Microsoft Word Web glossary doc

 
Reproduction: The economic process of recreating the work force. Reproduction involves 
caring for one’s self and one’s family, and raising children. 
 
Retained Earnings: Business profits which are not distributed to shareholders (through 
dividends or other payouts), but instead are retained within the company in order to finance 
future investment or other expenditures. 
 
Return on Equity: A measure of business profitability equal to net after-tax income divided by 
the average level of shareholders’ equity in the business. 
 

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Sales Tax: A tax imposed as a proportion of consumer spending on specified goods or services.
Also known as a “value-added” tax. 
 
Saving: The portion of income which is not spent on consumption. Saving can be undertaken 
by individuals and households, by businesses, or by governments. 
 
Securitization: A process in which financial relationships (such as loans) are converted into 
financial securities or assets (such as bonds) which can be bought and re-sold in securities 
markets. 
 
Services: A form of output which consists of a function performed for one person by another – 
such as cooking and serving a meal, teaching a lecture, completing a telephone call, or delivering 
a package. Distinct from goods. 
 
Shares: Financial assets which represent the ownership of a small proportion of the total equity 
(or net wealth) of a corporation. Shares can be bought and sold on a stock market. 
 
Slavery: An economic system in which most work is performed by individuals who are forcibly 
compelled to work with no formal compensation, under the control of a slave-owning elite.