Archives: Terms

Definition of Administered Price Administered prices are prices that are not determined by the natural forces of supply and demand within a free market, but are set by government decree or by monopolistic or oligopolistic companies. These prices can be found in various segments of the economy, including utilities, pharmaceuticals, […]

Definition of Adjustment Programme An Adjustment Programme refers to a set of economic and policy measures implemented by a country to correct imbalances in its economy. These programmes are often associated with international financial institutions such as the International Monetary Fund (IMF) or the World Bank, which provide financial assistance […]

Definition of Adjustment Costs Adjustment costs refer to the expenses that firms incur when they adapt to new economic environments, changes in the market, or shifts in regulatory policies. These costs can include expenses related to restructuring operations, changing the scale of production, introducing new technologies, or complying with new […]

Definition of Adjustment Adjustment in economics refers to the process through which markets move towards equilibrium or the manner in which economies respond to external shocks or policy changes. This can involve changes in prices, outputs, or levels of employment as a system seeks to re-establish a balance between supply […]

Definition of Adjusted R-Squared Adjusted R-squared is a statistical measure that represents the proportion of the variance for a dependent variable that’s explained by an independent variable or variables in a regression model. Unlike the R-squared value which can misleadingly increase with the addition of more variables, the Adjusted R-squared […]

Definition of Adjustable Peg The adjustable peg is an exchange rate policy in which a country’s currency’s value is fixed relative to a major currency or basket of currencies but can be adjusted by the national monetary authorities in response to specific, predefined conditions. This system combines aspects of both […]

Definition of Actuarially Fair Odds Actuarially fair odds are a concept rooted in the field of insurance and gambling, referring to a situation where the price paid for a bet or an insurance premium exactly equals the expected payout. In simpler terms, if an event has a 50% chance of […]

Definition of Acquisition An acquisition is a corporate action wherein one company, known as the acquirer, purchases most or all of another company’s shares or assets, effectively gaining control over the target company. Acquisitions are part of the broader mergers and acquisitions (M&A) landscape and can occur for various reasons, […]

Definition of Accounts Receivable Accounts receivable refers to the outstanding invoices a company has or the money owed by customers for goods or services that have been delivered or used but not yet paid for. It is considered an asset on a company’s balance sheet because it represents funds that […]

Definition of Accounts Payable Accounts payable represent a company’s obligation to pay off short-term debts to its creditors or suppliers. This financial accounting term is commonly used to refer to the money owed by a business to vendors or suppliers for goods and services purchased on credit. Accounts payable are […]