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political economy (A1)<br />The term used for economics in the eighteenth and nineteenth centuries and revived in recent years to reflect a policy-oriented view of the subject. Liberal political economy was founded by Adam SMITH and was concerned then with the art of managing public finances and the advising of statesmen on revenue maximization. scHUMPETER, in his History of Economic Analysis, defined it as 'an exposition of a comprehensive set of economic policies that its author advocates on the strength of certain unifying normative principles, such as the principles of economic liberalism [or] Socialism'. ROBBINS asserted that political economy is concerned with policy prescriptions. Today, this applied view of economics rejects the world of PERFEcr coMPETITION, criticizes the uncertainties of free enterprise and makes use of PUBLIC CHOICE theory.<br /><em>See also:</em> Post-Keynesians <br /><em>Reference</em><br />Lange, 0. (1963 and 1971) Political Economy, 2 vols, New York and Oxford: Pergamon.

South African Customs Union (FO)<br />A customs union of Botswana, Lesotho, Swaziland and the Republic of South Africa set up in 1969.
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coupon (E4, G1)<br />1 Originally the warrant which had to be presented to obtain interest on a bond.<br /> 2 The nominal rate of interest, e.g. ?5 per ?100 of nominal stock. It is to be distinguished from the bond's YIELD, which will be higher than the coupon if the market price of the bond is lower than its nominal price, and vice versa.
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<strong>Deferment</strong> – 1) A period of time during repayment in which the borrower, upon meeting certain conditions, is not required to make loan principal payments. For a subsidized Federal Stafford Loan, the loan is also eligible for a federal interest subsidy during periods of deferment. For an unsubsidized Federal Stafford, PLUS, or Grad PLUS Loan, the borrower is responsible for the interest during periods of deferment. In this case, the interest may either be paid or may be accrued and capitalized onto the principal amount. 2) For the Bright Flight program, a student may be eligible for a deferment of eligibility for up to 27 continuous months for participating in a student exchange program, service to a non-profit organization, service or active duty in the armed forces, and for medical reasons.

Premium Savings Bond (E2)<br />A form of national savings introduced in the UK in 1956: there are monthly prizes of up to ?1 million instead of the payment of interest to all bondholders. They are redeemable on demand.

<strong>Estimated Financial Assistance/Aid (EFA)</strong> – A school' s estimation of the amount of financial aid for which the student is eligible during any given enrollment period. EFA may include loan, grant, or scholarship aid from federal, state, institutional, or other sources.

hierarchical decomposition principle (L2)<br />An analysis of an organization into a vertical slice of operating activities and a horizontal slice of strategic planning corresponding to the lower and higher parts of the hierarchy.<br /><em>Reference</em><br />Simon, H.A. (1962) 'The architecture of complexity', Proceedings of the American Philosophical Society 106 (December): 467-82.<br /> - (1973) 'Applying information technology to organization design', Public Adminstration Review 33 (May-June): 268-78.

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industry (LO)<br />A group of firms producing the same principal product. In a broad classification of industries, all industrial activity of an economy can be divided into only ten or a hundred industries but narrower classifications make possible a division into as many as a thousand or more. Types of industry are contrasted as HEAVY or LIGHT, mature or high-tech, smokestack or sunrise.<br /><em>See also:</em> Standard Industrial Classification; three-digit industry; two-digit industry

<strong>Unsubsidized loan</strong> – A loan that is not based on need and is NOT eligible for federal interest benefits. The borrower is responsible for the interest that accrues on any unsubsidized loan, including unsubsidized Federal Stafford Loans, Federal PLUS Loans, and Graduate PLUS Loans.
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aggregate concentration (Ll)<br />The coNCENTRATION of the economic activity of a nation or an industry in the hands of a few giant firms. Also called absolute concentration.<br /><em>See also:</em> concentration ratio; relative concentration

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production quota (D2)<br />The limit to the permitted output of a particular product.

<strong>Enterprise</strong> – The MDHE' s system for guaranteeing and servicing loans. Enterprise is owned and developed by American Student Assistance (ASA), the MDHE' s servicer. Also referred to as MODEL Enterprise.

<strong>Alternative loan</strong> – A non federal student loan, also referred to as “private loan.” Alternative loans are offered to students and/or parents by many, many lenders, secondary markets, and other private entities. The loan type code used in CommonLine to identify an alternative loan is AL.

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<strong>Expected Family Contribution (EFC)</strong> – The amount the student or student' s family is expected to pay toward the student' s cost of attendance as a result of the Federal Need Analysis Methodology.
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Beveridge, William Henry, 1879-1963 (B3)<br />In many senses, the founder of the UK WELFARE STATE. After an education at Balliol College, Oxford, he was a law Fellow at University College, Oxford from 1902 to 1909, as well as Sub-warden of Toynbee Hall, London, from 1903 to 1905, where he investigated casual labour and unemployment in the London docks. As Director of Labour Exchanges at the UK Board of Trade in 1909-15 he created a national system of employment exchanges. In 1919 as Permanent Secretary of the Ministry of Food he devised a national food rationing scheme. From 1919 to 1937 as Director of the London School of Economics he expanded the range of its activities, attracting scholars such as HAYEK and HICKS, as well as encouraging empirical studies. Subsequently he was master of University College, Oxford, from 1937 to 1944, and chairman of the committee which drew up the Beveridge Report on social security in 1942, which was expanded into the celebrated Full Employment in a Free Society (1944), a report which laid the intellectual foundations for many post-war UK welfare policies.<br /> <br /><em>Reference</em><br />Harris, J. (1977) William Beveridge: a Biography, Oxford: Clarendon Press. Williams, K. and Williams, J. (eds) (1987) A Beveridge Reader, London: Unwin Hyman.
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prime cost (DO)<br />The direct cost of running a business, particularly labour, energy and raw material COSts; VARIABLE COSTS. A term USed by MARSHALL.<br /><em>See also:</em> supplementary cost
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<strong>Cost of Attendance (COA)</strong> – An estimate of a student' s total education-related expenses for an enrollment period.
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high-consumption society (PO, P1)<br />A country with an AVERAGE PROPENSITY TO coNSUME approaching one. It has a low rate of household saving and high level of consumer debt. The USA is cited as a major example.

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