11 terms were found starting with the letter r.
- Rate of Return (ROR)
- The average annual benefits from an investment divided by the net present value of all costs associated with the investment. Average annual benefits are calculated as the net present value of all benefits divided by the useful life of the investment.
- Rational Expectations
- The theory that, over time, firms, households, and other economic agents learn the processes that determines prices, wages, and other economic variables. Having learned these processes, they use this knowledge when making forecasts for these variables. Rational expectations does not imply that forecasts are always right, but rather that economic agents come up with the best possible forecasts given the information at their disposal.
- Real Income
- Nominal (or money) income adjusted for inflation.
- Real Interest Rate
- Equals the money (or nominal) rate of interest minus the rate of inflation.
- Renewable Resource
- A resource that can grow or regenerate itself within a time span relevant to human decision making (for example, years instead of centuries).
- Rent Seeking
- The pursuit of government policies or programs that transfer income to one person or group at the expense of others.
- Research and Development (R&D)
- Scientific investigation designed to develop new consumer goods and services, new inputs into production, new methods of producing goods and services, or new ways of operating and managing organizations. There are two types of R&D: basic and applied. Basic R&D does not have a specific commercial objective, while applied R&D does.
- Reserve Currency
- A foreign currency (e.g., the U.S. dollar) that a government holds as part of its foreign exchange reserves.
- Revealed Comparative Advantage (RCA)
- Measured by a good’s share in a country’s total exports relative to that good’s share in world trade. If the share of the good in the country’s exports is larger than its share in world trade, the country has a revealed comparative advantage in that good. If the share of the good in the country’s exports is smaller than its share in world trade, the country has a revealed comparative disadvantage in that good.
- Risk Aversion
- Occurs when someone is willing to pay to reduce or avoid uncertainty even though, on average, they would be better off financially by living with the uncertainty.
- Rule of Law
- A legal environment in which civil cases (contracts, employment, property, etc.) and criminal cases are handled in a non-arbitrary manner according to a well-developed and well-understood body of law.