Important Economics Terms

1.Balance of Trade ( Or Payment ) : 

The difference between the exports and imports of two countries in trade with each other is called balance of payment. IF the difference is positive the Balance of Payment (BoP) is called favorable and if negative it is called unfavourable.

2.Bilateral Monopoly : 

Existence of single buyer and single seller.

3.Budget Deficit : 

When the expenditure of the government exceeds the revenue, the balance between the two is the budget deficit.

4.Dumping: 

Sale of commodity at different prices in different markets, lover price being charged in a market where demand is relatively elastic.

5.Fiscal Policy : 

Government's expenditure and Tax Policy.

6.Monopoly: 

Single seller selling single product.

7.Monopolistic Competition : 

Existence of too many sellers selling differentiated products.

8.Monopsony: 

Single Buyer buying product being unique.

9.Oligopoly: 

Existence of few sellers and few products. Price war is a common feature.

10.Perfect Competition: 

Existence of too many sellers selling homogeneous product.