Economics Terms Lexicon - Authoritative Dictionary and Knowledge Tests

About Economics Terms Lexicon

Welcome to EconomicsTermsLexicon.com! Our site offers a comprehensive and authoritative dictionary of economic terms, providing detailed definitions and explanations. Each dictionary entry references books, official publications, and government websites to ensure accuracy and reliability.

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Averch-Johnson Effect
The observation that whenever the profit-to-capital ratio of a company is regulated, it has an incentive to over-invest in capital, resulting in inefficiently high levels of capital accumulation.
Avoidable Cost
An economic term referring to costs that can be eliminated by ceasing an activity or production.
Avoidance - Definition and Meaning
Exploring the concept of avoidance, with a focus on its applications within economics and tax policy, and its differentiation from evasion.
Axiom - Definition and Meaning
A logical starting point used in economic deduction without needing proof or demonstration.
Backdoor Monetary Policy
The conduct of monetary policy through channels that are not publicly observable.
Backward Integration
The expansion of a firm’s activities to include the production of inputs formerly sourced from outside.
Backwardation
A situation in which the futures price of a commodity is lower than the spot price.
Bad Bank
A financial institution created to hold toxic assets to remove problem assets from other banks' balance sheets.
Bad Debt
Debt that is known to be impossible or unlikely to be repaid.
Bad Debt Provision
The estimation recorded in the accounts by a creditor reflecting the anticipated write-offs of bad debts.