The winner of an auction is (by definition) willing to pay more than any other bidder for a given good. […]

An insurance policy that does not share in the profits of the business that issued it.

Work directing is telling someone what to do and how to do it. There usually is much less freedom as […]

The investment in items that have not yet been sold but are intended for sale. The larger the investment, the […]

The balance in demands of both life at work and personal life.

The optimal amount of work that a worker chooses to perform for each wage that the employer may offer.

This is the capital a business uses in its day-to-day trading. It’s the difference between current assets and current liabilities. […]

The income from an investment. Calculated by taking the annual dividend or interest payment, multiplying by 100 and dividing by […]

A rate of profit equal to the opportunity cost of capital. See also: normal profits, opportunity cost of capital.

This refers to the fact that the nominal interest rate cannot be negative, thus setting a floor on the nominal […]