Archives: Terms

Definition of Capital Goods Capital goods are goods that are used in the production of other goods or services. They are not finished goods or final products themselves, but rather, they are the means through which final products are created. These can include machinery, tools, buildings, vehicles, and equipment. Essentially, […]

Definition of Pink Book The term “Pink Book” usually refers to the United Kingdom’s Balance of Payments, a comprehensive statistical statement that tracks economic transactions between residents of the UK and the rest of the world over a specific period. Published annually by the Office for National Statistics (ONS), the […]

Definition of Piecework Piecework is a form of employment in which a worker is paid based on the amount of work completed rather than the amount of time worked. This system rewards efficiency and productivity, making it a common practice in industries where work can be easily quantified and measured. […]

Definition of Picking Winners Picking winners refers to a strategy often employed by governments or investors where they select and support specific industries, companies, or sectors believed to be capable of outperforming others and driving economic growth. This typically involves providing targeted financial assistance, tax incentives, or regulatory support with […]

Definition of Picketing Picketing refers to the action of protesting outside a place of work or another significant location to draw attention to a cause or issue, often used in the context of labor disputes. Typically, the protestors, referred to as picketers, carry signs outlining their grievances, distribute leaflets, or […]

Definition of Phytosanitary Measures Phytosanitary measures are inspections, regulations, and restrictions put in place to protect human, animal, and plant health from risks associated with the import or export of goods. These measures are typically enforced by governments through national plant protection organizations (NPPOs) to prevent the introduction and spread […]

Definition of Petrodollars Petrodollars refer to the U.S. dollars earned by a country through the sale of its petroleum (oil) to other countries. The term combines the words ‘petroleum’ and ‘dollars,’ reflecting the global practice of oil trade transactions in U.S. dollars. This concept is critical in understanding the dynamics […]

Definition of Petro-Currency Petro-currency refers to the phenomenon where countries that export significant quantities of oil conduct transactions and denominate their oil sales in a particular currency, usually the U.S. dollar. This concept is important because it illustrates the interconnection between the global oil market and the foreign exchange market. […]

Definition of the Peso Problem The Peso Problem refers to a situation in financial markets where expectations of a future event influence current prices, even if that event does not occur. The term originated from a situation in the 1970s when investors anticipated a devaluation of the Mexican peso that […]

Definition of Personal Sector The personal sector, also known as the household sector, refers to all individuals and families who consume goods and services, own assets, and possibly engage in production. This sector is a critical component of the economy, as it represents the consumption side of the supply and […]