Consumables

Consumables
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Goods used by individuals and businesses that must be replaced
regularly because they wear out or are used up. Consumables
can also be defined as the components of an end product that
are used up or permanently altered in the process of
manufacturing, such as semiconductor wafers and basic chemicals.


Investopedia Says:
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Stocks of companies that make consumables are considered to
be relative safe harbors for equity investors when the economy
shows signs of weakness. The reasoning is simple: people will
always need to purchase groceries, clothes and gas no matter
what is going on in the broad economy.

Many of the items measured in the basket of goods used to
calculate the Consumer Price Index (CPI) are consumables;
inflation in these items is closely watched because it can
lower the discretionary income people have to spend on items
such as cars, vacations and entertainment.

Baby Boomer

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A person who was born between 1946 and 1964. The baby boomer
generation makes up a substantial portion of the North American
population. Representing nearly 20% of the American public,
baby boomers have a significant impact on the economy. As a
result, baby boomers are often the focus of marketing campaigns
and business plans.


Investopedia Says:
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After the end of World War II, birth rates across the world
spiked. The explosion of new infants became known as the baby
boom. During the boom, an estimated 77 million babies were born
in the United States alone! The large increase in population
produced a substantial rise in demand for consumer goods,
stimulating the post-war economy.

Peak Oil

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A hypothetical date referring to the world's peak crude oil
production, whereby following this day, production rates will
begin to diminish. This concept is derived from geophysicist
Marion King Hubbert's "peak theory", which proclaims that oil
production follows a bell-shaped curve.


Investopedia Says:
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Because oil is a non-replenishing resource, there is a
limit to how much the world can extract and refine. Peak
oil is the day that oil production reaches a maximum and
will subsequently begin to decline until full depletion is
ultimately reached.

Staycation

What Does it Mean?

A vacation spent at or near your own home, rather than traveling to another location. People take staycations for many reasons, including but not limited to, saving money, avoiding travel, and taking advantage of and enjoying what is available in their own city.

Patronage Dividend

A dividend or distribution that a co-operative pays to its members or investors. Patronage dividends are given based on a proportion of profit made by the business. Once this amount is figured out the dividend is calculated according to how much each member has used the co-op's services. Tax rules view these profits essentially as an overcharge, which can be returned to patrons and deducted from the co-op's taxable income.

Fair Trade Investing

What Does it Mean?

Investing in companies or projects that promote fair trade with producers in developing nations. Basic fair trade philosophies call for equal pay for suppliers of raw goods and materials as well as respect for strong environmental practices and a focus on the trading relationships between advanced economies and developing nations

Prenuptial Agreement

What Does it Mean?

A type of contract created by two people before entering into marriage. This contract could outline each party's responsibilities and property rights for the duration of the marriage. More commonly, prenuptial agreements outline terms and conditions associated with dividing up financial assets and responsibilities if the marriage dissolves.

Bilateral Netting

What Does it Mean?


The process of consolidating swap agreements between two parties into a single agreement. As a result, instead of each swap agreement leading to a stream of individual payments by either party, all of the swaps are netted together so that only one net payment is being made to one party based on the flows of the combined swaps.

Natural Monopoly

A type of monopoly that exists as a result of the high fixed or start-up costs of operating a business in a particular industry. Because it is economically sensible to have certain natural monopolies, governments often regulate those in operation, ensuring that consumers get a fair deal.

Minimum Wage

What Does it Mean?
The minimum amount of compensation an employee must receive for performing labor. Minimum wages are typically established by contract or legislation by the government. As such, it is illegal to pay an employee less than the minimum wage.


The minimum amount of compensation an employee must receive for performing labor. Minimum wages are typically established by contract or legislation by the government. As such, it is illegal to pay an employee less than the minimum wage.
Investopedia Says... The minimum wage attempts to protect employees from exploitation, allowing them to afford the basic necessities of life. The minimum wage rate fluctuates between countries, and sometimes between states or provinces.

Minimum wages have drawn strong criticism from many economists, since it establishes a price floor on wages. Price floors can lead to a dead weight loss in the economy, which means that inefficiencies exist. In this case, the minimum wage might force companies to hire fewer employees, thus increasing unemployment.

As of July 2008, the U.S. federal minimum wage rate was $6.55/hour. However, in states where the state minimum wage is higher than the U.S. federal minimum wage, workers must be paid the higher minimum wage.