Collins dictonary of
Economics
fourth edition
Christopher Pass, Bryan Lowes & Leslie Davies William Collins’ dream of knowledge for all began with the publication of his first book in 1819. A self-educated mill worker, he not only enriched millions of lives, but also founded a flourishing publishing house. Today, staying true to this spirit, Collins books are packed with inspiration, innovation, and practical expertise. They place you at the centre of a world of possibility and give you exactly what you need to explore it.
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Contents This dictionary contains material especially suitable for students reading ‘foundation’ economics courses at polytechnics and universities, and for students preparing for advanced school economics examinations. The dictionary will be useful also to ‘A’ and degree-level students reading economics as part of broader-based business studies, commerce or social science courses as well as to students pursuing professional qualifications in the accountancy and banking areas. Finally, it is expected that the dictionary will be of interest to general readers of the economic and financial press. The dictionary provides a comprehensive coverage of mainstream economic terms, focusing in particular on theoretical concepts and principles and their practical applications. Key economic terms are given special prominence, including, where appropriate, diagrammatic illustrations. In addition, the dictionary includes various business and commercial terms that are relevant to an understanding of economic analysis and applications. It is, of course, difficult to draw a precise dividing line between economic and economics-related material and other subject matter. Accordingly, readers are recommended to consult other volumes in this series, in particular the Collins Dictionary of Business, should they fail to find a particular entry in this dictionary. In the interests of brevity, we have kept institutional minutiae and description, as well as historical preamble, to a minimum. To cater for a wide-ranging readership with varying degrees of knowledge requirements, dictionary entries have been structured, where appropriate, so as to provide, firstly, a basic definition and explanation of a particular concept, then leading on through cross-references to related terms and more advanced refinements of the original concept. Cross-references are denoted both in the text and at the end of entries by reproducing the keywords in small capital letters. We should to thank Edwin Moore and Clare Crawford for their excellent work in preparing the manuscript for publication. Particular thanks are due to Sylvia Ashdown, Chris Barkby and Sylvia Bentley for their patience and efficiency in typing the manuscript.
Christopher Pass, Bryan Lowes
ability-to-pay principle of taxation the principle that TAXATION should be based on the financial standing of the individual. Thus, persons with high income are more readily placed to pay large amounts of tax than people on low incomes. In practice, the ability-to-pay approach has been adopted by most countries as the basis of their taxation systems (see PROGRESSIVE TAXATION). Unlike the BENEFITS-RECEIVED PRINCIPLE OF TAXATION, the ability-to-pay approach is compatible
