Here are Economics Terms beginning with T.

Please  note these economics dictionary definitions
are all copyright of BusinessEconomics.com and  no one is allowed to use them without express written confirmation from BusinessEconomics.com.

Copyright BusinessEconomics.com

Tacit Collusion occurs when firms seem to collude without any formal agreement in place, in that they do not engage in price wars, excessive advertising, keep industry output lower and generally reduce the amount of competition they get engaged in with other firms in the indusstry.

Takeover occurs when a company takes over a majority ownership stake in another company. Takeovers can be friendly or hostile.

Target real wage theory argues that Trade Unions seek a target rate for real wage growth regardless of the actual economic growth rate.

Tariff is a tax which is applied to imports but not to domestically produced goods.. A tariff  has  the  effect  of  rassing  the price of imported goods for the domestic consumer.

Tariff escalation occurs when tariff rates applied to imports increase with the stage of the production process. As such, raw materials will have low rates of tariffs, intermediate goods higher tariff rates and finshed products the highest tariffs.

Tax allowance is the amount of income that can can be earnt before income tax becomes payable.

Tax avoidance is a legal means of managing an individual or company's tax affairs so as to reduce the individual or company's tax payments.

Tax evasion is an illegal acticity by which an individual or company attempts to limit their tax liability by failing to declare certain incomes or artifically inflating their costs.

Taylor rule is a monetary policy rule named after the economist  John Taylor. The rule stipulates how much a  central bank should change the nominal interest rate in response to changes in inflation and real output. The rule was designed to promote price stability and full employment by reducing policy uncertainty and increasing central bank credibility.

Technological unemployment is unemployment that is causd by the introduction of new labor saving technology capital equipment such as car producing robots and automated telling machines reducing the need for bank employees.

Terms of trade is an index of the price of exports divided by an index of the price of imports. A rise in the terms of trade means that the price of exports has risen relative to the price of imports and this means less exports have to be given to get a given amount of imports.

Third degree price discrimination occurs when a firm charges different groups of consumers different prices for reasons not associated with differences in costs. Examples include adults being charged more for cinema tickets, peak hour travellers being charged more than off-peak travellers.

Tie in sales are when a customer can only purchase one good provided they purchase a second good.

Time deposits are deposits that require the depositor to give notice of a withdrawal.

Time series data are economic data covering a period of time with the observations usually at evenly spaced periods of time. Examples include the quarterly Gross Domestic Product, the unemployment rate monthly and the daily exchange rate series.

Total consumer surplus is the difference between maximum consumers would be willing to pay for a dood less the total sonsumer expenditure on the good.

Total physical product is the total ouput of a good over a given period of time.

Total surplus is the total of consumer surplus plus the total of producer surplus.

Total producer surplus is the total amount received by producers less the toal amount they would have been willing to supply the sales at.

Total revenue is the value of total sales and is normally calculated as the price per unit times the quantity of units sold.

Total social surplus is the total benefit to society from consumption of a good or service less the total cost to society made up of private and social costs.

Total utility is the total satisfaction from consumption of a good or a bundle of goods.

Tradeable goods are exports plus import competing goods.

Trade creation gains are the gains associated with the increased trade resulting from the formation of a customs union.

Trade cycle refers to the fluctuations in economic activity around the long term trend associated with fluctuations in international trade.

Trade diversion losses refer to the losses associated with diverting the original volume of  pre union trade from a low cost trading partner to a higher cost trading partner resulting from the formation of a customs union.

Traditional theory of the firm refers to the analysis of firm behaviour under different market structures assuming that firms will maxmise their profits.

Tragedy of the commons refers to the depletion of a shared resource by individuals, acting independently and rationally according to each inividual's self-interest even though they understand that the depletion of the common resource is contrary to their long-term best interest.

Transfer payment is the transfer of money from one economic agent to another. For example, social security payments such as unemployment benefit and state pensions involve a transfer from tax payers to the recipients.

Treasury Bill  a short term debt instrument issued by the Treasury of 12 or less months till maturity. Treasury bills are issued at a discount to their face value.

Treasury Bond  a long-term debt instrument issued by the Treasury which makes fixed coupon payments to the holder and pays the principal back upon maturity. In the US the bond is usually 10 years or over with 2–9 year bonds being called Treasury Notes.

Copyright BusinessEconomics.com