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APC: The abbreviation for average propensity to consume, which is the proportion of income, usually measured as disposable income or national income, used for household consumption expenditures. It is found by dividing consumption by income. The average propensity to consume, abbreviated APC, most often pops up in discussions of Keynesian economics. The average propensity to consume is the average amount of total household income that is devoted consumption expenditures.

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INVESTMENT DEMAND: The negative relation between investment expenditures and the interest rate, based on the marginal efficiency of investment for different capital investment projects. Business firms generally compare the expected return on physical capital (the marginal efficiency of investment) with the return on financial capital (the interest rate). Should the marginal efficiency of investment be greater than or equal to the interest rate, then the capital investment is undertaken. Because more investment projects exist with lower rates of return than higher, the relation between interest rates and investment expenditures is negative.

     See also | investment expenditures | interest rate | marginal efficiency of investment | physical capital | financial capital | investment demand curve | Keynesian economics |


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MARGINAL FACTOR COST, PERFECT COMPETITION

The change in total factor cost resulting from a change in the quantity of factor input employed by a perfectly competitive firm. Marginal factor cost, abbreviated MFC, indicates how total factor cost changes with the employment of one more input. It is found by dividing the change in total factor cost by the change in the quantity of input used. Marginal factor cost is compared with marginal revenue product to identify the profit-maximizing quantity of input to hire.

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Today, you are likely to spend a great deal of time searching for a specialty store trying to buy either a T-shirt commemorating the second moon landing or a coffee cup commemorating Thor Heyerdahl's Pacific crossing aboard the Kon-Tiki. Be on the lookout for broken fingernail clippers.
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Cyrus McCormick not only invented the reaper for harvesting grain, he also invented the installment payment for selling his reaper.
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