A program designed to raise the price of an agricultural product by
limiting the acre age planted with the product.
The procedure used to calculate the present value of future income. The
present value of future income is inversely related to both the
interest rate and the amount of time that passes, before the
funds are received.
A return to investors that exceeds the opportunity cost of financial
capital.
The rate of interest in monetary terms that borrowers pay for borrowed
funds. During periods when borrowers and lenders expect
inflation, the money rate of interest exceeds the real rate of
interest.
The current worth of future income after it is discounted to reflect the
fact that revenues in the future are valued less highly than
revenues now.
Legislative action establishing a minimum price for an agricultural
product. The government pledges to purchase any surplus of the
product that cannot be sold to consumers at the support
price.
The desire of consumers for goods now rather than in the future.
The interest rate adjusted for expected inflation; it indicates the real
cost to the borrower (and yield to the lender) in terms of goods
and services. It is equal to the money rate of interest minus
the expected rate of inflation.
The use of productive effort to make tools and other capital assets,
which are then used to produce the desired consumer good.
