Common Terms
Key terms, in essence, are words or phrases that are central to a specific topic or subject area. They act as the "means of exchange" within a discipline, helping individuals understand and engage with the subject matter. These terms are often found in academic writing, research papers, and specialized fields, where precision and clarity are crucial.
ECONOMICS
MANAGEMENT
ECONOMICS
- Aggregate Demand – Total demand for goods and services in an economy.
- Aggregate Supply – Total supply of goods and services available in an economy
- Balance of Payments (BoP) – Record of all economic transactions between residents of a country & the rest of the world.
- Budget Deficit – When government expenditures exceed revenue.
- Capital Formation – Increase in physical capital in an economy
- Consumer Surplus – Difference between what a consumer is willing to pay and what they actually pay.
- Crowding Out – Reduction in private investment due to increased government borrowing.
- Deflation – Persistent fall in the general price level.
- Depreciation – Decrease in value of a currency in a floating exchange rate system.
- Dumping – Selling goods in a foreign market at a lower price than the domestic market.
- Elasticity of Demand – Measure of how demand changes with price or income changes.
- Externalities – Costs or benefits that affect third parties.
- Fiscal Deficit – Total borrowing requirement of the government
- Foreign Direct Investment (FDI) – Investment from one country into business interests in another.
- GDP (Gross Domestic Product) – Total market value of all final goods and services produced in a country in a given
period. - GNP (Gross National Product) – GDP plus net income from abroad.
- Human Capital – The skills and knowledge of the workforce.
- Inflation – Rise in the general price level of goods and services.
- Interest Rate – Cost of borrowing money or return on savings.
- Investment Multiplier – Ratio of change in income to the change in investment.
- IS-LM Model – Shows equilibrium in the goods and money markets.
- Laffer Curve – Shows the relationship between tax rates and tax revenue.
- Lorenz Curve – Graphical representation of income or wealth distribution.
- Marginal Cost – Cost of producing one more unit of a good.
- Marginal Utility – Additional satisfaction from consuming one more unit of a good.
- Microeconomics – Study of individual units in an economy.
- Macroeconomics – Study of the economy as a whole.
- Monetary Policy – Central bank actions to control money supply and interest rates.
- Monopoly – Market with only one seller.
- Oligopoly – Market dominated by a few large firms.
- Opportunity Cost – The next best alternative foregone.
- Phillips Curve – Shows the trade-off between inflation and unemployment.
- Price Ceiling – Maximum legal price that can be charged.
- Price Floor – Minimum legal price that can be paid.
- Public Goods – Non-excludable and non-rivalrous goods.
- Quantitative Easing – Central bank policy to increase money supply.
- Recession – Decline in economic activity for two consecutive quarters
- Sovereign Debt – Government debt issued in domestic or foreign currency.
- Stagflation – High inflation and high unemployment simultaneously.
- Subsidy – Financial support from the government to reduce costs.
- Supply Shock – Sudden disruption in supply, affecting prices and output.
- Tax Incidence – Distribution of tax burden between buyers and sellers.
- Terms of Trade – Ratio of export prices to import prices.
- Trade Deficit – When imports exceed exports.
- Unemployment Rate – Percentage of the labour force that is unemployed.
- Utility – Satisfaction derived from consuming goods or services.
- Value Added – Difference between the value of output and intermediate consumption.
- WTO (World Trade Organisation) – International body regulating global trade.
- Zero-Based Budgeting – Every expense must be justified for each new period.
- Monetary Neutrality – Idea that changes in money supply only affect nominal variables.
MANAGEMENT
- Accountability – Responsibility for outcomes or performance.
- Appraisal – Evaluation of employee performance.
- Benchmarking – Comparing business processes to industry best practices.
- Brainstorming – Technique to generate creative ideas.
- Brand Equity – Value of a brand in the market.
- Business Model – Framework for how a company creates and delivers value.
- Capital Budgeting – Process of evaluating investment projects.
- Change Management – Structured approach to transition from current to desired state.
- Conflict Resolution – Methods to resolve workplace disagreements.
- Contingency Planning – Preparing for unexpected situations.
- Corporate Governance – Rules and practices to control and direct a company.
- Corporate Social Responsibility (CSR) – Business commitment to social & environmental responsibilities.
- Critical Path Method (CPM) – Project management tool for scheduling tasks.
- Customer Relationship Management (CRM) – Strategies to manage customer interactions.
- Decision-Making – Choosing among alternatives.
- Delegation – Assigning responsibility to subordinates.
- Diversity Management – Managing workforce diversity for inclusivity.
- Downsizing – Reducing workforce to cut costs.
- Entrepreneurship – Process of starting and running a business.
- ERP (Enterprise Resource Planning) – Integrated software for business processes.
- Forecasting – Predicting future trends or outcomes.
- Functional Structure – Organizational layout based on functions.
- Goal Setting – Defining targets for teams or individuals.
- Incentive Systems – Rewards for motivating employee performance.
- Innovation – Process of creating new products, services, or processes.
- Job Enrichment – Increasing job responsibilities to enhance satisfaction.
- Just-in-Time (JIT) – Inventory system to reduce waste.
- Kaizen – Japanese philosophy of continuous improvement.
- Key Performance Indicators (KPIs) – Metrics to evaluate success.
- Knowledge Management – Handling and sharing of knowledge in an organization.
- Leadership – Influencing and guiding others.
- Lean Management – Minimizing waste while maximizing value.
- Managerial Grid – Leadership style framework.
- Marketing Mix (4Ps) – Product, Price, Place, Promotion.
- Mission Statement – Organization’s purpose and values.
- Motivation Theories – Theories explaining employee drive (e.g., Maslow, Herzberg).
- Negotiation – Process of reaching mutual agreement.
- Networking – Building professional relationships.
- Operations Management – Managing production and delivery of goods/services.
- Organizational Culture – Shared values and behaviors in a company.
- Outsourcing – Contracting tasks to external parties.
- Performance Management – Monitoring and improving employee output.
- Planning – Setting objectives and determining actions.
- Portfolio Management – Managing a collection of projects or investments.
- Productivity – Output per unit of input.
- Quality Assurance – Ensuring consistent quality in output.
- Recruitment – Hiring new talent.
- Stakeholder – Any party affected by company activities.
- Strategic Management – Long-term planning and execution.
- Vision Statement – Future goals and aspirations of an organization.