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floor price (D4, K2)<br />A minimum controlled price, e.g. a MINIMUM WAGE or agricultural product prices. Minimum wage laws are enforced by inspectorates; agricultural prices are prevented from falling below pre-set minima by government purchases of excess production. If P1 is the floor price and Pe is the equilibrium price the government can
price determination (DO)<br />The method used by a market or administrators to fix a price. Increasingly many economists have noted that some important prices are not determined in the market by demand and supply but by herd instinct, social contract, negotiation, domination, politics, power and speculation: major examples of non-market-determined prices are oil prices, the wage rate and the rate of interest.<br /><em>See also:</em> administered pricing
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Buddhist economics (04)<br />An approach to ECONOMIC GROWTH which takes into account spiritual development and does not squander NATURAL RESOURCES so that all have a 'right livelihood'.<br /> <br /><em>Reference</em><br />Buiter, W. (1989) Principles of Budgetary and Financial Policy, Hemet Hempstead: Harvester Wheatsheaf.<br /> Schumacher, E.F. (1973) Small is Beautiful: a Study of Economics as if People Mattered, ch. 4, London: Blond & Briggs.
interest (E4)<br />1 The income paid to the owner of capital for its use.<br /> 2 A legal title to property.<br /><em>See also:</em> rate of interest
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