Archives: Terms

Definition of Representative Firm A representative firm is a hypothetical entity used in economic models to represent the typical behavior and characteristics of firms within a particular industry or market. The concept simplifies complex economic analysis by assuming this average or typical firm mirrors the broader actions and performance of […]

### Title: Replacement Ratio Definition of Replacement Ratio The replacement ratio is a measure used to determine the adequacy of retirement income. It is defined as the percentage of a person’s pre-retirement income that is needed to be replaced by retirement income to maintain their standard of living post-retirement. Simply […]

Definition of Replacement Investment Replacement investment refers to the capital expenditures made by a business to replace old or worn-out assets that contribute to the production process. This type of investment is necessary to maintain the current level of production and to ensure that business operations remain efficient and effective. […]

Definition of Replacement Cost Replacement cost refers to the amount of money that an entity would need to spend to replace an asset with another asset of the same type and functionality at current market prices. It emphasizes the cost necessary to replace the item as of today, not the […]

Definition of Repeated Game A repeated game in economics refers to a standard game, typically in the context of game theory, that is played more than once by the same participants. Unlike a single-shot game where players interact only once, a repeated game allows players to consider the history of […]

Definition of Rentier A rentier is an individual or entity that earns income primarily through rent from property or other forms of unearned income rather than through active work or engaging in production. This term is frequently used in economic literature to describe those who derive their financial resources from […]

Definition of Rented Housing Rented housing refers to living accommodations that are leased from a landlord for a specified period of time, typically under a rental agreement or lease. The tenant pays the landlord a set amount of rent, usually monthly, in exchange for the right to use and occupy […]

Definition of Rental Payment Rental payment refers to the amount of money paid by a tenant to a landlord in exchange for the use of a property. This payment is typically made on a regular basis, such as monthly or quarterly, and covers the use of residential, commercial, or industrial […]

Definition of Rent Rent is a payment made periodically by a tenant to a landlord for the use of land, buildings, or other property. It is the primary way landlords earn income from their real estate investments. The amount of rent is generally agreed upon in a lease or rental […]

Definition of Renewable Resources Renewable resources are natural resources that can be replenished naturally with the passage of time. These resources are sustainable because they can regenerate, either through biological reproduction or other naturally recurring processes. Examples include sunlight, wind, rain, tides, waves, geothermal heat, and biomass. Unlike non-renewable resources, […]