Econometrics - The branch of economics that uses the application of statistical tools and methods to the study of economic relationships and theories. It is a combination of statistics, mathematical economics, economic theory and economic statistics.
Balance of payments (BOP) - Record of the transactions of a country with the rest of the world. There are three main accounts in the balance of payments: (I) the current account, (2) the capital account, and (3) gold. The current account records trade in goods and services, as well as transfer payments. Services include freight, royalty payments, and interest payments. Transfer payments consist of remittances, gifts, and grants. The balance of trade simply records trade in goods. The capital account records purchases and sales of investments, such as stocks, bonds and land.
Beta - Measure of systematic or undiversifiable risk of a stock. A beta coefficient of more than 1 means that the company's stock price has shown more volatility than the market index (e.g., Standard & Poor's 500) to which it is being related; usually, that indicates it is a risky security. If the beta is less than I, it is less volatile than the market average. If it equals I, its risk is the same as the market index. High variability in stock price may indicate greater business risk, instability in operations, and low quality of earnings.
Bill of exchange - A certificate promising to repay a stated amount on a certain date, typically three months from the issue of the bill. Bills pay no interest as such, but are sold at a discount and redeemed at face value, thereby earning a rate of discount for the purchaser.
Development (economics) - A process to improve the lives of all people in a country. This involves not only raising living standards i.e. goods and services but the promotion of self esteem, dignity and respect, and the enlarging of peoples freedom to choose and to take control of their own lives.
Diminishing marginal utility – 1. As more units of a good are consumed, additional units will provide less additional satisfaction than previous units. Or 2. Where each additional dollar of income earned yield s less additional utility. - The principle of diminishing marginal utility. The more of a product a person consumes over a given period of time, the less will be the additional utility gained from one more units.
