CB2 Topics

List of CB2 Topics.

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Economics is divided into two main branches:

1. macroeconomics

2. microeconomics

Different economic systems:

• Free market economy

• Mixed economy

• centrally planned economy

• command economy

Different types of efficiency:

• Economic efficiency

• Productive efficiency

• Allocative efficiency

The development of economic thinking

Mark's labour theory of value

The factors that influence the demand for a good

The factors that influence the supply of a good

Goods

• Inferior goods

• Complementary goods

• Substitute goods

• Normal goods

A person's attitude to fair gambling:

• a risk-averse person

• a risk-neutral person

• a risk-loving person

Some important terms:

• Aggregate demand and supply

• Ad valorem tax

• Asymmetric information

• Adverse selection in insurance

• Accelerationist theory of inflation

• Automatic fiscal stabilisers

• Average revenue

• Balance of payment

• Balance of trade

• Bank levy

• Bank multiplier

• Barter economy

• Behavioural economics

• Bounded rationality

• Barriers to entry

• Bertrand model

• Bill of exchange

• Budget deficit and surplus

• Bygones principle

• By-product

• Capital

• Cartel

• Certificates of deposit

• Coase theorem

• Certainty equivalent

• Capital adequacy & Capital adequacy ratio

• Capital-output ratio

• Collateralised Debt Obligations (CDO)

• Collusive tendering

• Comparative advantage

• Concentration ratios

• Contestable markets

• Countervailing power

• Cournot model

• Crowding out

• Demand-side policy and Supply-side policy

• Diversification

• Deadweight welfare loss

• Decision tree

• Deflation

• Demand-side policies

• Depreciation

• Diseconomies of scale

• Diversification

• Dominant strategy

• Dumping

• Duopoly

• Equity

• Equilibrium price

• Econometrics

• Equi-marginal principle

• Economic efficiency

• Economic growth

• Economic profit

• Economies of scale

• Economies of scope

• Envelope curve

• Equation of exchange

• Exchange rate

• Exchange rate mechanism (ERM)

• Expectations-augmented Phillips curve

• Expected utility principle

• Explicit costs

• Externalities

• Factors (resources) of production

• Forwards and Futures

• Fiscal policy

• Fixed cost

• Franchise

• Free market

• Frictional unemployment

• Free-rider problem

• Future price

• Feasible insurance contracts

• Financial instruments

• Fine-tuning policy

• Game theory

• Giffen good

• GDP deflator

• Globalisation

• Goodhart's law

• Gross Domestic Product (GDP)

• Gross value added

• Growth vector-matrix

• Gross national income

• Heterodox economists

• Historical costs

• Horizontal expansion

• Hysteresis

• Input-output analysis

• Ignorance

• Immobility

• Implicit costs

• Inflation

• Cost-push inflation

• Demand-pull inflation

• Income elasticity of demand (IED)

• Indirect taxes

• Indifference analysis

• Indivisibilities

• Infant industry

• Inflationary gap

• Insurance

• Internal expansion

• International liquidity

• International trade

• Investment

• Interest rates

• Kinked demand curve model

• Labour power

• Liquidity vs. profitability

• Law of diminishing returns

• Licencing

• Liquidity ratio

• Liquidity trap

• Marginal costs and benefits

• Market clearing

• Marginal rate of substitution

• Macro-prudential regulation

• Managed flexibility (dirty floating)

• Marginal revenue

• Marginal utility

• Market segmentation

• Marketing mix

• Maturity gap

• Mergers

• Merit goods

• Moral hazard

• Minimum reserve ratio

• Monetary financial institutions

• Monetary policy

• Monetary transition mechanisms

• Money

• Money market equilibrium

• Monopolistic competition

• Monopoly

• Multiple-move games

• Nudge theory

• NAIRU (Non-accelerating inflation rate of unemployment)

• Nash equilibrium

• Natural monopoly

• Non-excludability

• Non-price competition

• Non-rivalry

• Opportunity cost

• Oligopoly

• Open market operations

• Outsourcing

• The optimum combination of factors

• Production possibility curve

• Perfect competition

• Phillips curve

• Production & Consumption

• Price elasticity of demand (PED)

• Price elasticity of supply (PES)

• Payoff table

• Patents

• Precautionary demand for money

• Price controls

• Price maker

• Price taker

• Price to book ratio

• Pricing

• Average cost pricing

• Full-range pricing

• Inter-temporal pricing

• Limit pricing

• Loss leader

• Mark-up pricing

• Multiple product pricing

• Peak-load pricing

• Market structure and pricing

• Predatory pricing

• Transfer pricing

• Price discrimination (PD)

• First-degree PD

• Second-degree PD

• Third-degree PD

• Price mechanism

• Price leadership

• Barometric firm

• Dominant firm

• Prisoners' dilemma

• Product differentiation

• Product life cycle

• Product strategy

• Profit maximisation

• Property rights

• Prudential control

• A quantitative theory of money

• Recession

• Risk

• Risk premium

• Rational decision making

• Rational expectations

• Real business cycle theory

• Real-wage unemployment

• Recession

• Recessionary gap

• Regional unemployment

• Replacement costs

• Repos

• Reverse Repos

• Research and development (R&D)

• Reserve capacity

• Restrictive practices policy

• Returns to scale

• Surplus value

• Scarcity

• Seasonal unemployment

• Secondary marketing

• Securitization

• Shadow pricing

• Short-run

• Speculation

• Speculators

• Shut-down point

• Short selling

• Spot price

• Shadow markets

• Sub-prime debt

• Subsidies

• Substitution effect

• Sunk costs

• Social efficiency

• Social optimum

• Supernormal profit

• Special Purpose Vehicles (SPVs)

• Specific tax

• Strategic alliance

• Strategic trade theory

• Structural unemployment

• The law of demand

• Taxation

• Taylor rule

• Technical efficiency

• Technological unemployment

• Technology policy

• Total utility and marginal utility

• Tacit collusion

• Takeover bid

• Takeover

• Terms of trade index

• Tie-in sales

• Time dimension of market adjustment

• Time periods for production

• Tit-for-tat games

• The principle of diminishing marginal utility

• The water-diamond paradox

• Tapered vertical integration

• Tariff

• Total cost

• Total revenue

• Trade unions

• Transfer payment

• Treasury bills

• The budget line

• The optimum consumption of point

• Unemployment

• Uncertainty

• Utility

• Valuation ratio

• Velocity of circulation

• Vertical integration

• Vertical restraints

• Variable cost

• Withdrawals from the circular flow

• World Trade Organization (WTO)