Canada"s debt to gdp now is at 36 percent. Economics: studies how scarce resource are allocated in an. Finance is distinct from economics in that finance isn"t just about economy how resources are allocated; also examines under what terms and through that channels allocations are made financial securities. Funds transferred, financial contract, contracts are called. Difference between value of what is owned and what is owed is. When we add up everything, these debts to ourselves net out to. Net worth , or equity zero because ones person"s debt is another person"s asset real assets: the tangible things that compose personal and business assets major appliances. Personal assets are the value of houses, land houses are on: major appliances and cars referred to as consumer. Asset acquisitions, refer to as capital expenditures decisions. On liability side, are ways to finance these expenditures, which refer to as corporate financing decisions. Are a claim to one individual or institution has on another.