productive capital: things used to produce goods and
services; machines, tools, factories, equipment, etc.
productivity: the output of goods and services as
measured per unit of time, or per person, per company, per
industry, or for the whole economy. What plummeted
nationwide during the President Clinton-Monica Lewinsky
controversy. Productivity measures how much work you get
done in a given period of time.
profit: the money that remains after the costs of doing
business have been paid. Difference between a firm's total
revenues and its total costs. Same as income, the difference
between revenue and expenses, before taxes.
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profit margin: difference between cost and selling
price. A good measure of a company's efficiency, this
essentially tells you how much the company makes off sales
after expenses are paid. Generally, the higher the profit mar-
gin, the more efficient the company. Net profit margin is net
income divided by net sales. Gross profit margin is gross
profit divided by net sales.
profit motive: the desire to benefit from the
investment of time and money in a business enterprise.
