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March 23, 2023 

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WEIGHT: When applied to location theory, the relative attractive force of one activity to another based on transportation cost. The weight of an activity in this context is comparable to the weight of matter subject to gravitation forces. The weight of an activity is greater if it incurs higher transportation cost. As such, it is attracted, or pulled, to other activities to reduce transportation cost. With the weight (transportation cost) of an activity is often related to physical weight (heavier items cost more to move), it need not be. Other factors affecting weight include special handling (security, comfort) and type of transportation (walking, automobile, airplane).

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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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INVESTMENT DEMAND, AmosWEB GLOSS*arama, http://www.AmosWEB.com, AmosWEB LLC, 2000-2023. [Accessed: March 23, 2023].


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EMPLOYMENT-POPULATION RATIO

The ratio of employed persons to the total civilian noninstitutionalized population 16 years old or older. Also termed the employment rate, the employment-population ratio is used as an alternative to the unemployment rate as an indicator of the utilization of labor resources.

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