KEY CONCEPTS

Match each of the terms on the left with its definition on the right. Click on the term first and then click on the matching definition. As you match them correctly they will move to the bottom of the activity.

Question

rent
physical capital
present value
rate of return
financial capital
collateral
face value
coupon rate
maturity
yield
share of stock
market cap
investment in human capital
screening or signaling
on-the-job training
intellectual property rights
An asset used to secure a loan; the asset can be sold if the borrower fails to repay a loan.
All manufactured products that are used to produce goods and services.
The money required by businesses to purchase inputs for production and to run their operations.
The return to land as a factor of production. Sometimes called economic rent.
Training typically offered by employers, ranging from suggestions at work to intensive workshops and seminars.
The value of an investment (future stream of income) today. The higher the discount rate, the lower the present value today, and vice versa.
A unit of ownership in a business that entitles the shareholder to one vote at shareholder meetings and one share of any dividends paid.
A set of exclusive rights granted to a creator of an invention or creative work, allowing the owner to earn profits over a fixed period of time. The types of protection include patents, copyrights, trademarks, and industrial designs.
The use of higher education as a way to let employers know that the prospective employee is intelligent and trainable and potentially has the discipline to be a good employee.
Uses the present value formula, but subtracts costs, then finds the interest rate (discount rate) at which this investment would break even.
The market value of a firm determined by the current price per share of its stock multiplied by the total number of shares outstanding.
The annual return to a bond measured as the coupon payment as a percentage of the current price of a bond.
The value of a bond that is paid upon maturity. This value is fixed, and therefore not the same as the market value of a bond, which is influenced by changes in interest rates and risk.
A periodic fixed payment to the bondholder measured as an annual percent of the bond’s face value.
The date on which the face value of the bond must be repaid.
Investments such as education and on-the-job training that improve the productivity of labor.
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