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  1. Derived Demand:

  2. Discounting:

  3. Human Capital:

  4. Investment Decision:

  5. Loanable Funds:

  6. Loanable Funds Market:

  7. Obsolescence:

  8. Physical Capital:

  9. Present Value:

  10. Psychic Returns:

  11. Roundabout Production:

Papers

Capital, Interest, and Investment

Derived Demand:

The demand for capital goods depends on the demand for the end products that these capital goods help to produce.

Discounting:

The process of calculating the present value of payments that are to be received in the future.

Human Capital:

That part of the productive capability of individuals that has been developed thorough earlier expenditures for education, job training, and health care.

Investment Decision:

A decision a firm makes about whether to provide for the creation of new capital and, if so, how much.

Loanable Funds:

The money demanded and sup  plied for loans.

Loanable Funds Market:

The arrangements and procedures needed to carry out transactions be-tween people who want to borrow money and people who want to lend money. 

Obsolescence:

The condition of becoming less useful in production.

Physical Capital:

The factory buildings, ma chines, and equipment that make it possible for companies to produce more efficiently.

Present Value:

The value at the present time of a sum of money to be received in the future.

Psychic Returns:

Nonmonetary return from in vesting in human capital.

Roundabout Production:

Using natural re sources and labor to first produce capital which in turn is used to produce consumer goods.