Archive for the ‘Daily Definition’ Category

Conscious Consumerism is…

Friday, July 8th, 2011

Conscious consumerism is being aware of where your money really ends up when you spend it. It’s the practice of purchasing goods and services that the consumer (you) considers to be produced in an ethical manner.

Money leaves a social and environmental footprint wherever it goes. So if a company makes a habit of spilling oil in the ocean or refusing to give its employees benefits, you’re unknowingly saying “yes!” to all that by purchasing their stuff.

On the flip-side, conscious consumers are aware of all this and avoid products that do harm to or exploit humans, animals or the natural environment. They not only favor ethical products but also boycott merchandise and companies that act unscrupulously.

An Oligopoly is…

Thursday, June 30th, 2011

An oligopoly is a situation in which a small group of organizations dominates a particular market. The actions of these individual “oligopolists” affect one another and can collectively influence prices and production in the marketplace.

Oligopolies can exist both intentionally or unintentionally. For example, Apple and Dell computers dominate the market for laptops because they tend to sell more products than their competitors. But they’re not working together, so the dominance is unintentional. On the other hand, OPEC member countries have joined together and formed a cartel to intentionally dominate the oil market and keep prices high.

Core Inflation is…

Thursday, June 30th, 2011

Core inflation = full (a.k.a. headline) inflation minus inflation in energy and food prices. It’s the number that monetary policy makers (like the Fed) look at when they are monitoring inflation.

Why would they ignore inflation in the two things that we all spend so much money on? The answer is that food and energy prices change all the time, in unpredictable ways. A war in the Middle East can cause oil prices to spike. A drought in the Midwest can devastate crops – reducing supply and increasing prices. But the Fed believes these are temporary events and temporary price changes. So they just ignore food and energy, and focus on the more lasting price changes of other things.

Capitalism is…

Thursday, June 30th, 2011

Capitalism is an economic system based on profit and private property. Through free exchange, people and companies are able to trade goods pretty much as they please. In a capitalistic marketplace, nearly everything is privately owned by profit-seeking entities rather than a government (such as with socialism). Capitalism is practiced in the United States and many other countries.

The CME is…

Thursday, June 30th, 2011

The CME is short for the Chicago Mercantile Exchange. The CME is one of the largest derivatives markets in the world, offering a wide range of options, futures, and other products.

Greenwashing is…

Thursday, June 30th, 2011

Greenwashing is when corporations falsely advertise their products or activities as eco-friendly. Companies create the perception that they are mindful of the environment in their policies and products. But… they’re not.

White Collar is…

Thursday, June 30th, 2011

White collar is a term used to describe a particular kind of job. Basically any work that’s not manual labor (i.e. work that’s harder on the brain than on the body) can be described as a “white collar” occupation.

Think research analysts, administrative assistants, and nurses, versus the local plumber or a high school janitor. (Those would be considered blue or pink collar occupations.)

Socialism is…

Thursday, June 16th, 2011

Socialism is a system where everything is communally owned, meaning that it’s shared by everyone. In a socialist community, people share all property, all business, and all products, instead of each person owning their own things. In socialism, the objective is for everyone in society to be equal, so no one ends up any richer or poorer than anyone else.

Nationalization is…

Friday, June 3rd, 2011

Nationalization is when private property or industry is taken over by the government. Countries usually choose to nationalize portions of a specific industry, and they do it for different reasons.

If an oil-producing country’s oil drilling operations are owned mostly by foreigners, for example, the government might choose to nationalize all drilling operations to get rid of the excessive foreign influence.

Sometimes countries with struggling industries choose to nationalize certain sectors of the economy so that government resources can be used to help those industries develop. When the U.S. government spent money bailing out big banks during the economic crisis, some people thought it was a step toward nationalizing the financial sector.

The Great British Pound (GBP) is…

Friday, June 3rd, 2011

The Great British pound (£) is the official currency of the Great Britain. The currency’s official name is “the pound sterling,” but everyone calls it the pound.