TRADE-OFF:A trade-off (or tradeoff) is a situation that involves losing one quality or aspect of something in return for gaining

another quality or aspect. It implies a decision to be made with full comprehension of both the upside and downside of a particular choice. CETERIS PARIBUS:Ceteris paribus or caeteris paribus is a Latin phrase, literally translated as "with other things the same," or "all other things being equal or held constant." It is an example of an ablative absolute and is commonly rendered in English as "all other things being equal." A prediction, or a statement about causal or logical connections between two states of affairs, is qualified by ceteris paribus in order to acknowledge, and to rule out, the possibility of other factors that could override the relationship between the antecedent and the consequent INTEREST:Interest is a fee paid on borrowed assets. It is the price paid for the use of borrowed money, or, money earned by deposited funds. Assets that are sometimes lent with interest include money, shares, consumer goods through hire purchase, major assets such as aircraft, and even entire factories in finance lease arrangements. The interest is calculated upon the value of the assets in the same manner as upon money.

CAPITAL:In neoclassical economics, capital, capital goods, or real capital is the factor of production, used to create goods or services, that is not itself significantly consumed (though it may depreciate) in the production process. Capital goods may be acquired with money or financial capital. At any moment in time, total physical capital may be referred to as the capital stock, a usage different from the same term applied to a business entity. In a fundamental sense, capital consists of anything that can enhance a person's power to perform economically useful work - a stone or an arrow is capital for a caveman who can use it as a hunting instrument, and roads are capital for inhabitants of a city. As such, capital is an input in the production function. In classical political economy and Marxian economics, capital is money which is used to buy something only in order to sell it again, and thus capital only exists within the process of economic exchange - it is wealth that grows out of the process of circulation itself and forms the basis of the economic system of capitalism.

PANEL DATA:In statistics and econometrics, the term panel data refers to multi-dimensional data. Panel data contains observations on multiple phenomena observed over multiple time periods for the same firms or individuals. Time series and cross-sectional data are special cases of panel data that are in onedimension only. LEARNING BY DOING:Learning-by-doing is a concept within economic theory. It refers to the capability of workers to improve their productivity by regularly repeating the same type of action. The increased productivity is achieved through practice, self-perfection and minor innovations. The concept of learning-by-doing has been used by Kenneth Arrow in his design of endogenous growth theory to explain effects of innovation and technical change. Robert Lucas, Jr. (1988) adopted the concept to explain increasing returns to embodied human capital. Yang and Borland (1991) have shown learning-by-doing plays a role in the evolution of countries to greater specialisation in production. In both these cases, learning-by-doing and increasing returns provide an engine for long run growth. Recently, it has become a popular explaining concept in the evolutionary economics and Resource-Based View (RBV) of the firm. Toyota Production System is known for Kaizen, that is explicitly built upon learning-bydoing effects. PROFIT:In economics, the term profit has two related but distinct meanings. Normal profit represents the total opportunity costs (both explicit and implicit) of a venture to an entrepreneur or investor, whilst economic profit (also abnormal, pure, supernormal or excess profit, as the case may be monopoly or oligopoly profit, or simply profit) is, at least in the neoclassical microeconomic theory which dominates modern economics, the difference between a firm's total revenue and all costs, including normal profit. In both instances economic profit is the return to an entrepreneur or a group of entrepreneurs. Economic profit is thus contrasted with economic interest which is the return to an owner of capital stock or money or bonds. A related concept, sometimes considered synonymous in certain contexts, is that of economic rent - economic profit can be considered as entrepreneurial rent. Other types of profit have been referenced, including social profit (related to externalities). It is not to be confused with profit in finance and accounting, which is equal to revenue minus only explicit costs, or superprofit, a concept in Marxian economic

theory. Indeed, the dominant definition of the term today - and the one in use in this article - should be differentiated from that of the previously dominant school of classical economics, which defined profit as the return to the employer of capital stock (such as machinery, factories, and ploughs) in any productive pursuit involving labor. The definitions of neo- and classical theory are actually, however, equivalent, if one considers that profits return to those who invested (financial) capital. STANDARD OF LIVING:Standard of living is generally measured by standards such as real (i.e. inflation adjusted) income per person and poverty rate. Other measures such as access and quality of health care, income growth inequality and educational standards are also used. Examples are access to certain goods (such as number of refrigerators per 1000 people), or measures of health such as life expectancy. It is the ease by which people living in a time or place are able to satisfy their needs and/or wants. The idea of a 'standard' may be contrasted with the quality of life, which takes into account not only the material standard of living, but also other more intangible aspects that make up human life, such as leisure, safety, cultural resources, social life, physical health, environmental quality issues etc. More complex means of measuring well-being must be employed to make such judgments, and these are very often political, thus controversial. Even between two nations or societies that have similar material standards of living, quality of life factors may in fact make one of these places more attractive to a given individual or group. However, there can be problems even with just using numerical averages to compare material standards of living, as opposed to, for instance, a Pareto index (a measure of the breadth of income or wealth distribution). Standards of living are perhaps inherently subjective. As an example, countries with a very small, very rich upper class and a very large, very poor lower class may have a high mean level of income, even though the majority of people have a low "standard of living". This mirrors the problem of poverty measurement, which also tends towards the relative. This illustrates how distribution of income can disguise the actual standard of living. Likewise Country A, a perfectly socialist country with a planned economy with very low average per capita income would receive a higher score for having lower income inequality than Country B with a higher income inequality, even if the bottom of Country B's population distribution had a higher per capita income than Country A. Real examples of this include former East Germany compared to former West Germany or North Korea compared to South Korea. In each case, the socialist country has a low income discrepancy (and therefore would score high in that regard), but lower per capita incomes than a large majority of their neighboring counterpart. This can be avoided by using the measure of income at various percentiles of the population rather than a highly relative and controversial overall income inequality measure.

ECONOMIC MODEL:In economics, a model is a theoretical construct that represents economic processes by a set of variables and a set of logical and/or quantitative relationships between them. The economic model is a simplified framework designed to illustrate complex processes, often but not always using mathematical techniques. Frequently, economic models use structural parameters. Structural parameters are underlying parameters in a model or class of models. A model may have various parameters and those parameters may change to create various properties. OPPORTUNITY COST:Opportunity cost is the cost related to the next-best choice available to someone who has picked among several mutually exclusive choices. It is a key concept in economics. It has been described as expressing "the basic relationship between scarcity and choice." The notion of opportunity cost plays a crucial part in ensuring that scarce resources are used efficiently. Thus, opportunity costs are not restricted to monetary or financial costs: the real cost of output forgone, lost time, pleasure or any other benefit that provides utility should also be considered opportunity costs. The concept of an opportunity cost was first developed by John Stuart Mill. RENT:In Economics rent is typically defined by economists as an excess distribution to any factor in a production process above the amount required to draw the factor into the process or to sustain the current use of the factor. The disambiguation of economic rent from other unearned and passive increments has important implications for public revenue and tax policy. Natural economic rent can be collected by governments for the purpose of public finance without the adverse effect caused by taxes on production or consumption. So long as there is sufficient accounting profit in the production process, the rent of naturally occurring input resources such as land and minerals can inure to the benefit of the public purse. Alternatively, economic rent can be collected as royalties, or extraction fees in the case of minerals and oil and gas. Economic rent is closely related to producer surplus, but is measured in input units rather than output units. Economic rents, according to Tollison (1982), are "excess returns" above "normal levels" and they are associated with a lack of competition in markets. Tollison defines economic rent as "a return in excess of the resource owner's opportunity cost". Henry George, best known for his proposal for a single tax on land, defined rent as "...the part of the produce that accrues to the owners of land (or other natural capabilities) by

virtue of ownership" and as "the share of wealth given to landowners because they have an exclusive right to the use of those natural capabilities". ENTREPRENEURSHIP:Entrepreneurship is the act of being an entrepreneur, which can be defined as "one who undertakes innovations, finance and business acumen in an effort to transform innovations into economic goods". This may result in new organizations or may be part of revitalizing mature organizations in response to a perceived opportunity. The most obvious form of entrepreneurship is that of starting new businesses (referred as Startup Company); however, in recent years, the term has been extended to include social and political forms of entrepreneurial activity. When entrepreneurship is describing activities within a firm or large organization it is referred to as intra-preneurship and may include corporate venturing, when large entities spin-off organizations. TIME SERIES GRAPH:In Economics, a time series is a sequence of data points, measured typically at successive times spaced at uniform time intervals. Examples of time series are the daily closing value of the Dow Jones index or the annual flow volume of the Nile River at Aswan. Time series analysis comprises methods for analyzing time series data in order to extract meaningful statistics and other characteristics of the data. Time series forecasting is the use of a model to forecast future events based on known past events: to predict data points before they are measured. An example of time series forecasting in econometrics is predicting the opening price of a stock based on its past performance. Time series are very frequently plotted via line charts. Time series data have a natural temporal ordering. This makes time series analysis distinct from other common data analysis problems, in which there is no natural ordering of the observations (e.g. explaining people's wages by reference to their education level, where the individuals' data could be entered in any order). Time series analysis is also distinct from spatial data analysis where the observations typically relate to geographical locations (e.g. accounting for house prices by the location as well as the intrinsic characteristics of the houses). A time series model will generally reflect the fact that observations close together in time will be more closely related than observations further apart. In addition, time series models will often make use of the natural one-way ordering of time so that values for a given period will be expressed as deriving in some way from past values, rather than from future values. Methods for time series analysis may be divided into two classes: frequency-domain methods and time-domain methods. The former include auto-correlation, crosscorrelation analysis, spectral analysis and recently wavelet analysis; auto-correlation and cross-correlation analysis can also be completed in the time domain.

HUMAN CAPITAL:Human capital refers to the stock of competences, knowledge and personality attributes embodied in the ability to perform labor so as to produce economic value. It is the attributes gained by a worker through education and experience. Many early economic theories refer to it simply as workforce, one of three factors of production, and consider it to be a fungible resource -- homogeneous and easily interchangeable. Other conceptions of this labor dispense with these assumptions. MARGINAL BENEFIT:In economics, the marginal utility of a good or service is the utility gained (or lost) from an increase (or decrease) in the consumption of that good or service. Economists sometimes speak of a law of diminishing marginal utility, meaning that there are diminishing returns in consumption, so that the first unit of consumption of a good or service yields more utility than the second and subsequent units. The concept of marginal utility played a crucial role in the marginal revolution of the late 19th century, and led to the replacement of the labor theory of value by neoclassical value theory in which the relative prices of goods and services are simultaneously determined by marginal rates of substitution in consumption and marginal rates of transformation in production, which are equal in economic equilibrium. POSITIVE ECONOMICS:Positive economics is the branch of economics that concerns the description and explanation of economic phenomena. It focuses on facts and cause-and-effect behavioral relationships and includes the development and testing of economics theories. Earlier terms were value-free economics and its German counterpart wertfrei economics. Positive economics as science, concerns analysis of economic behavior. Positive economics as such avoids economic value judgements. For example, a positive economic theory might describe how money supply growth affects inflation, but it does not provide any instruction on what policy ought to be followed. BUSINESS CYCLE:The term business cycle (or economic cycle) refers to economy-wide fluctuations in production or economic activity over several months or years. These fluctuations occur around a long-term growth trend, and typically involve shifts over time between periods of relatively rapid economic growth (expansion or boom), and periods of relative stagnation or decline (contraction or recession). These fluctuations are often measured using the growth rate of real gross domestic product. Despite being termed cycles, most of these fluctuations in economic activity do not follow a mechanical or predictable periodic pattern.

ALLOCATIVE EFFICIENCY:Allocative efficiency is a theoretical measure of the benefit or utility derived from a proposed or actual choice in the distribution or apportionment of resources. Although there are different standards of evaluation for the concept of allocative efficiency, the basic principle asserts that in any economic system, choices in resource allocation produce both "winners" and "losers" relative to the choice being evaluated. The principles of rational choice, individual maximization, utilitarianism and market theory further suppose that the outcomes for winners and losers can be identified, compared and measured. Under these basic premises, the goal of maximizing allocative efficiency can be defined according to some neutral principle where some choices are objectively better than others. For example, an economist might say that a change in policy increases allocative efficiency as long as those who benefit from the change (winners) gain more than the losers lose. WAGES:A wage is a compensation, usually financial, received by workers in exchange for their labor. Compensation in terms of wages is given to workers and compensation in terms of salary is given to employees. Compensation is a monetary benefit given to employees in return for the services provided by them. LABOR:The term labor (or wage labour) connotes a socioeconomic relationship between a worker and an employer, especially one in which the worker sells their labour, contract employment, or salaried so-called "permanent", "direct" or "full-time" service, and carries with it an implication of a labour market with enough actors of each kind for a market determination of wages to arise. In exchange for the wages paid, the work product generally becomes the undifferentiated property of the employer, except for special cases such as the vesting of intellectual property patents in the United States where patent rights are always invested in the original personal inventor. A wage labourer is a person whose primary means of income is from the selling of his or her labour in this way. The term is also used as a substantive to refer to the sold labour power and the production process in which it is applied by an employer in exchange for the wage price.. There are substantial differences in the different arrangements, for example between independent contractors and an employer and that employers full-time employees where the former are essentially interacting like businesses with the latter arrangement being the common referent of the term as discussed in this article.

In modern mixed economies such as that of the United States, it is currently the dominant form of work arrangement. Although most work occurs in some form of this structure, the wage work arrangements of CEOs, professional employees, and professional contract workers are sometimes conflated with class assignments so that "wage labour" is considered to apply only to unskilled or manual labour. COMPARATIVE ADVANTAGE:In economics, the law of comparative advantage refers to the ability of a party (an individual, a firm, or a country) to produce a particular good or service at a lower opportunity cost than another party. It is the ability to produce a product with the highest relative efficiency given all the other products that could be produced. It can be contrasted with absolute advantage which refers to the ability of a party to produce a particular good at a lower absolute cost than another. Comparative advantage explains how trade can create value for both parties even when one can produce all goods with fewer resources than the other. The net benefits of such an outcome are called gains from trade. It is the main concept of the pure theory of international trade. POOL DATA:A pool data is a centralised database, where all necessary information to perform business transactions between trading partners is stored in a standardised way. A data pool is the common point in the communication between the trading partners, provide synchronization capability of their data. This information is accessible to all trading partners in a common, simple, fast and accurate manner. The information stored in a typical data pools master data Global Trade Item Number and GLN, as well as other core attributes, necessary for the smooth transaction of goods. For example, product description, dimensions, packaging levels, product category, company address, minimum order volume, etc. Suppliers upload data to a data pool, which the retailers download. This communication takes place under common rules and standards, with the consideration the business agreements between trading partners.

INFLATION:In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time. When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects an erosion in the purchasing power of money a loss of real value in the internal medium of exchange and unit of account in the economy. A chief measure of price inflation is the inflation rate, the annualized percentage change in a general price index (normally the Consumer Price Index) over time. DEFLATION:In economics, deflation is a decrease in the general price level of goods and services. Deflation occurs when the annual inflation rate falls below 0% (a negative inflation rate). This should not be confused with disinflation, a slow-down in the inflation rate (i.e. when inflation declines to lower levels). Inflation reduces the real value of money over time; conversely, deflation increases the real value of money the currency of a national or regional economy. This allows one to buy more goods with the same amount of money over time. MARGINAL COST:In economics and finance, marginal cost is the change in total cost that arises when the quantity produced changes by one unit. That is, it is the cost of producing one more unit of a good. Mathematically, assuming the cost function is differentiable, the marginal cost (MC) function is expressed as the first (order) derivative of the total cost (TC) function with respect to quantity (Q). Note that the marginal cost will change with volume, as a non-linear and non-proportional cost function includes

variable terms dependent to volume, constant terms independent to volume and occurring with the respective lot size, jump fix cost increase or decrease dependent to steps of volume increase.

In general terms, marginal cost at each level of production includes any additional costs required to produce the next unit. If producing additional vehicles requires, for example, building a new factory, the marginal cost of those extra vehicles includes the cost of the new factory. In practice, the analysis is segregated into short and long-run cases, and over the longest run, all costs are marginal. At each level of production and time period being considered, marginal costs include all costs which vary with the level of production, and other costs are considered fixed costs. If the cost function is differentiable, the marginal cost is the cost of the next unit produced referring to the basic volume.

If the cost function is not differentiable, the marginal cost can be expressed as follows.

A number of other factors can affect marginal cost and its applicability to real world problems. Some of these may be considered market failures. These may include information asymmetries, the presence of negative or positive externalities, transaction costs, price discrimination and others. NORMATIVE ECONOMICS:Normative economics is that part of economics that expresses value judgments (normative judgements) about economic fairness or what the economy ought to be like or what goals of public policy ought to be.