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<strong>Institutional aid</strong> – Financial aid programs created, funded, and administered by any given postsecondary institution.

income elasticity of demand (DO)<br />The ratio of the percentage increase in demand for a good or service to a percentage increase in income. Thus, if an increase in income of 4 per cent is associated with an increase in demand for food of 2 per cent, the income elasticity will be 0.5. Income elasticities for foodstuffs and agricultural raw materials are often less than one, with the consequence that the Income divergence in economic prosperity between primary producing countries and industrialized countries increases in periods of world economic growth. Income elasticities are positive for NORMAL GooDs and negative for INFERIOR GOODS. In the figure, A is a luxury good as more of it is demanded at higher incomes, B is a normal good and C is an inferior good as less of it is demanded at higher incomes.<br /><em>See also:</em> Engel's law; price elasticity of demand
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labour market intermittency (J2) Interrupting a career before retirement as happens with many female workers who take time off to rear children.

income multiple (G2)<br />The amount of a loan divided by the borrower's annual income. In times of inflation multiples rise helping to sustain rising property prices. UK house loans as a multiple of incomes were on average 1.67 in 1980 and rose to 6.0 in 2000.

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current ratio (M2)<br />The ratio of CURRENT ASSETS to CURRENT LIABILITIES of a firm. Also known as a working capital ratio or 2:1 ratio following the rule of thumb that assets should be twice liabilities, unless the seasonal or speculative nature of the firm requires more working capitaL This is the principal measure of the LIQUIDITY of a firm.

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<strong>Half Time (HT)</strong> – An enrollment status indicating the student is carrying an academic workload, as determined by the school, that is more than half time but less than full time. For the Marguerite Ross Barnett scholarship, half-time enrollment is defined as 6-11 credit hours.
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<strong>Application Send File</strong> – The CommonLine file type used to send application information to guarantors and/or other entities so that FFEL Program loans may be guaranteed and disbursed.

access differential (J3)<br />A difference in access to goods and services and to their producers. This addition to monetary rewards was used in the SOVIET-TYPE ECONOMY, SO higher ranking officials could use shops, schools and clinics not open to the rest of society.
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gold reserves (E5)<br />Gold holdings of a CENTRAL BANK used only for transactions with other central banks. The amount of gold reserves in the world at any time is equal to the amount produced less the private demand for jewellery, dentistry and hoarding, together with past accumulations.<br /><em>See also:</em> gold bullion standard
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high employment surplus (H6)<br />An estimate of the excess of tax revenues over government expenditures at a FULLEMPLOYMENT level of NATIONAL INCOME. This is used as a yardstick of a government's FISCAL STANCE.<br /><em>See also:</em> structural deficit
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industrial union (J5)<br />A TRADE (LABOR) UNION which is the sole organizer of labour in a particular industry. Germany has sixteen industrial unions to organize its labour force. Many have suggested a similar structure for UK unions (who had recommended industrial unionism to the Federal Republic of West Germany) but have stumbled on the major obstacle to such change - the dismemberment of powerful GENERAL UNIONS.<br /><em>See also:</em> craft union; enterprise union

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Mises, Ludwig Edler von, 1881-1973 (B3)<br />A leading Viennese economist whose influential seminar conducted when he was professor of the University of Vienna (1913-36) included many famous economists, such as MACHLUP and HAYEK. He taught at the Graduate Institute of International Studies, Geneva, from 1934 to 1940 and was professor of economics at New York University from 1945 to 1969. As an economic liberal, he was a leading member of the AUSTRIAN SCHOOL, which seemed to be eclipsed by KEYNESIANISM until its powerful revival in the 1970s. Like his Austrian contemporaries, Mises began with UTILITY theory and a study of BUSINESS CYCLES but after the First World War attacked the nature of allocation in socialist societies and then investigated economic philosophy in great detaiL In his The Theory of Money and Credit (1912) he was one of the first economists to integrate MICROECONOMICS and MACROECONOMICS by founding his theory of money and credit on the individualism of Austrian microeconomics. He also used a cash balance and EXPECTATIONS APPROACH to money. His novel approach to the trade cycle based on the SPECIE-FLOW MECHANISM with bank credit being crucial to the generation of booms and slumps was to be a major inspiration to HAYEK.<br /> <br /><em>Reference</em><br />Butler, E. (1988) Ludwig von Mises, Aldershot: Gower.<br /> von Mises, L.E. (1912) The Theory of Money and Credit, trans. H. E. Batson, London: Jonathan Cape.<br /> - (1937) Socialism: An Economic and Sociological Analysis, 2nd edn, trans. J Kahane, New York: Macmillan.<br /> - (1949) Human Action, A Treatise on Economics, New Haven, CT: Yale University Press.<br /> - (1962) The Ultimate Foundation of Economic Science, Princeton, NJ: Van Nostrand.<br /> Moss, L.S. (ed. ) (1976) The Economics of Ludwig von Mises, Kansas City, KS: Sheed and Ward.

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<strong>Electronic Access Conference (EAC)</strong> – An annual conference sponsored by the U.S. Department of Education.
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revenue seeking (Fl)<br />Attempting to gain part of the revenue from protective tariffs.<br /> <br /><em>Reference</em><br />Bhagwati, J.N. and Srinivasan, T.N. (1980)<br />'Revenue-seeking: a generalisation of the theory of tariffs', Journal of Political Economy 88: 1069-87.

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rates (H7)<br />A tax on non-agricultural property long used in the UK to finance local government expenditure. Periodically, property was revalued on the basis of the expected rental income from property of that type to calculate its rateable value. Each local authority decided, knowing the total rateable value of all properties in its area, what rate in the pound must be levied to obtain a desired level of revenue. Each property owner paid an amount equal to the rateable value of the property times the rate in the pound. As such local taxation has long been condemned for being full of anomalies, many proposals for reforming it have been made. In 1989 in Scotland and in 1990 in England and Wales, the domestic rate was replaced by the COMMUNITY CHARGE (nicknamed 'the poll tax'); in 1990, the UNIFORM BUSINESS RATE replaced business rates.<br /><em>Reference</em><br />Foster, C.D., Jackman, R.A. and Perlman, M. (1980) Local Government Finance in a Unitary State, London: Allen & Unwin.<br /> Layfield Committee (1976) Local Govern-

National Labor Relations Board (J5)<br />US federal board created in 1933 and subsequently authorized by the WAGNER ACT. It attempts to prevent and remedy unfair labour practices, to promote coLLECTIVE BARGArNrNG by conducting secret ballots to establish whether a labour organization can represent a group of workers.

<strong>Verification</strong> – A school' s procedure for checking the accuracy of information reported by students on their FAFSAs.

objectives of firms (L2)<br />What a FIRM has as its a1m or target. PROFIT MAXIMIZATION is assumed in many theories of the firm to be the central aim of a firm but research since the 1930s has noted that managers have many other objectives, partly because they are not shareholders directly rewarded in proportion to a firm's profitability. Objectives replacing profit maximization include sales maximization, maintaining (or increasing) a market share and achieving a target rate of return on capital employed. See also: managerial models of the firm; theory of the firm

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