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Economics
EconomicsThe study of the economy. SIMILAR TERMS-------------------------------------- Econometric model An empirical method of economic forecasting that uses an equation based on statistical relationship among economic variables, such as housing starts and equipment purchases. Econometrics The quantitative science of modeling the economy. Econometric models help explain and predict variables of interest. Economic assumptions General market environment a firm expects to operate in over the life of a financial plan. Economic Daily News Economic Daily News is a Taiwanese newspaper. Economic dependence When the costs and-or revenues of one project depend on those of another. Economic earnings The real flow of cash that a firm could pay out forever in the absence of any change in the firm's productive capacity. Economic exposure The extent to which the value of a firm will change because of an exchange rate change. Economic growth An increase in the nation's capacity to produce goods and services. Usually refers to real GDP growth. Economic growth rate The annual percentage rate of change in the Gross National Product. Economic income Cash flow plus change in present value. Economic indicators The key statistics of the economy that reveal the direction the economy is heading in. Economic Investment Trust Economic Investment Trust is one of Canada's largest companies. Economic life The time period over which an asset's NPV is maximized. Economic life can be less than absolute physical life for reasons of technological obsolescence, physical deterioration, or product life cycle. Economic order quantity (EOQ) The order quantity that minimizes total inventory costs. Economic rents Profits in excess of the competitive level. Economic risk In project financing, the risk that the project's output will not be salable at a price that will cover the project's operating and maintenance costs and its debt service requirements. Economic shock Events that impact the economy which originate from outside it. They are unexpected and unpredictable. Economic surplus For any entity, the difference between the market value of all its assets and the market value of its liabilities. Economic union An agreement between two or more countries that allows the free movement of capital, labor, and all goods and services, and involves the harmonization and unification of social, fiscal, and monetary policies. Economic value added (EVA) A method of performance evaluation that adjusts accounting performance for investors' required return on investment. Economies of scale Achievement of lower average cost per unit through increased production. Economies of scope Scope economies exist whenever the same investment can support multiple profitable activities less expensively in combination than separately. Economies of vertical integration Produced by achieving lower operating costs by owning all components of production and sometimes sales outlets rather than contracting with companies in the outside marketplace. PREVIOUS AND NEXT TERMS-------------------------------------- Economic risk In project financing, the risk that the project's output will not be salable at a price that will cover the project's operating and maintenance costs and its debt service requirements. Economic shock Events that impact the economy which originate from outside it. They are unexpected and unpredictable. Economic surplus For any entity, the difference between the market value of all its assets and the market value of its liabilities. Economic union An agreement between two or more countries that allows the free movement of capital, labor, and all goods and services, and involves the harmonization and unification of social, fiscal, and monetary policies. Economic value added (EVA) A method of performance evaluation that adjusts accounting performance for investors' required return on investment. Economics Economies of scale Achievement of lower average cost per unit through increased production. Economies of scope Scope economies exist whenever the same investment can support multiple profitable activities less expensively in combination than separately. Economies of vertical integration Produced by achieving lower operating costs by owning all components of production and sometimes sales outlets rather than contracting with companies in the outside marketplace. ECU The European Commission of the European Union (EU). EDGAR (Electronic Data Gathering and Retrieval) The Securities & Exchange Commission uses Electronic Data Gathering and Retrieval to transmit company documents to investors. We thank you for using the Financial Dictionary to search for Economics. If you have a better definition for Economics than the one presented here, please let us know by making use of the suggest a term option. This definition of Economics may be disputed by other professionals. Our attempt is to provide easy definitions on Economics and any other medical topic for the public at large.
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