principal-agent problem.

one person, the principal, hires an agent (e.g. a sales or finance manager) to perform tasks on his behalf but he cannot ensure that the agent performs them in precisely the way the principal would like. The decisions and the performance of the agent are impossible and or expensive to monitor and the incentives of the agent may differ from those of the principal.

offsetting the principal agent problem is the introduction of other variants of performance-related pay or long-term employment contracts for senior management.

Production Possibility Frontiers

Can be under, but not over. Can underproduce but can not used more reosurces than have. Therefore oppurnity cost exist, and doesnt remain the same, as there is a curve in the PPF. In a straight PPF, constant opportunity cost.

Accelerationist theory

The theory that unemployment can only be reduced below the natural level at the cost of accelerating inflation. The idea of this natural level of unemployment

Ayssmetrical info

Examples of situations where the seller usually has better information than the buyer are numerous but include used-car salespeople, mortgage brokers and loan originators, stockbrokers, Realtors, and real estate agents. Examples of situations where the buyer usually has better information than the seller include estate sales as specified in a last will and testament, life insurance, or sales of old art pieces without prior professional assessment of their value. This situation was first described by Kenneth J. Arrow in an article on health care in 1963.[5]

Arbitrage

Buying an asset in one market and simultaneously selling an identical asset in another market at a higher price. Sometimes these will be identical assets in different markets, for instance, shares in a company listed on both the London Stock Exchange and New York Stock Exchange.

Less common due to globalisation

Asymmetric shock
When something unexpected happens that affects one economy (or part of an economy) more than the rest. E.g oil shocks
Gross investment

This may be a constant problem for those responsible for setting the interest rate for the euro given the big differences--and different potential exposures to shocks--among the economies within the euro zone.

the production of new capital goods and the improvement of existing capital goods, including depreciation

GDP GNP

GDP is the market value of everything produced within a country; GNP is the value of whats produced by a countrys residents, no matter where they live.

Assest vs Liabilites

Quantative easing

Instead of raising money by selling bonds, just creating electionly money to buy own bonds.

Adaptive expectation hypothesis

People base expectation of inflation on previous experience with inflation

Appricatation

Rise in exchange rate for domestic currecy over forgien currencies

Aggreagate Demand

C (consumer spending) + I (investment) + G (government spending) + (X (export) M (imports))

Ad vorlem tariffs

Tariffs percentage of import

Adjustable peg

Exchange fixed, but can be changed if damrtaic

Allocative efficiency

situation where no one could be made better off without making someone else at least as worth off.

when price = marginal cost. Can see here monolpoy is inefficient because should be at ar=mc

AR

Average revenue actually goes by a simpler and more widely used term... price

social Efficiency The socially efficient level of output and or consumption occurs when social marginal benefit = social marginal cost.

Marginal social cost - not simply the direct cost borne by the producer, but also must include the costs to the external environment and other stakeholders.

The balancing item

The balancing item, which may be positive or negative, is simply an amount that accounts for any statistical errors and assures that the current and capital accounts sum to zero

Balance of payments Board narrow payments

Bilateral monopoly

Monopsy buyer and monopoly seller

Bretton woods system

Gold standard and other currinces pegged to dollar

In barometric firm price leadership, the most reliable firm emerges as the best barometer of market conditions, or the firm could be the one with the lowest costs of production, leading other firms to follow suit. Although this firm might not be dominating the industry, its prices are believed to reflect market conditions which are the most satisfactory, as the firm would most likely be a good forecaster of economic changes. In dominant price leadership, one firm takes up most of the market but leaves room on the fringe for competition. On this fringe, the rest of the firms operate as perfectly competitive firms, who have higher costs and lower profits. Meanwhile, the dominant firm acts as a monopoly, since it has higher prices, greater market share, and lower costs. Closed shop Only employ union members

Consumer surplus

Excess that person would have been willing to pay over what actually pays

CODs

Coleratized debt obligations a type of securities morgate, credit cridt etc debt

Compromise stragery Congolmerate merger

Worst and best outcome better than minimax Two firms in different industries merge

Coase's theorem

economic efficiency is achieved best by full allocation of, and completely free trade in, property rights. It states that what really matters is that everything is owned by someone and that, initially, who owns what doesn't matter. Based on two main ideas freedom of individual choice, and zero transaction costs bargaining must be costless; if there are costs associated with bargaining (such as meetings or enforcement), it will affect the outcome radio stations

CAC systems

Command and control system- regulations back up by penataies