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hard ecu (F3)<br />A version of the ecu proposed by the UK initially as a COMMON CURRENCY to be used in the EUROPEAN COMMUNITY for all monetary transactions alongside existing national currencies. The hope was that this ecu would become a single currency.

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dual pricing (D4, F3)<br />The practice of quoting prices in two currencies. This occurs as part of the transition to a new currency or because of lack of confidence in the national currency. This occurred in many eastern European countries and in EUROPEAN UNION countries after the introduction of the EURO.

maximin (C7)<br />Maximizing the gains to the worst off<br /><em>See also:</em> Rawlsian justice

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compensating wage differential (J3)<br />A differential in wages or salaries created to compensate for a poor job attribute, e.g. a health hazard or variability of earnings. Firms grant these differentials to enable them to retain staff in undesirable jobs and to recruit new workers.

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<strong>Accrued interest</strong> – Each day interest is calculated on the unpaid principal balance of a loan and increases (accrues). Interest accrues on a subsidized Stafford Loan after the grace period is completed and the borrower enters repayment. For unsubsidized Stafford, parent PLUS, and Grad PLUS Loans, on the other hand, interest begins to accrue after the first disbursement of the loan.

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<strong>Verification</strong> – A school' s procedure for checking the accuracy of information reported by students on their FAFSAs.
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National Enterprise Board (L5)<br />A UK public corporation created by the Industry Act 1975 to encourage industrial investment and restructuring; in a sense a SUCCessor to the INDUSTRIAL REORGANIZATION coRPORATION. It used its funds to invest in private sector firms to effect mergers. Also

<strong>Verification</strong> – A school' s procedure for checking the accuracy of information reported by students on their FAFSAs.

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cognitive dissonance (DO)<br />The coexistence of discordant cognitions. As a consequence of this dissonance, people will avoid situations and information likely to increase such discomfort. This theory of Festinger's, about an unpleasant line, usually referred to as r 1 sured by the formula It is meastate of tension, has been applied by economists to the explanation of work behaviour, home ownership and discrimination.<br /><em>See also:</em> economics and psychology <br /><em>Reference</em><br />Akerlof, G. and Dickens, WT. (1982) 'The economic consequences of cognitive dissonance', American Economic Review 72: 307-19.<br /> Festinger, L. (1957) A Theory of Cognitive Dissonance, Evanston, IL: Row, Peterson.
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e-tail company (L8)<br />A company which retails its goods and services using e-maiL
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<strong>ACE</strong> – American Council on Education.

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Prime-1 (GO)<br />The top rating of creditworthiness of coMMERCIAL PAPER made by Moody's Investors Service.<br /><em>See also:</em> AAA
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<strong>Excel</strong> – A Microsoft spreadsheet software package. Reports available within MODEL Direct may be exported in a Microsoft Excel format.
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rational decision (DO)<br />A choice that best serves a decision-maker in pursuit of a particular objective.
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Variable observed binary economy (PO)<br />An ECONOMY with many personal incomes arising from both labour and capital. This occurs because of widespread ownership of financial capital. Despite economies becoming capital intensive, this form of organization enables a high proportion of a population to share in rising incomes. Wider dispersion of wealth could promote social justice, democracy, efficiency and economic growth.<br /> <br /><em>Reference</em><br />Ashford, R. (1996) 'Louis Kelso's binary economy', Journal of Socio-Economics 25: 1-53.<br /> Kelso, L.O. and Adler, M.J. (1958) The Capitalist Manifesto, New York: Random House.

simulation model (C9)<br />A model of economic reality concentrating on the main and crucial features of an ECONOMY and attempting to estimate the relationships between those features with a view to estimating the effects of changing the values of those variables. Such models have been used in the study of cyclical fluctuations, in corporate decision making and national ECONOMIC PLANNING.<br /><em>Reference</em><br />Bonini, C.P. (1963) Simulation of Information and Decision Systems in the Firm, Englewood Cliffs, NJ: Prentice HalL Duesenberry, IS., Eckstein, 0. and Fromm, G. (1960) 'A simulation model of the United States economy in recession', Econometrica 28: 749-809.

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<strong>Withdrawal date</strong> – The date the student withdraws, as determined by the school. May also be referred to as the last date of attendance (LDA) or the out of school date (OSD).
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