20 terms were found starting with the letter i.

Imperfect Competition

Occurs when the actions of at least one buyer or seller have an effect on the market price. The opposite of imperfect competition is perfect competition.

Imperfect Information

Occurs when at least one buyer does not know the true benefits associated with the consumption of a good or service, or when at least one seller does not know the true costs associated with the production of a good or service. The opposite of imperfect information is perfect information.

Import License

A document required and issued by a government authorizing the importation of goods into that country.

Import Quota

A limit on the maximum quantity of a good that may be imported into a particular country.

Income Elasticity of Demand

The percentage change in the consumption of some good or service in response to a 1% increase in the consumer’s income.

Increasing Returns to Scale

A situation in which a 1% increase in all inputs into production leads to more than a 1% increase in output.

Increasing Returns to Size

A situation in which an increase in output leads to a decrease in the average total cost of production.

Induced Innovation

The development and adoption of technologies in response to changes in relative prices of factors of production. Refers specifically to the tendency to develop and adopt technologies that reduce the usage of factors that are becoming relatively more expensive and increase the usage of factors that are becoming relatively less expensive.

Inferior Good

A good whose income elasticity of demand is negative, so that an increase in income leads to a decrease in consumption of that good.

Infrastructure

The capital embodied in transportation (roads, railways, waterways, etc.), communications (telephones, radios, televisions, etc.), electricity, water supplies, sanitation, and financial institutions.

Input into Production

A resource (for example, capital, labor or land) used to produce a good or service. Same as factor of production.

In-Quota Tariff

For a country with a tariff rate quota (TRQ) system for a particular commodity, the tariff applied on imports within the quota. The tariff on imports over the quota is referred to as the over-quota tariff.

Integrated Pest Management (IPM)

A package of alternatives to conventional pest control methods, which often involve frequent and extensive use of pesticides. The package consists of one or more of the following: (1) growing a healthy, genetically varied crop (cultural control); (2) use of pest-resistant crop varieties (host plant resistance); (3) use of natural enemies to crop pests (biological control); and (4) occasional use of pesticides as a last resort (chemical control).

Inter-American Development Bank (IADB, IDB)

A regional development bank founded in 1959 to promote economic and social development in Latin America and the Caribbean through loans and technical assistance. Currently has 46 member countries.

Internalization Advantage

A firm’s interest in maintaining control of a product or production process as one of its own.

International Monetary Fund (IMF)

An international organization of 184 member countries, established to promote international monetary cooperation, exchange stability, and orderly exchange arrangements; to foster economic growth and high levels of employment; and to provide temporary financial assistance to countries to help ease balance of payments adjustment. The IMF has often provided short-term loans and financial crisis management to developing countries in recent years.

International Poverty Line

An income of less than $1 per person per day in 1985 purchasing power parity (PPP) adjusted U.S. dollars. Purchasing power parity adjusts official exchange rates for cost-of-living differences between the U.S. and the country in question. In today’s dollars, the international poverty line is about $1.50.

Intra-Industry Trade

A two-way exchange of goods between countries in which neither country seems to have a comparative cost advantage in the industry as a whole.

Investment

In the case of physical capital, expenditures on new machinery, equipment, or other capital goods. In the case of human capital, time, effort and money spent accumulating new knowledge, skills, abilities or capacities.

Invisible Hand

When households and firms acting in their own self-interest in competitive markets also tend to further the interests of society at large.