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July 18, 2025 

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DISMAL SCIENCE: A term for the study of economics developed during the late 18th and early 19th century when economists concluded that continued population growth would push wages and living standards to a minimal subsistence level and keep them there. It persists to the present time because economics continue to point out that actions result in opportunity cost, that nothing is free, and that eventually society has to pay the price for what it does.

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CORPORATE BOND: A bond issued by a corporation to raise the funds used for capital investment. A corporate bond usually has a maturity date of 5 years or more, with 30 years common. Most corporate bonds are negotiable and traded through financial markets after issued.

     See also | bond | corporation | capital | investment | financial markets | commercial paper | government securities | capital market |


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INCREASING RETURNS TO SCALE

A given proportional change in all resources in the long run results in a proportional greater change in production. Increasing returns to scale exists if a firm increases ALL resources--labor, capital, and other inputs--by a given proportion (say 10 percent) and output increases by more than this proportion (that is more than 10 percent). This is one of three returns to scale. The other two are decreasing returns to scale and constant returns to scale.

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