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endogenous growth theory (04)<br />An explanation of ECONOMIC GROWTH as the product of the structural features of an ECONOMY. An early theory was HARROD'S warranted rate of growth that made the growth rate depend on the savings ratio and output-capital ratio, both structural features. Later versions of this theory had foundations in microeconomics and emphasized the contribution of accumulated HUMAN CAPITAL to increased productivity. endowment (A1)<br />1 An original asset, especially land; inherent ability.<br /> 2 Something of value bestowed upon another.
shutdown price (DO)<br />A minimum price equal to the short-run average VARIABLE cosr. Below this price, firms would prefer to shut down rather than accept a lower price and incur losses, including payments needed to cover FIXED COSTS.
<strong>Gift aid</strong> – Financial aid that does not have to be repaid, including grants and scholarships.
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free cash flow (D3, M4)<br />A firm's intake of cash in excess of what is required to fund all profitable activities. Managers try to invest it in risky projects; shareholders ask for a distribution of it.
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