Effects indirectly related to a course of action whose influence will only be seen or felt later in time.

In a credit arrangement, last month's balance.

Sign up to receive TEACHING OPPORTUNITY the CEE K-12 Educator Newsletter

The belief that people should be taxed according to their ability to pay, regardless of the benefits they receive. The U.S. individual income tax is based on this principle.

The ability to produce more units of a good or service than some other producer, using the same quantity of resources.

Total explicit costs are greater than total explicit revenue which results in a loss.

Total revenue less total costs except for the opportunity cost of capital.

Expectations about inflation or other economic events.

A method of calculating interest on a loan, based on the assumption that the borrower holds the original principal for the entire loan period.

A method of calculating finance charges by basing them on the opening balance owed after subtracting the payments made during the month.