Minimum Support Price
Minimum Support Price is the minimum price at which government purchases crops from the farmers, whatever may be the price for the crops. It gives sufficient amount to the farmers for their crops. It saves the farmers from depleting profit during the bumper production years.
A cartel is an agreement between competing firms to control prices or exclude entry of a new competitor in a market. It is a formal organization of sellers or buyers that agree to fix selling prices, purchase prices, or reduce production using a variety of tactics. OPEC (Organisation of Petroleum Exporting Countries) is the example of cartel.
When a single firm has total control of a product in a particular sector, this phenomenon is known as the Monopoly. In monopoly there is no competition in the market for that product and the firm can charge any price from customers because they are the only one in the market who are providing that product. A monopoly exists when a specific person or enterprise is the only supplier of a particular commodity. E.g: Cement and Oil companies.
Monopsony is a market situation in which there is only one buyer and several sellers are trying to sell their goods to that particular buyer. A monopsony occurs when a single firm acts as a sole purchaser for multiple sellers, driving down the price of seller inputs through the amount of quantity that it demands.
Price which is controlled by some institution, in most cases the institution will be government. e.g: Controlling the price of petrol and LPG.
Footloose industry is a general term for an industry that can be placed and located at any location without effect from factors such as resources or transport. These industries often have spatially fixed costs, which mean that the costs of the products do not change despite where the product is assembled. For e.g: Software Industries.
When government sells shares of a government company to a private company or public this process is called as disinvestment.
Third World Countries
"Third World" is a phrase commonly used to describe a developing nation, but actually started as term used to describe a country's that remained non-aligned with either NATO, or the Communist Bloc. The United States, Western European nations and their allies represented the First World, while the Soviet Union, China, Cuba, and their allies represented the Second World. The countries which remained neutral comes under the third world countries.
Arbitrage is the simultaneous purchase and sale of securities, currency, or commodities from one market to another market where there is a difference in price to make profit. In arbitrage a person buy foreign currency or commodity from the place where it is available at lowest price and sells it to the place where it is available at higher price.
Money for which tax is not paid or which is earned through illegal means is known as the black money.
Blue Chip Companies
Blue Chip Company is very strong financially, with a solid track record of producing earnings and only a moderate amount of debt. It also has a strong name in its industry with dominant products or services. Typically, these companies are large (international) corporations that have been in business for many years and are considered to be very stable. Investments in blue chip company’s shares are mostly safe.
Conspicuous consumption is the purchase of luxury goods or services for the specific purpose of displaying one's wealth. Conspicuous consumption is a means to show ones social status, especially when the goods and services publicly displayed are too expensive for other members of a person's class.
Money which is available lowest interest rate is known as cheap money. For e.g: Agriculture Loan.
Money which is available at the highest interest rate in market. For E.g: Gold Loan, Personal Loan etc.
Complementary goods are those goods, which depends on each other. Increase in the price of one commodity affect the demand of the other commodity. For E.g: Shoes and Socks, Ink and pen.
A traditional system of transferring money used in Arab countries and South Asia, whereby the money is paid to an agent who then instructs an associate in the relevant country or area to pay the final recipient. Transactions between Hawala brokers are done without promissory notes because the system is heavily based on trust.
Point of Sale (POS)
It is a place where retail transactions are carried out generally we use a card swipe machine to make transactions at POS.
A Permanent Account Number (PAN) is a ten-digit alphanumeric number, issued in the form of a laminated card, by the Income Tax Department, to any person who applies for it.