Economies and diseconomies of scaleEconomies of scale exist if average costs decrease as the size of (scale) of the firm increases. A firm is facing diseconomies of scale if unit costs rise as it further expands in size.
ElasticityThe responsiveness of an economic variable to a change in some other economic variable. For example, price elasticity of demand.
EquilibriumA market is considered to be in equilibrium if there is no tendency for change. This will be the case if quantity demanded per period equals quantity supplied.
Exchange ratePrice of one currency expressed in terms of another currency.
Exit barriersCosts that a firm incurs upon exit.
Expenditure changing policyExpenditure changing demand management policies that will lower aggregate demand and thus national income thus reducing imports and a trade deficit. Expenditure switching: policies that will try to switch expenditures away from imports and towards domestic products by making imports relatively more expensive and thus undesirable. For example, through devaluation or through the imposition of tariffs.
Expenditure switching policyRefer to expenditure changing policy
Export subsidyA payment granted by a government to domestic firms to strengthen their competitiveness against foreign producers.
ExternalitiesWhen an economic activity creates benefits or imposes costs for third parties for which these do not pay or do not get compensated respectively.
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