Here are Economics Terms beginning with E

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Econometrics is the application of statistical technques to the analysis of economic data so as to identify underlying economic relationship and theior statistical significance.

Economic and Monetary Union is the adoption by two or more countries of a single currency (or a "permanently" / "irrevocably" fixed exchange rate wirth no margin of fluctuation). In addition, there is a common central bank and common monetary polict with no capital contraols permitted between the members of the monetary union.

Economic discrimination occurs when workers with identical jobs and ability are paid different wages. It often related to sex, ethnicity, age and nepotism.

Economic efficiency  means there is full employment in the economy and all the goods and services are produced at the lowest average cost of production and consumers are maximizing their utility when consuming the goods and services produced.

Economic model is a framework for analysing an economic theory or the functioning of an economy. It is usually expressed mathematically and all assumptions are clearly set out.

Economic rent is the excess payment that a factor of production receives over what is required to keep that factor of production in its current role. For example a footballer may be paid $10,000 per week but would still be willing to work if necessary at $1,000 meaning the economic rent is $9,000.

Economies of scale are all those factors that lower the long run average cost of production.

Economies of scope occur when a firm by increasing the range of products that it produces is able to lower the cost of producing a range of its products. for example, when apple introduced the ipad it was able to lower the cost.

ECU the  European Currency Unit an artificial currency made up of a basket of 12 European Currencies under the European Monetary System. It because the Euro in  January 1999 at a parity of 1 ECU = 1 Euro.

Effective exchange rate is a an index of how a currency is performing against a weighted basket of other currencies. It is usually constructed in such a manner that a rise in the index means the currency being indexed has appreciated whereas a fall in the index means that the currency being indexed has depreciated.

Effective rate of protection measures the total effect of the entire tariff structure on the domestic value added when both intermediate and final goods are imported. As such it measure the overall amount of protection received by an industry from the imposition of tariffs.

Efficient Market Hypothesis (EMH)  a theory that says security prices reflect all available information thus making
it difficult for investors to make abnormal returns.

Efficiency wage hypothesis argues that the wage rate paid can affect an employees productivity. In particular, up to a point paying higher wages will increase a worker's productivity. For example a higher wage can increase quality of food consumption leading to higher productivity or mean a firm attracts better than average applicants.

Elastic demand - when a rise a 1 percent rise in price leads to a greater than 1 percent fall in sales meaning that total revenue deciles as price rises.

Elasticity measures the extent to which the demand for a product responds to changes in price (price elasticity of demand) or income (income elasticity of demand) or the price of another good (cross elasticity of demand).

Endogenous growth theory argues that the rate of economic growth is driven by endogenous factors such as technological change and investment in education resulting in improved human capital.  Rather than exogenous factors such as the saving rate or technological progress. The theory argues that there are spillovers from a knowledge based society and that investment in education will raise innovation and the economic growth rate.

Endogenous variable is a variable in an economic model that is determined in part by the model itself. For example, is a supply and demand curve the price variable is endogenous as it is determined by the position and intersection of the supply and demand curves.

Engel curve shows how quantity demand of a good will change as household income changes.

Entrepeneur the factor of production responsible for combining land, labout and capital to produce outputs of good and services. The entrepeneur is the fourth factor of production an undertakes the risk of failure.

Entrepeneurship is the act of organising factors of production to produce new goods and services including the issues of what to produce, how to produce and for whom to produce it for. It involves organising the financing and undertaking the risk of failure.

Environmental charges are fees payable for the use and pollution of natural resources. For example, payment by firms for contaminating the air or water supply.

Equation of exchange an equation that shows the identity MV = PT where M is the money supply, V the velocity of circulation, P the general price level and T the volume of transactions.

Equilibrium is a position from which in the absenmce of shocks there is no tendency to change.

Equilibrium price is the price at which supply and demand are in equality.

Equilibrium quantity is the quantity at which supply equals demand.

Equilibrium rate of unemployment the unemployment rate that exists when at the equibrium real wages rate the demand for labour is equal to the number of people willing to work at that wage. The remaining workers are voluntarily unemployed in that they are not willing to work at the equilbriumwage.

Equity  shares which represent ownership of a company. Equity holders may receive dividends and will make or lose money if the shares appreciate or depreciate in value.

ERM - the exchange rate mechanism which was part of the European Monetary System whereby certain European currencies were pegged to each other and allowed to fluctuate either side of the central rates.

Excess burden of a tax refers to the deadweight loss resulting from the imposition of a tax. It the amount by which the reduction in consumer and producer surplus exceeds the increase in government revenue from the tax.

Excess capacity when a firm or industry is producing at less than full capacity.

Exchange Equalization Account (EEA) the account held at the Bank of England which holds the gold and foreign exchange reserves of the country.

Exchange rate the price of one currency in terms of another in the foreign exchange market. It can be expressed as foreign currency per unit of domestic currency (Euro) such as $.1.25/€1 or domestic currency per (Euro) unit of foreign currency €0.8/$1.

Exchange rate index a way of monitoring the performance of a currency by indexing it. It is usually computed a foreign currency (or currencies) per unit of the domestic currency, so that a rise in the index represents an appreciation of the domestic currency while a fall represents a depreciation of the domestic currency.

Exchange rate overshooting a term used to describe the phenomenon where in the short run in response to a shock the exchange rate will either depreciate or appreciate more than is required in the long run.

Exchange rate regime the currency system under which a currency operates, it could be a floating exchange rate, fixed exchange rate or manged float of some decription.

Exogenous variable is a variable whose value is determined indpendently of the economic model of which it is a part. For example, investment may be determined exogenously.in a simple macroeconomic model.

Expansion path is a path showing points of efficient  mthods of production in the sense that quanity of inputs of capital and labor and costs are minimized as output is increased.

Expectations augmented Phillips curve is a short run Phillips curve drawn for a given level of expected inflation.

Expenditure changing policies are fiscal and monetary policy changes which are aimed at influence the level of aggregate expenditure in an economy.

Expenditure switching policies are polices such as currency devaluation and tariffs which aim to switch expenditure away from imports towards domestically produced goods.

External balance can refer to maintaing balance in the current account of the balance of payments. alternativel it could mean that any deficit or surplus in the current account is financed through capital inflows and outflows of an equivalent size.

External benefit refers to benefits to third parties resulting from either the production or consumption of a good by a firm or consumer.

External costs refers to costs to third parties resulting from either the production or consumption of a good by a firm or consumer.

External diseconomics of scale are all those factors outside of the firm that work to raise its long run average cost curve. They result in a shift upwards of the long run average cost curve.

External economies of scale are all those factors outside of the firm that work to lower its long run average cost curve. They result in a shift downwards of the long run average cost curve.

Externalities refers to benefits or costs that accrue to third parties resulting from either the production or consumption of a good by a firm or consumer. 

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