ECONOMICS Final: Study Guide A Collection of Financial Keywords and Phrases
Document Summary
Abandonment value: the value of a project if the project"s assets were sold externally; or alternatively, its opportunity value if the assets were employed elsewhere in the firm. Abc method of inventory control: method that controls expensive inventory items more closely than less expensive items. Absolute advantage: the ability to produce a good at lower cost, in terms of labor, than another country. An absolute advantage exists when a nation or other economic region is able to produce a good or service more efficiently than a second nation or region. Absolute-priority rule: the rule in bankruptcy or reorganization that claims of a set of claim holders must be paid, or settled, in full before the next, junior, set of claim holders may be paid anything. Absorption and balance of trade: total demand for goods and services by all residents (consumers, producers, and government) of a country (as opposed to total demand for that country"s output).
