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Capacity utilization rate
The ratio of the rate of production at which an establishment produces to the potential production of these establishments

Capital account
The account in which all the investments in fixed assets by the owners of a business are recorded

Capital depreciation
The wear and tear of a capital asset. Also called as depreciation, is measured by the reduction in value of the asset.

Capital good
Any goods that are used in the process of production.

Capital market
A market where buying an selling of financial goods takes place.

Cardinal utility
A measurable amount of satisfaction derived by consumption of a good or service.

An association of business firms, which in agreement try to create either a monopoly or control the market forces.

Caveat emptor
Latin terminology for Buyer Beware

Caveat venditor
Latin terminology for Sller Beware

Central planning
A Central Government system where allocation, production and control of economic resources are planned

Ceteris paribus
other things remaining the same

Classical economics
A school of economic thought originated by Adam Smith through his work 'Wealth of Nations'. It is based on an idea that free Competition will ensure full utilization of resources and maintain full employment.

Closed economy
An economy that does not do internation trade nor invites any.

Coase theorem
Propounded by Ronald Coase, it states that pollution can be controlled by voluntary negotiations among the affected parties.

Collective bargaining
The process of negotiation that takes place between the representatives of the Trade Union and the respective Organization

A secret agreement between companies which are competitors so as to form a cartel and control the market.

A multi lateral organization with a membership of 54 countries, to act as a force of peace, democracy, equality, and good governance.

Comparative advantage
When a firm can produce the same quantity of output using the same resources at a lower cost than others.

Conglomerate merger
A merger that takes place between two firms that run different business in different markets.


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