Change in demand and change in quantity demanded are key concepts in economics. The former involves shifts due to changes in factors like income or consumer preferences, whereas the latter is caused by price changes and results in movement along the demand curve.
Earnings and Profits refers to the economic capacity of a corporation to make a distribution to shareholders that is not considered a return of capital. If distributed, it constitutes a taxable dividend to the shareholder to the extent of current and accumulated earnings and profits.
An emolument refers to the income or compensation received from employment, office, or labor, including salary, fees, and other forms of compensation.
Engel's Law is an economic principle formulated by 19th-century economist Ernst Engel, stating that as a family's income increases, the proportion of income spent on food decreases, even if absolute spending on food rises.
U.S. tax form used by payers to report various types of income other than wages, salaries, and tips. Examples include interest, dividends, royalties, capital gains, and miscellaneous income.
Gross earnings refer to an employee's salary or wages before any deductions for taxes, Social Security, and employee benefit contributions are made.
An essential economic indicator that measures the capability of an average household to afford a home in a specific region. Primarily used to assess housing market conditions.
Income represents an economic benefit, encompassing money or value received over a period. It is a crucial concept in various domains like accounting, taxation, and economics.
To allocate capital to an enterprise with the objective of securing income or profit for the investor.
Investment refers to the purchase of assets such as stocks, bonds, mutual fund shares, real property, collectibles, or annuities, with the expectation of obtaining income, capital gain, or both in the future. Investment tends to be longer term and less risky than speculation.
A lifestyle business is a type of small business established primarily to support the income and personal objectives of the individual entrepreneur, aligning closely with their lifestyle and values rather than aiming for high growth or scalability.
In accounting, a loss is the amount by which the expenses of a transaction or operation exceed the income produced.
The Marginal Propensity to Save (MPS) represents the proportion of additional income that is saved rather than consumed by households. It plays a critical role in determining the economy's potential for investment and growth.
Nominal wage refers to the amount of money earned by workers in current dollar terms, without adjusting for inflation or changes in purchasing power.
Poverty is a socio-economic condition where an individual or a group lacks the financial resources and essentials for a minimum standard of living.
Real earnings refer to wages, salaries, and other forms of income adjusted for inflation, providing an accurate measure of changes in purchasing power over time.
Revenue is the total income generated by an entity from its main operating activities. It is a key indicator of financial performance and forms the base upon which profit and loss are calculated.
Revenue evaporation is a significant drop in income from the sale of a product or service, often due to fundamental changes in the market, such as technological innovations.
Sales revenue is the income generated from the sale of goods or services by a company. It is a key determinant of a company's financial health, and it is crucial for assessing growth potential and earning assessments.
The savings rate represents the portion of income that is saved rather than spent. It is an important economic indicator that reflects the propensity of individuals or economies to save.
In a graphical diagram illustrating relative consumption, the substitution slope represents the relationship of the substitution of any pair of goods with respect to one another at different prices out of a given income.
Take-home pay is the amount of wages a worker actually receives after all deductions, including taxes, have been made from their gross income.
Total Revenue is the overall income generated by a company from its business activities, typically from the sale of goods and services, before any expenses are subtracted.
A segment of the population that is attempting to move up on the socioeconomic class scale. 'Upwardly mobile' describes a trend toward higher status in terms of income, material goods, and lifestyles.
A systematic approach used by investors to receive fixed payments from their investment accounts or mutual funds on a regular basis, usually monthly or quarterly, often consisting of income, capital gains, or both.
The working poor are individuals who are economically disadvantaged despite being fully employed. They do not earn enough income to significantly improve their overall standard of living.
