Competition- combination of monopoly
and perfect competition
Monopoly- market structure with only one seller and
producer who controls the biggest portion of supply in
the market
Monopsony- market structure where there is only one
buyer in the market

N
Needs are the things which are necessary to
survive.
Normal goods- goods for which the demand increases
as income increases

O
Oligopoly- market structure where the number of
producers is few
Optimum Level- ideal or best level of production
wherein a businessman can gain profit and acquire a
minimum loss in the business

P
Pawnshop is one of the business ventures that
serve as middleman to all individuals who need
financial help.
Payee is a person or a firm to whom a promissory
note or check is payable.
Perfect Competition- market state wherein
businessmen have the absolute power to compete
among themselves
Physiological needs are classified as primary needs
like food, clothing, and shelter in order to live.
Price Ceiling- refers to the highest price or maximum
price declared by the government for a particular
product
Price Control- implemented if a state of calamity is
declared

Privatization the selling of government corporations
to private sectors.
Productivity is the efficient use of resources to
produce goods and services.
Professional Tax is levied on Specific occupations
that are lawfully pursued like doctors, lawyer, and
accountants.
Progressive Tax imposes on higher percentage rate
of taxation on persons with high income than those
with low income.
Promissory Note is a credit instrument, which
guarantees the existence of debt contracted by the
borrower from the creditor.
Property Tax is imposed on persons with real
properties whether acquired, inherited, or donated
based on their market value.
Proportional Tax imposes the same percentage
rate of taxation on everyone regardless of his or her
income.
Public goods goods provided by the government.
Public Sector is composed of the national and local
agencies of the government that directly control the
economy.

Q

Quota limit on the quality of goods allowed to enter
the country


R

Real GNP GNP at constant prices
Recession phase of business cycle during which real
GNP declines

Regulatory Tax is imposed in buying and using
products to control their price.

Resources refers to things which are used to
produce goods and services that satisfy the needs of
man.
Rural Bank aims to help farmers to have a capital.

S

Savings are income not spent for consumption while
investment is spending on capital goods to produce
more goods and services.
Scarcity the condition where the resources are
limited to satisfy the unlimited needs and wants of
people.
Sociology is the science that studies the
composition of society, social relationships, and social
institution.
Stockholders individuals who have invested in a
corporation
Strike work stoppage of workers to force the
demands.
Subsidy- assistance provided by the government to
small entrepreneurs and farmers
Substitute Goods- goods that a person can buy in
place of other goods
Supply- refers to the quantity of goods and services
which the supplier is willing and able to trade at
alternative prices at a given time
Supply Curve- graphical representation of the direct
relationship of price and quantity of products which the
supplier is willing and able to sell
Supply Schedule- table showing the different units of
the product that can be sold at different prices
Surplus- excess supply of a product

T
Tariff tax on imports
Technology the use of scientific knowledge in
producing goods and services.
Theory is the abstract of realities that helps the
researchers to organize their thoughts and ideas.
Thrift Bank is also known as a saving bank. It
encourages people to save portion of their income in
banks.
Treasury Bills a bond as an evidence of government
debt
U
Underemployment is the situation when the
working hours of workers are less than eight hours.
Underground Economy economic activities or
business or an individual who does not pay taxes
Unemployed are those people who do not have a
job and still looking for a job.
Unitary Demand- response of consumer to price
change in which the value of quantity demanded and
the change in price is equal to one percent
Unitary Supply- if the increase in price is 1 %
increase in supply is also 1 %

V
Value Added Tax is place on the value of the
product at each stage of production.

W
Wants are things which people consume as a part of
their caprices or beyond their necessities.
White Collar Job category of workers employed in
offices and professional position.