Legal Tender Money

Legal Tender Money

Legal Tender, money which, according to law, must be accepted in final payment of a debt or discharge of a business obligation. In Britain coin is legal tender only in limited amounts; copper to coins, silver to; bank-notes are unlimited legal tender. Cheques (bank money) and promissory notes are not legal tender.

Liberalism, Economic, the philosophy which advocates the largest possible use of the forces of competition as a means of co-ordinating human efforts and achieving economic ends, and thus rejects most types of coercion and interference in economic life by interest groups or government s. Economic liberalism does not deny that the state has a role to play in economic affairs, but sees it as helping the competitive process to be as effective as possible and supplementing it where only collective action can provide essential services not supplied through the market. Economic liberalism is often confused with the common misunderstanding of laissez-faire as meaning the complete absence of government al action. Liberalism is dynamic in aim, emphasizes self-interest as the engine of effort in the general interest, the price mechanism and a competitive framework as the means by which rapid economic progress and maximum human satisfaction can be obtained.

Licensing, a method of controlling or restricting or recording the number of suppliers of a product or service, the amount produced or sold, etc. Its economic effect depends on how restrictive it is. If it is confined to recording (i.e. for the purpose of taxation, as with dog licences) it has little effect on supply and price (although, for example, if the cost of a dog licence were high it might discourage people from owning dogs). It is designed to keep down the number of licences, as with public houses, its effect is to raise the value of the properties that are licensed by making them scarcer than they otherwise would be. Restrictive licensing is an effort to replace the market mechanism, which allocates supplies by price, by a method of allocation based on criteria other than market price and consumer choice. Thus if it is considered the consumers should not be allowed to decide the use of building labour and materials, building licensing can substitute other criteria or 'priorities'.

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Since then his writings have in turn been increasingly reinterpreted as a special case both by some followers and by some economists who had not wholly accepted his writings. The content of economics is in a state of change, and this consumeraffairs.org.uk site is therefore not a final statement of economic doctrine.

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