Chapter 5
Long-term agreement describing the terms under which property is rented
Lease
Time deposits that state the amount of the deposit, maturity, and rate of interest being paid
Certificates of Deposit
The amount of output (goods and services) that result from a given level of inputs (land, labor, capital, and entrepreneurship)
Productivity
Amount earned after a business subtracts its costs from its revenues
Profit
General name for a product rather than a specific brand name given by the manufacturer
Generic Brand
Funds a renter lets an owner hold in case the rent is not paid or the apartment is damaged
Security Deposit
People who have invested in a corporation and own some of its shares of stock
Stockholders
When individuals take risks to develop new products and start new businesses in order to make profits
Entrepreneurship
Desire to make money that motivates people to produce and sell goods and services
Profit Incentive
Movement to educate buyers about the purchases they make and to demand better and safer products from manufacturers
Consumerism
Fees involved in arranging for a mortgage or in transferring ownership of property
Closing Costs
Increase in value of an asset from the time it was bought to the time it was sold
Capital Gain
The use of science to develop new products and new methods for producing and distributing goods and services
Technology
Rivalry among producers or sellers of similar goods and services to win more business
Competition
Acting in accordance with moral convictions about right and wrong
Ethical Behavior
Fees paid to a lander and computed as a percentage of a loan
Points
Decrease in value of an asset from the time it was bought to the time it was sold
Capital Loss
Sacrificing one good or service to purchase or produce another
Trade-Off
Whatever is owned by individuals rather than by governemtn
Private Property
Company that takes over contracts for installment debts from stores and adds a fee for collecting the debt
Finance Company
Licensing fee, usually annual, paid to a state for the right to use a car
Registration Fee
Bonds sold by local and state governments; interest paid on the bond is not taxed by the federal government
Tax-Exempt Bonds
Value of the next best alternative given up for the alternative that was chosen
Opportunity Cost
Wire use of available resources so as to obtain the greatest benefits possible
Economic Efficiency
Credit extended to a consumer allowing the consumer to buy goods or services from a particular company and to pay for them later
Charge Account