economics terms

24 Aug 2021

IB HL and SL Economics Glossary

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There are currently 15 names in this directory beginning with the letter C.

Cartel is a group of producers in an industry that join together to regulate supply (or fix or increase prices)

Capital flight
Capital flight occurs when foreign currencies (or other financial assets) flow out of a country to seek a “safe haven” in another country

Central bank (responsibilities)
Central bank (responsibilities) include being a regulator of commercial banks, being banker to the government, controlling interest rates 
and money supply and maintenance of price stability 
and control of exchange rate policy

Centrally planned economy
Centrally planned economy is an economic system where resources are allocated by the government or a central planning authority

Ceteris paribus
Ceteris paribus is a Latin expression which means "let all other things remain equal"

Comparative advantage
Comparative advantage (HL) implies that one country is able to produce a good at a lower opportunity cost than another.

Complement goods
Complement goods are goods which are used together. Examples computers and computer software

Complementary goods
Complementary goods are goods that are consumed with each other (joint demand) or that they are goods that have negative cross price elasticity of demand

Consumer surplus
Consumer surplus is the difference between how much the consumers in the market are prepared to pay and how much they actually pay.

Consumption is spending by households on domestic consumer goods and services over a period of time

Crowding out
Crowding out is a situation where the government spends more (government expenditure) than it receives in revenue (mainly taxation), and needs to borrow money, forcing up interest rates thereby reducing investment and consumption


Current account (balance)
Current account (balance) is a record of the revenues earned from the export of goods and services and the expenditure on imports of goods and services.

current account deficit
current account deficit is where the value of total imports of goods and services plus net income flows are greater than the value of total exports of goods and services

current account surplus
current account surplus is where revenues from the exports of goods and services plus net income flows are greater than the spending on the imports of goods and services

Customs Union
Customs Union a form of economic integration where member countries agree to liberalize trade (trade freely amongst themselves) and adopt a common external tariff (or common trade policies towards non-members)
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