Micro
The direct exchange of goods and services without the use of money
Barter
The price elasticity of demand measured over a price range using the midpoint or average as the base
Arc Elasticity
The process of determining the final value of a payment or series of payments when compound interest is
applied
Compounding
A written document by which a party legally transfers ownership of goods to another party
Bill of Sale
Use one product to gain consumer interest and then replace it with a readily available product
Bait & Switch
A formal organization of producers and manufacturers that agree to fix prices, marketing, and production
Cartel
Drop in consumption or investment spending caused by government spending
Crowding Out
Series of payments of a fixed amount for a specified number of periods
Annuity
A system in which overall pollution emissions are limited and a regulatory authority assigns tradable quota shares to polluters
Cap-and-Trade Program
A statistical technique that can be applied to data that exhibit “natural” groupings. A cluster is a group
of relatively homogeneous cases or observations.
Cluster Analysis
The percentage change in the quantity demanded for one good divided by the percentage change in the
price of a related good, ceteris paribus
Cross Price Elasticity
The term for the estimated value of a good or service not sold in the marketplace, and therefore has no
market price
Imputed Value
The difference between total sales revenue and total cost of goods sold, expressed as dollars or
percentage
Gross Margin (Profit)
Payments to producers in an amount or at a rate necessary to encourage producers to adopt one or more land management practices.
Incentive Payments
Concept that describes the series of steps by which consumers receive and use information in
reaching decisions about what actions they will take
Hierarchy-of-Effects Theory
The concept that the average total cost of production decreases as a result of increasing the number of
different goods produced
Economies of Scope
When changes in interest rates have no effect on output
Liquidity Trap
Value of an asset that is in the mind of the analyst justified by the facts, may be different from the asset’s
current market price or book value
Intrinsic Value
A good or service that people cannot be prevented from using
Non-Excludable
The conscious practice of stealing sales from an organizations existing products or brands to keep
customers from switching to another brand
Preemptive Cannibalism
A method of analyzing utility, or satisfaction derived from the consumption of goods and services, based
on a relative ranking of the goods and services consumed
Ordinal Utility
A graph that illustrations the relationship between inflation and the unemployment rate
Phillips Curve
An advertisement announcing a public offering
Tombstone
When the percentage reduction in acreage exceeds the percentage reduction in production under a land
diversion policy
Slippage
The increase in worth of a product or service as a result of a particular activity - in the context of
marketing, the activity might be packaging or branding
Value Added