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pounded until the CLASSICAL ECONOMISTS made it a central feature of their theory. Both SMITH and RICARDO attempted to relate long-term equilibrium value to the labour input of production but MARX is best known as an adherent of this view. Labour theories have a variety of forms. Smith's three versions were labour quantity (the value of a good is proportional to the amount of labour needed to make it), labour command (the value of a good is proportional to the amount of labour of others obtained in exchange) and labour disutility theory (value is proportional to the toil and trouble incurred in production). Neoclassical economists firmly dismissed such theories in favour of a MARGINAL UTILITY approach. JEVONS Stated that once labour is expended in production it no longer enters into value but is lost and gone for ever.<br /> <br /><em>Reference</em><br />Meek,R. (1973)Studies in the Labour Theory of Value, London: Allen & Unwin.
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activity rate (J2)<br />Official UK term for the LABOUR FORCE PARTICIPATION RATE. If the female population is 100 million and the female labour force is 55 million, the female activity rate will be 55 per cent.
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<strong>FAMS</strong> – Financial Aid Management System, software used by the school to administer all aspects and types of financial aid. FAMS products include Datatel' s product Colleague, PeopleSoft, SCT' s product Banner, the College Board' s product PowerFAIDS, and many others.
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one hundred per cent reserve banking (G2)<br />A form of banking which maintains a bank's total volume of deposits (liabilities) equal to reserve assets. Under this system, a bank is unable to make advances through credit creation. Although such banking can resist RUNS oN A BANK, it makes little profit through not holding illiquid bills, bonds and loans.<br /><em>See also:</em> Fisher; fractional reserve banking

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Cassel, Karl Gustav, 1866-1945 (B3) After studying mathematics at Uppsala University, Sweden, he became a professor of economics at Stockholm University in 1902. He was a founder of modern Swedish economics, especially noted for Theory of Social Economy (originally published in 1918) and monetary writings. He rejected both labour and MARGINAL UTILITY theories of value in favour of a price theory which he also applied to his study of the RATE OF INTEREST. He relied on the QUANTITY THEORY oF MONEY in his monetary economics and was anti-Keynesian. His pupils included OHLIN and MYRDAL.<br /><em>Reference</em><br />Mitchell, W.C. (1969) Types of Economic Theory, Vol. 2, ch. 16, New York: Augustus M. Kelley.

<strong>Payment period</strong> – The basis on which a school must schedule and deliver disbursements for a particular loan period. A payment period is determined by the structure of the school' s academic program.

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seignorage (E4)<br />1 The levy charged by states for converting precious metals into coins (the UK abolished that charge in 1666).<br /> 2 The net earnings received by a country with a RESERVE CURRENCY from the assets it acquires through other countries holding its currency.<br /> 3 The revenue, net of the cost of production, gained from issuing banknotes or another form of currency. Seignorage is a major source of government revenue in high-inflation economies as a government can finance its deficits by creating more money.<br /><em>See also:</em> free banking
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<strong>Due diligence</strong> – The collection procedures required to attempt to satisfactorily resolve a delinquency and prevent a default in accordance with federal regulations.
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inheritance tax (H2)<br />A tax on WEALTH transferred after the decease of an individual person. This tax aims to raise revenue and bring about an intergenerational shift in wealth distribution. Inheritance taxes have long had their advocates, e.g. John Stuart MILL, as a major method of reducing INEQUALITY in society.
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