return definition economics
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- DEFINITION of 'Return'. The gain or loss of a security in a particular period. The return consists of the income and the capital gains relative on an investment. It is usually quoted as a percentage.
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What is the 'Inflation-Adjusted Return' Inflation-Adjusted Return. What is the 'Inflation-Adjusted Return'. The inflation-adjusted return is the measure of return that takes into account the time period's inflation rate. Inflation-adjusted return reveals the return on an investment after removing the effects of inflation.
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Difference Between Yield and Return When yield ca be called as percentage increase on investments, return can be called as absolute dollar amount. 6. Yield usually refers to annualized number where as return refers to any period of investment, may be one year or two years. 7. Unlike return, yield is the measure of income and not capital gains.
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Principles of Economics/Utility Principles of Economics/Utility - Definition of Utility. 1  Utility is a term used by economists to describe the measurement of useful-ness that a consumer obtains from any good. 2  Example: Sally wakes up in the morning, and her mother offers her the choice of a grapefruit or cereal.
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Reflation Reflation is the act of stimulating the economy by increasing the money supply or by reducing taxes, seeking to bring the economy (specifically price level) back up to the long-term trend, following a dip in the business cycle. It is the opposite of disinflation, which seeks to return the economy back down to the long-term trend.
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THE THEORY OF DIMINISHING RETURN The law of diminishing returns is a fundamental principle of economics.[1] It plays a central role in production theory. The theory of diminishing return states that in a certain system of production, after some level the increase in the variable input does not result in additional increase in the output.
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Law of Diminishing Returns/Law of Increasing Cost: The law of diminishing returns occupies an important place in economic theory. The British classical economists particularly Malthus, and Ricardo propounded various economic theories, on its basis.
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wage 2. (Economics) (plural) economics the portion of the national income accruing to labour as earned income, as contrasted with the unearned income accruing to capital in the form of rent, interest, and dividends. 3. (often plural) recompense, return, or yield. 4. an obsolete word for pledge.
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- What is 'Tax Return'. A tax return is the tax form or forms used to report income and file income taxes with tax authorities such as the Internal Revenue Service (IRS) in the United States. Tax returns allow taxpayers to calculate their tax liability and remit payments or request refunds, as the case may be.
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Diminishing marginal returns occur when the marginal View Full Document. Diminishing marginal returns occur when the marginal gain in output diminishes as each additional unit of input is added. The term constant returns to scale describes a situation where expanding all inputs does not change the average cost of production . If a firm is experiencing decreasing returns to scale , then as the quantity of output rises, the average cost of production rises.
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- RELATED TERMS. 1  Return On Equity - ROE The amount of net income returned as a percentage of shareholders 2  ... Return The gain or loss of a security in a particular period. 3  Sector 4  1. Return On Average Equity - ROAE An adjusted version of the return on equity (ROE) measure of ...
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Product return The return policy posted at a Target store. In retail, a return is the process of a customer taking previously purchased merchandise back to the retailer, and in turn receiving a refund in the original form of payment, exchange for another item (identical or different), or a store credit.
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What's the difference between diminishing marginal returns and returns to scale? Diminishing marginal returns are an effect of increasing input while at least one production variable is kept constant, such as labor or capital, which occurs in the short run. Returns to scale are an effect of increasing input in all variables of production, which occurs in the long run.
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Expected Return Expected Return. The return on an investment as estimated by an asset pricing model. It is calculated by taking the average of the probability distribution of all possible returns. For example, a model might state that an investment has a 10% chance of a 100% return and a 90% chance of a 50% return. The expected return is calculated as: Expected Return = 0.1(1) + 0.9(0.5) = 0.55 = 55%.
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- Time-Weighted Return. The yield that the investment item itself has achieved. This is the intrinsic performance, ignoring the timing of any external cash flows. Use this return when creating or comparing against advertised performance numbers. See Yield Calculations for a discussion of the differences between ROI and TWR yields.
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- Expected Return The amount one would anticipate receiving on an investment that ... Accounting Rate of Return - ARR The amount of profit, or return, that an individual can expect ... Money-Weighted Rate Of Return A measure of the rate of return for an asset or portfolio of ...
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Rate of return The internal rate of return (IRR) (which is a variety of money-weighted rate of return) is the rate of return which makes the net present value of cash flows zero. It is a solution satisfying the following equation: = ∑ = (+) = where:
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- Sales Return. Definition: A sales return is merchandise sent back by a buyer to the seller, usually for one of the following reasons: 1  Excess quantity shipped. 2  Excess quantity ordered. 3  Defective goods.4  Goods shipped too late. 5  Product specifications are incorrect. 6  Wrong items shipped.ales Return. Definition: A sales return is merchandise sent back by a buyer to the seller, usually for one of the following reasons: 1  Excess quantity shipped. 2  Excess quantity ordered. 3  Defective goods.
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Anaerobic Bacterial Metabolism: Definition & Process In both aerobic and anaerobic respiration, the end goal is the same: oxidative phosphorylation-or, in simple terms, to generate a proton motive force that can be used to make ATP using the ATP synthase. So now we can tweak the aerobic respiration model to understand how anaerobic respiration works.
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- The term return refers to moving to the beginning of the next line in a text document. Word processors utilize two types of returns: hard and soft. In both cases, the return consists of special codes inserted into the document to cause the display screen, printer, or other output device to advance to the next line. The difference between the two types of returns is that soft returns are inserted automatically by the word processor as part of its word wrap capability.
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- Definition of relative return: The ratio between the return realized on a fund or asset, and the return realized by a designated benchmark. Relative...
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Demand Explanation and Its Impact US Economy. Definition: Demand in economics is how many goods and services are bought at various prices during a certain period of time. Demand is the consumer's need or desire to own the product or experience the service. It's constrained by the willingness and ability of the consumer to pay for the good or service at the price offered.
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What is 'Average Return' Average return is the simple mathematical average of a series of returns generated over a period of time.
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- Absolute return measures the actual percentage return of an asset over a specific period of time. Absolute return also refers to an investment strategy that attempts to achieve positive performance under varying market conditions by engaging in long and short positions.
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What bearing does the law of diminishing returns have on short-run costs? Best Answer: The law of diminishing marginal returns means that the productivity of a variable input (such as labor) declines as more is used in short-run production, holding one or more inputs fixed.
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Internal rate of return Given a collection of pairs (time, cash flow) involved in a project, the internal rate of return follows from the net present value as a function of the rate of return. A rate of return for which this function being zero is the internal rate of return.