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ZERO BOND: Also termed a zero coupon bond, a bond that does not pay interest, in which the return is generated by the difference between the purchase price and the face value paid at maturity. Because they do not pay interest, zero bonds are sold at a discount. For example, a $10,000 zero bond that matures in one year, would generate a 10% return if it sold at a discount of $9,000.

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CONTRIBUTIVE STANDARD: One of three basic income distribution standards (the other two are equality standard and needs standard). The contributive standard distributes income based on a person's contribution to production. This standard answers the For Whom? question of allocation primarily through the use of prices and markets. The resources used to produce goods that more highly valued society (meaning they better satisfy unlimited wants and needs) command higher prices and thus generate more income to their owners. An actor, for example, who can attract millions of adoring. $7-a-ticket fans to one performance of an action-packed, blockbuster movie produces a good that is more highly valued by society than a philosophy professor who spends all semester teaching a handful of reluctant, $100-a-credit-hour students the finer details of existentialism.

     See also | income distribution | income | distribution standards | needs standard | equality standard | three questions of allocation | efficiency | incentive | value | marginal productivity theory | For Whom? |


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CONTRIBUTIVE STANDARD, AmosWEB GLOSS*arama, http://www.AmosWEB.com, AmosWEB LLC, 2000-2025. [Accessed: March 26, 2025].


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PRODUCER SURPLUS

The revenue that producers obtain from a good over and above the price paid. This is the difference between the minimum supply price that sellers are willing to accept and the price that they actually receive. A related notion from the demand side of the market is consumer surplus.

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Today, you are likely to spend a great deal of time calling an endless list of 800 numbers wanting to buy either a pleather CD case or a how-to book on fine dining. Be on the lookout for florescent light bulbs that hum folk songs from the sixties.
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Parker Brothers, the folks who produce the Monopoly board game, prints more Monopoly money each year than real currency printed by the U.S. government.
"You are the only problem you will ever have and you are the only solution. Change is inevitable, personal growth is always a personal decision."

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