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IS (E1, F1)<br />1 The equilibrium of investment and savings, usually expressed as one of the curves in the 1s LM diagram. An increase in government expenditure, through its MULTIPLIER effects, will cause the IS curve to shift outwards from the origin.<br /> 2 IMPORT SUBSTITUTION.
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<strong>Totally and permanently disabled</strong> – the condition of an individual who is unable to work and earn money due to an injury or illness that is expected to continue indefinitely or eventually result in death.
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<strong>American College Testing (ACT, Inc.)</strong> – An independent not-for-profit organization that provides assessment, research, information, and program management services in the areas of educational testing and planning, career planning, and workforce development.

public service employment (J2)<br />Jobs provided by national, state, regional or local governments to reduce the amount of unemployment. Some are of short duration, a temporary expedient to cope with a recession or to reintroduce to work long-term unemployed persons whose skills have diminished or become obsolete. But the increased role of the state in many countries has expanded the number of publicly financed jobs.<br /><em>See also:</em> public works; workfare

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<strong>Default Fee subsidy</strong> – Term used to refer to a Default Fee that is paid by a third party on behalf of the borrower.

<strong>MDHE Digest</strong> – The Missouri Department of Higher Education' s monthly electronic newsletter. To sign up for this publication, visit http://www.dhe.mo.gov/mdhedigest/signup.shtml.

<strong>Award Letter</strong> – Schools send award letters to students indicating the type(s) and amount(s) of financial aid awarded, or packaged, each year. Under 34 CFR 668.16(h), the school is required to provide information about the sources and amounts of aid offered.
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<strong>Late disbursement</strong> – A disbursement made by a lender after the end of the loan period or the date on which the student ceased to be enrolled at least half time.

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<strong>SSA</strong> – Social Security Administration.
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<strong>In-school status</strong> – Occurs when a Stafford Loan borrower is enrolled in school at least half time, the grace period has not yet been used, and the borrower has not yet entered repayment. If the borrower returns to school before the grace period is fully used, the borrower continues to qualify for in-school status. Also be referred to as the “interim status.”

last-in, first-out (J2, M2)<br />1 A principle for the rotation of inventories/physical stocks. In UK NATIONAL INCOME accounting conventions it enables all items to be valued at current prices; a firm using this principle is able to finance the replacement of stocks in inflationary periods.<br /> 2 The employment policy of firms which lay off first the workers who have been recruited most recently.<br /><em>See also:</em> first-in, first-out

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<strong>Missouri Department of Higher Education (MDHE)</strong> – The Missouri state agency overseeing the state' s higher education systems and related policies and administering student aid programs, including FFELP loans and state aid programs such as the Bright Flight Scholarship. Sometimes referred to as the DHE. The agency' s website may be found at www.dhe.mo.gov.
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ambient standard (Q2)<br />A standard for air quality set in the USA by the ENVIRONMENTAL PROTECTION AGENCY.<br /><em>See also:</em> primary standard; secondary standard
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<strong>OERI</strong> – Office of Educational Research and Improvement, a division of the U.S. Department of Education. The Education Sciences Reform Act of 2002 renamed this office the Institute of Education Sciences (IES).
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price leadership (D4)<br />The pricing practice of many OLIGOPOLISTIC industries which consists of the largest firm publishing its price list ahead of its competitors who closely follow the prices already announced. This anti-competitive practice has often been used as a substitute for coLLUSION. Also known as parallel pricing.

<strong>Federal Need Analysis Methodology (FM)</strong> – The formula used to calculate the EFC (Expected Family Contribution), which is then used to determine a student' s eligibility for the federal financial aid, state aid, and/or institutional aid programs.
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core (DO)<br />A set of possible equilibrium prices. As originally devised by EDGEWORTH in Mathematical Psychics (1881), it corresponds to all PARETO-EFFICIENT positions in a twoperson, two-good economy which show improvement after trade. This concept has been applied to the study of co-operative games and is shown by the coNTRAcr CURVE in the EDGEWORTH BOX diagram. The core coincides with a set of price equilibria under PERFECf COMPETITION, i.e. GENERAL EQUILIBRIUM.<br /> core economy (PO)<br />A major economy, usually a MARKET ECONOMY, which plays a leading role in world trade.

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<strong>Subsidized loan</strong> – A loan eligible for federal interest benefits. The federal government pays the interest that accrues on subsidized Federal Stafford Loans during the student' s in-school, grace, and authorized deferment periods.
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Mill, John Stuart, 1806-73 (B3)<br />English philosopher, political theorist and major classical economist. His father, James MILL, a close friend of BENTHAM, educated him at home in a rigorous programme which started with Greek at the age of 3 and reached political economy ten years later. John learned economics by making notes on RICARDo's Principles which his father then published as Elements of Political Economy (1821). He followed his father into a clerkship in the East India Company where he was employed until 1858 and engaged in the political reform movements of the day being Member of Parliament for Westminster from 1865 to 1868. John turned his attention to a range of philosophical and political issues, writing on women's rights, representative government, logic, UTILITARIANISM and liberty. But he made an outstanding contribution to economics, being more than he modestly claimed - a clarifier of SMITH'S and RICARDO'S ideas.<br /> In his brilliant Essays on Some Unsettled Questions of Political Economy, written when he was only 23 but not published until 1844, he developed the theory of RECIPROCAL DEMAND to explain the ratios at which nations would trade if they followed the principle of coMPARATIVE ADVANTAGE. Also he introduced the idea of a demand schedule, refined SAY'S LAW and expounded one of the earliest theories of the TRADE CYCLE which he attributed to
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market power (DO)<br />A buyer's or seller's ability to influence a market price. For a seller, this power, the consequence of the INELASTICITY of the demand curve facing it, often results in high profits.<br /><em>See also:</em> concentration
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equal to the current supply price of that asset. The concept can be expressed in a diagram: net investment I will expand until it reaches h where the marginal efficiency of capital MEC is equal to the rate of interest i.<br /><em>Reference</em><br />Keynes, J.M. (1936) The General Theory of Employment, Interest and Money, Book IV, ch. 2, London: Macmillan; New York: St Martin's Press.

central bank independence (E5)<br />The conduct of MONETARY POLICY by a CENTRAL BANK, independent of governmental control through its Treasury. This has long been true of the USA with its FEDERAL RESERVE SYSTEM, and of the UK since 1997.<br /><em>See also:</em> Monetary Policy Committee

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Schultz, Theodore William, 1902- (B3) Leading US authority on HUMAN CAPITAL theory. Educated in agricultural economics at South Dakota State College and the University of Wisconsin. Since 1943, he has been professor at the University of Chicago. His NOBEL PRIZE FOR ECONOMICS, jointly awarded in 1980 with Arthur LEWIS, was for his work in agricultural economics. Although he published a major work on this topic, The Economic Organization of Agriculture (1953), his major contribution to mainstream economics has been in leading the modem human capital movement, especially with his The Economic Value of Education (1963) and Investment in Human Capital: The Role of Education and Research (1971).

job generation (J6)<br />The expansion of employment in either the public or private sector. In the former, regional and other policies are used to create jobs; in the latter, new jobs are preceded by an expansion in a market.
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