Intro to Economic Development

Question 1

Absolute Advantage

Answer 1

Term used when comparing two economies. An economy has an absolute advantage over another when it can produce more of a product, simply because it has more resources. Absolute advantage says nothing of efficiency, nor opportunity cost.

Question 2

Ad Valorem Tax

Answer 2

A tax levied on the value of the taxed item. Local taxes are generally ad valorem taxes.

Question 3

Aid to Family and Dependent Children (AFDC)

Answer 3

Aid to Families with Dependent Children provides income assistance to low income families. This has been replaced by TANF, Temporary Assistance to Needy Families.

Question 4

Amortization

Answer 4

The liquidation of a debt via specific schedule of payments.

Question 5

Anchor, or “Key” Tenant

Answer 5

The most important tenant, often the largest, in a development project whose lease is instrumental in securing financing for the project and in attracting other tenants.

Question 6

Affordable Housing

Answer 6

Housing which consumes no more than 30 percent of household income.

Question 7

Angel Investor

Answer 7

An investor who provides equity investment to start up businesses.

Question 8

Assessed Valuation

Answer 8

The monetary worth of a property for the purposes of taxation. Total assessed valuation denotes the sum of the monetary worth of all taxable properties within a jurisdiction.