Ratchet Effect

• Abenomics is a set of economic policies championed by Japanese Prime Minister Shinzo Abe when he came to power for the second time in 2012.

• Affiliation contracts are “take it or leave it” agreements where you have to accept or reject the contract as a whole.

• Litigation is the process by which the judge of the court resolves disputes between two parties.

• Asset protection refers to the strategies used to protect one’s wealth from taxation, confiscation or other losses.

• Barriers to entry describe high start-up costs or other barriers that prevent new competitors from easily entering an industry or area of business.

• Barter is the exchange of goods and services between two or more parties without the use of money.

• “Best Effort” is a legal term that represents the obligation of a party to a contract to take all possible steps to fulfill the terms of the agreement.

• Collusion occurs when entities or individuals work together to influence the market or pricing in their own interest.

• Comparative advantage is the ability of an economy to produce a particular good or service at a lower opportunity cost than its trading partners.

• A deed is a signed legal document that grants its owner the ownership of an asset, but may impose a number of conditions on the transfer of ownership.

• The law of demand concerns the changing desire of consumers to purchase goods and services at given prices.

A demand shock is a sudden change in the demand for a good or service.#

• The theory of demand describes how a change in the quantity of a good or service that consumers will require affects its price in the market,

• Negative economies of scale occur when the expansion of production is accompanied by an increase in average unit costs.

• Disequilibrium is when external forces cause an imbalance between supply and demand in the market. In response, the market enters a state in which supply and demand do not match.

• A domestic corporation conducts business in its own country or state.

• Economic equilibrium is a state in which market forces are balanced, a concept borrowed from the physical sciences, where observable physical forces can balance each other.

• An economic indicator is a macroeconomic measurement used by analysts to understand current and future economic activity and opportunities.

• Economic recovery is the process of reallocating resources and workers from failed businesses and investing in new jobs and uses after a recession.

• An economist is an expert who studies the relationship between a society’s resources and its production or output, using a number of different indicators to predict future trends.

• Efficiency occurs when you reduce waste to produce a certain amount of goods or services.

• Companies operating in highly competitive industries offer products and services that are elastic as companies tend to charge prices.

• The market is said to have reached an equilibrium price when the supply of a commodity matches the demand.

• A trade-off between equity and efficiency arises when there is some conflict between maximizing net economic efficiency and achieving other social goals.

• An Express Warranty is a seller’s agreement to repair or replace a defective product, component, or service within a specified period of time.