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104 Cards in this Set
- Front
- Back
the theory that education increases productivity and results in higher wages
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learning effect
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an unofficial, invisible barrier that prevents women and minorities from advancing in businesses dominated by white men
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glass ceiling
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it produces neither an excess supply of workers nor an excess demand for workers in the labor market
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equilibrium wage
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the value of output
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productivity
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someone in a professional or clerical job who usually earns a salary
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white-collar worker
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labor that requires minimal specialized skills and education
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semi-skilled labor
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the value of a foreign nation's currency on terms of the home nation's currency
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exchange rate
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a limit on the amount of a good that can be imported
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import quota
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the concentration of the productive efforts of individuals and firms on a limited number of activities
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specialization
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the ability to produce a product mmost efficiently given all the other products that could be produced
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comparative advantage
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a tax on imported goods
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tariff
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the result of a nation exporting more than it imports
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trade surplus
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the result of a country importing more than it exports
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trade deficit
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created by Congress to help protect investors by regulating stock transactions
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SEC
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price per share of stock divided by earnings per share for a 12 month period
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PE ratio
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change in the price of a security from the closing price on one day to the closing price on the next trading day
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net change
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well-established company with good earnings and regular stock dividends
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blue chip
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stock with a claim on the company's earnings before payment can be made on common stock
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preferred stock
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an index of stocks representing about 70 percent of the total market value of American stocks
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S & P 500
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profit or loss from selling services
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Capital gain/loss
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a broker's basic fee for purchasing or selling securities
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commission
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an electronic stock market; provides brokers and dealers with price quotations on securities traded over the counter
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NASDAQ
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an index, or statistical average, based on the market price of 30 leading companies listed on the New York Stock Exchange
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Dow Jones Industrial Average
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a declining market
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bear market
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important facts about plans or conditions of a corporation that have not been released to the public
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insider information
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World's largest securities market. Only stocks with major corporations that have met the exchange's requirements for financial solidity are listed.
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New York Stock Exchange
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a payment to stockholders from the corporation's earnings
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dividends
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the act of redirecting resources from being consumed today so that they may create benefits in the furture; the use of assets to earn income or profit
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investment
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the system that allows the transfer of money between savers and borrowers
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financial system
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claim on the property or income of a borrower
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financial asset
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institution that helps channel funds from savers to borrowers
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financial intermediary
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fund that pools the savings of many individuals and invests this money in a variety of stocks, bonds, and other financial assets
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mutual fund
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spreading out investments to reduce risk
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diversification
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a collection of financial assets
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portfolio
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an investment report to potential investors
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prospectus
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the money an investor receives above and beyond the sum of the money initially invested
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return
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the money an investor receives above and beyond the sum of the money initially invested
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coupon rate
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the time at which payment to a bondholder is due
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maturity
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the amount that an ivestor pays to purchase a bond and that will be repaid to the investor at maturity
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par value
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the annual rate of return on a bond if the bond were held to maturity
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yield
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low-denomination bond issued by the US government
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savings bond
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a bond issued by a state or local government or municipality to finance such improvements as highways, state buildings, libraries, parks, and schools
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municipal bond
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a bond that a corporation issues to rise money to expand its business
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corporate bond
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an independent agency of the government that regulates financial markets and investment companies
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Securities and Exchange Commission
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a lower-rated, potentially higher-paying bond
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junk bond
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market in which money is lent for periods longer than a year
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capital market
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market in which money is lent for periods of less than a year
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money market
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market for selling financial assets that can only be redeemed by the original holder
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primary market
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market for reselling financial assets
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secondary market
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portion of a stock
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share
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claims of ownership in a corporation
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equities
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the difference between a higher selling price and a lower purchase price, resulting in financial gain for the seller
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capital gain
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the difference between a lower selling price and a higher purchase price resulting in a financial loss to the seller
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capital loss
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the division of a single share of stock into more than one share
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stock split
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s person who links buyers and sellers of stock
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stockbroker
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a business that specializes in trading stock
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brokerage frim
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a market for buying and selling stock
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stock exchange
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an electronic marketplace for stocks and bonds
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OTC market
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contracts to buy or sell at a specific date in the future at a price specified today
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futures
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contracts to give investors the choice to buy or sell stock and other financial assets
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options
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the option to buy shares of stock at a specified time in the future
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call option
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the option to sell shares of stock at a specified time in the future
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put option
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the practice of making high-risk investments with borrowed money in hopes of getting a big return
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speculation
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a system that collects macroeconomic statistics on production, income, investment, and savings
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national income accounting
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goods used in the production of final goods
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intermediate goods
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goods that last for a relatively long time, such as refrigerators, cars, and DVD players
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durable goods
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goods that last for a short period of time such as food, light bulbs, and sneakers
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nondurable goods
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GDP measured in current prices
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nominal GDP
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GDP expressed in constant, or unchanging, prices
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real GDP
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the annual income earned by US-owned firms and US citizens
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gross national product
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the loss of the value of capital equipment that results from normal wear and tear
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depreciation
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the average ofa ll prices in the economy
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price level
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the total amount of goods and services in the economy available at all possible price levels
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aggregate supply
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the amount of goods and services in the economy that will be purchased as all possible prices
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aggregate demand
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unemployment that occurs when people take time to find a job
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frictional unemployment
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unemployment that occurs as a result of harvest schedules or vacations, or when industries slow or shut down for a season
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seasonal unemployment
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unemployment that occurs when workers' skills do not match the jobs that are available
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structural unemployment
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unemployment that rises during economic downturns and falls when the economy improves
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cyclical unemployment
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an official count of the population
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census
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the percentage of the nation's labor force that is unemployed
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unemployment rate
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the level of employment reached when there is no cyclical unemployment
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full employment
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working at a job for which one is over-qualified, or working part-time when full-time work is desired
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underemployed
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a person who wants a job but has given up looking
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discouraged worker
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a general increase in prices
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inflation
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the ability to purchase goods and services
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purchasing power
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a measurement that shows how the average price of a standard group of goods changes over time
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price index
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a price index determined by measuring the price of a standard group of goods meant to represent the "market basket" of a typical urban consumer
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Consumer Price Index
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a representative collection of goods and services
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market basket
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the percentage rate of change in price level over time
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inflation rate
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the rate of inflation excluding the effects of food and energy prices
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core inflation rate
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inflation that is out of control
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hyperinflation
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theory that too much money in the economy causes inflation
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quantity theory
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theory that inflation occurs when demand for goods and services exceeds existing supplies
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demand-pull theory
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theory that inflation occurs when producers raise prices in order to meet increased costs
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cost-push theory
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the process by which rising wages cause higher prices, and higher prices cause higher wages
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wage-price spiral
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income that does not increase even when prices go up
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fixed income
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a sustained drop in the price level
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deflation
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the percentage of people who live in households with income below the official poverty line
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poverty rate
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how the nation's total income is distributed among its population
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income distribution
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government-issued coupons that recipients exhange for food
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food stamps
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the curve that illustrates the income distribution
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Lorenz Curve
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area where companies can locate free of certain local, state, and federal taxes and restrictions
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enterprise zone
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federal funds given to the states in lump sums
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block grant
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a program requiring work in exchcange for temporary assistance
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workfare
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