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

Business and Economic Terms-India
NAFTA	North American Free Trade Agreement
NASDAQ	Started in the US, 1971, as an automated over-the-counter security quotes system — the acronym stands for National Association of Securities Dealers' Automated Quotation. NASDAQ evolved into the world's first electronic stock market.
Neo-classical theory	The view that markets operates efficiently and that the way to increase output and employment is to raise aggregate supply.
Net asset value (NAV)	The market value of a fund share, usually calculated daily after the close of trading.
North American Free Trade Agreement (NAFTA)	Free trade agreement involving Canada, the US and Mexico entered into in January 1994. It progressively eliminates almost all bilateral trade barriers between the three countries.
OECD	The Organization for Economic Cooperation and Development.
Offer curve of labor	The number of hours of labor is prepared to work at different levels of income.
Oligopolies	Markets dominated by a few sellers who account for a large proportion of output.
Open market operations	Where the Bank of England sells short-term government securities and bills, thereby reducing retail banks' liquid assets and raising interest rates.
Opportunity cost	The decision to produce or consume a product involves giving up another product; the real cost of an action is the next best alternative forgone.
OTC (over the counter)	Trading in shares away from organized exchanges; it is usually carried out over the telephone or via a computer network.
Pareto criteria	A reallocation of resources is desirable only if someone gains and no one loses.
Perfect competition	An industry made up of a large number of small firms, each selling homogeneous (identical) products to a large number of buyers.
Phillips curve	Shows the relationship between the rate of unemployment and the rate of inflation.
Price discrimination	When the same product is sold in different markets for different prices.
Price elasticity of demand	Measures the responsiveness of demand to a given change in price.
Price elasticity of supply	Measures the responsiveness of supply to a given change in price.
Primary markets	The placing of new stocks, shares, bonds, etc. Existing securities are traded in the secondary market.
Primary sector	That part of the economy concerned with agriculture and the extraction of raw materials.
Producer surpluses	The difference between the minimum price a producer would accept to supply a given quantity of a good and the price actually received.
Progressive income tax	A tax which takes a higher percentage of the income of the rich than the poor.
PSE	Producer subsidy equivalent (agriculture)
PSI	Pre-shipment inspection
Purchasing power parity theory	Suggests that the prices of goods in countries will tend to equate under floating exchange rates so that people would be able to purchase the same quantity of goods in any country for a given sum of money.
Quantity theory of money	The view that changes in the money supply have a direct and proportionate effect on the price level.
Repo rate	The interest rate at which a central bank will lend against the security of its government's paper.

(DOU 13082007)