Glossary Terms:

Why cities provide tax breaks even when they are strapped for revenue

Glossary terms from:
http://www.econedlink.org/e273


Benefit

Monetary or non-monetary gain received because of an action taken or a decision made.

Budget

A spending-and-savings plan, based on estimated income and expenses for an individual or an organization, covering a specific time period.

Business

Any activity or organization that produces or exchanges goods or services for a profit.

Cost/Benefit Analysis

A process of examining the advantages (benefits) and disadvantages (costs) of each available alternative in arriving at a decision.

Costs

An amount that must be paid or spent to buy or obtain something. The effort, loss or sacrifice necessary to achieve or obtain something.

Firms

Economic units that demand productive resources from households and supply goods and services to households and government agencies.

Incentive

Any reward or benefit, such as money, advantage or good feeling, that motivates people to do something.

Income

Payments earned by households for selling or renting their productive resources. May include salaries, wages, interest and dividends.

Market Failures

The systematic overproduction or underproduction of some goods and services that occurs when producers or consumers do not have to bear the full costs of transactions they undertake. Usually related to externalities or the need for public goods.

Return

Earnings from an investment, usually expressed as an annual percentage.

Revenue

The money a business receives from customers who buy its goods and services. Not to be confused with profit.

Services

Activities performed by people, firms or government agencies to satisfy economic wants.

Taxes

Compulsory payments to governments by households and businesses.