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08-07-2011 08:59 AM

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Gibrat's law (L2, R1)<br />The relationship between size and rate of growth of an entity such as a firm or a city.<br /><em>See also:</em> Zipf's law <br /><em>Reference</em><br />Sutton, J. (1997) 'Gibrat's legacy', Journal of Economic Literature 35: 40 59.

<strong>Need cutoff</strong> – The need amount that students had to demonstrate to qualify for the Gallagher and College Guarantee Programs through the 2006-07 academic year. The MDHE estimated the need cutoff in the spring of each year before final appropriations and student eligibility was known. The actual need cutoff was then determined prior to setting spending authority in FAMOUS.

long (F3)<br />A foreign exchange surplus. A foreign exchange dealer is 'in long' when his or her bank has a surplus of a particular currency.<br /><em>See also:</em> short

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<strong>Perkins Loan</strong> – The Federal Perkins Loan Program, a campus-based Title IV student loan program administered by the school.
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<strong>SAL</strong> – School as Lender. A school, other than a correspondence school, that has been approved to act as a lender under the FFEL Program for its graduate and professional students. (Note: to participate as an SAL, the school had to be participating as of April 1, 2006. No new schools are being approved to act as their own lender.)

regional wage bargaining (B)<br />Wage negotiations for an industrial or occupational group covering workers in part of a country. This departure from national wage bargaining is popular with many employers. It enables pay to reflect more closely LOCAL LABOUR MARKET conditions; unions have often objected to this as it gives rise to regional wage differentials thus departing from the hallowed union tradition of setting the same pay for all workers of the same occupation or industry.

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08-07-2011 10:19 AM

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<strong>Electronic Funds Transfer (EFT)</strong> – The transfer of funds via an electronic method such as wire, which is realtime, or Automated Clearinghouse (ACH), an overnight process.
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<strong>Be A Smart Borrower Expansion Portfolio</strong> – A resource for students taking loans. It helps keep the borrower' s important information collected and organized. Contact the MDHE default prevention department for more information: marilyn.landrum@dhe.mo.gov or (573) 522-6285.

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general government net worth (H6) The fixed capital stock of central or local government less its net financial liabilities. This BALANCE SHEET approach to the study of government finance has been suggested as a framework for assessing a government's ability to sustain its economic policies. It also has the useful function of making governments distinguish productive investments from debt servicing.
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rate of return (GO, M2)<br />The ratio of the earnings from an asset to the value of that asset, usually expressed as a percentage. Companies calculate this as the ratio of pre-tax profit to the capital employed. Private and social rates of return of HUMAN CAPITAL and of major public investments are often calculated. An alternative measure is the INTERNAL RATE oF RETURN which takes into account the timing of earnings.

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08-07-2011 11:11 AM

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new industrial state (PO)<br />GALBRAITH's term for the modern economy which is dominated by a 'technostructure' of large firms dedicated to stable production and the creation of wants so that there is no deficiency of demand for their products. He argues that the planning system used can be practised by both CAPITALIST and SOCIALIST ECONOMIES.<br /><em>Reference</em><br />Galbraith, LK. (1967) The New Industrial State, London: Hamish Hamilton; Boston, MA: Houghton Mifflin.
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<strong>SMTP</strong> – Simple Mail Transfer Protocol, a syntax for text messages sent from one computer to another using email.
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ECONOMY that causes self-interested economic agents through exchange to promote the general good of society. The idea originated in the discussion of natural law by the English philosopher John LOCKE but is usually associated with Adam SMITH who, in his Theory of Moral Sentiments and less so in his Wealth of Nations, developed this PHYS!OCRATIC notion. Smith's use of the principle was less sensational than MANDEVILLE's that described how private vices promote public virtue. Ahmad has identified four functions of the 'invisible hand': to limit the size of the landlord's stomach, to curb the residual selfishness of a landlord, to optimize production and to preserve the natural order.<br /><em>Reference</em><br />Ahmad, S. (1990) 'Adam Smith's four invisible hands', History of Political Economy 22: 137-43.

normative economics (A1)<br />Economics based on value judgments stating what should be the case, e.g 'personal incomes should be equal'. The distinction between this type of economics and POSITIVE ECONOMICS includes in its ancestry HUME's 'is-ought' dichotomy. Normative issues, cen tral to WELFARE ECONOMICS, cannot be settled by appeals to facts.<br /><em>See also:</em> economic methodology <br /><em>Reference</em><br />My rdal, G. (1954) The Political Element in the Development of Economic Thought, trans. P Strecten, London: Routledge & Kegan Paul.

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<strong>Web loan delivery product</strong> – An online system that allows schools, borrowers, and/or lenders to inquire on loans or borrowers, submit change transactions, manage files, and guarantee new loans via the internet. The MDHE' s product is called MODEL Direct.

<strong>Week of instruction</strong> – Any period of 7 consecutive days in which the school provides at least one day of regularly scheduled instruction or examinations.
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<strong>Assignment</strong> – Language placed on or attached to the promissory note indicating a change or transfer of loan ownership (e.g., when a loan is sold by a lender to a secondary market).

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Caribbean Basin Initiative (FO)<br />An arrangement agreed in 1984 to give exports of countries of the Caribbean region tariff-free access to the USA.

debenture (G1)<br />A company or corporation security, usually taking the form of a fixed interest
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latent entrepreneurship (M1)<br />The unfulfilled desire to set up one's own business.
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yield gap (GO)<br />The YIELD on equities minus the yield on bonds. Inflation after 1959 depressed the capital values of bonds, raising their yields in both the UK and the USA: this created a reverse yield that has fluctuated between about 1 per cent and 9 per cent.

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