Business and Economic Terms, Abbreviations, Terms, MBA Exam Ten Tips, Exam Ten Tips round for MBA

Business and Economic Terms

Business and Economic Terms-India
Keynes	UK economist who urged state intervention to achieve full employment.
Liabilities	Money owed.
Limited companies	Companies which have limited liability.
Liquidity ratio	The proportion of a commercial bank's assets which can be converted into cash quickly.
Liquidity trap	When the rate of interest is so low (and the price of bonds is so high) that everyone anticipates a future fall in the price of bonds.
Long-run	Period of time when all factor inputs, including capital, can be changed.
Lorenz curve	A curve showing the proportion of income earned by a cumulative percentage of the population.
Macroeconomic policies	Policies designed to influence the level of employment, the price level, economic growth and the balance of payments.
Marginal cost curve	A curve showing the addition to total cost resulting from producing one more unit.
Marginal propensity to consume	The proportion of each extra pound of disposable income spent by households.
Marginal propensity to save	The proportion of each extra pound of disposable income not spent by households.
Marginal revenue	The income received from the sale of one extra unit.
MEA	Multilateral environmental agreement
MERCOSUR	Southern Common Market
MFA	Multifibre Arrangement (replaced by ATC)
MFN	Most-favoured-nation
Microeconomics	The behavior of an individual consumer, firm and industry.
Monetarists	A group of economists who believe that changes in the money supply have a significant impact on the economy.
Money illusion	May occur where people confuse changes in nominal balances with changes in real balances.
Monopolistic competition	An industry made up of a large number of small firms who produce goods which are only slightly different from that of all other sellers.
Monopsony	A market where there is only a single buyer.
Most favored nation (MFN)	A country’s trade policy that gives to a trading partner the same customs and tariff treatment as the most favored nation.
MTN	Multilateral trade negotiations
Multi Fiber Agreement (MFA)	Provision of GATT governing international trade in textiles that lets a country apply numerical restrictions on textile imports when it considers them necessary to prevent market disruption. MFA provides a framework for regulating international trade in textiles and apparel. It covers wool, man-made (synthetic) fibers, silk blends and other vegetable fiber textiles and apparel.
Mutual Fund	US name for an open-ended managed fund not quoted on a stock exchange, equivalent to a unit trust in the UK. Mutual funds are a popular way for individuals to spread the risk of investing in bonds and equities and are much used for retirement savings.

(DOU 13082007)