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 YTM: The common abbreviation for yield to maturity, which is the annual rate of return on a financial asset that is held until maturity. Yield to maturity depends on both the coupon rate and the face or par value paid at maturity. If the selling price of a financial asset is equal to its par value, then the yield to maturity is equal to the current yield and the coupon rate. However, if the asset is selling at a discount, then the yield to maturity exceeds the current yield, which is greater than the coupon rate. And if the asset is selling at a premium, then the yield to maturity is less than the current yield, which is below than the coupon rate.
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 Lesson Contents Unit 1: The Method Overview Components A Process Unit 1 Summary Unit 2: Theory Concept Abstraction Economic Theories Unit 2 Summary Unit 3: Verification Overview & Data Evaluation Evaluation:Don't Agree Unit 3 Summary Unit 4: Science and Practice Set Up Theory Verification Unit 4 Summary Unit 5: Cause and Effect Purpose An Example Analysis Unit 5 Summary Course Home
Economic Science

In this lesson you'll see why and how the scientific method is a process of discovery. You'll see that it's a process of building theories to explain the workings of the world (the economy) by proposing then testing hypotheses. The five units making up this lesson will guide you through the basics of the scientific method and how it's used in the study of economics.

• The first unit, The Method, introduces the scientific method, especially its' four key components -- theories, principles, hypothesis, and data.
• The second unit, Theory, then takes a closer look at theories, including the central role played by abstraction.
• In the third unit, Verification, we focus on the process of verification -- how and why hypothesized relationships about the workings of the economy are compared with actual data.
• We then turn out attention in the fourth unit, Science and Practice, to a simple example of how the scientific method is used to test a hypothesized relation between course grades and where students are seated in a classroom.
• The fifth and final unit in this lesson, Cause and Effect, examines the role that cause and effect plays in the scientific method and economic science.

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MARGINAL PRODUCTIVITY THEORY

A theory used to analyze the profit-maximizing quantity of inputs (that is, the services of factor of productions) purchased by a firm in the production of output. Marginal-productivity theory indicates that the demand for a factor of production is based on the marginal product of the factor. In particular, a firm is generally willing to pay a higher price for an input that is more productive and contributes more to output. The demand for an input is thus best termed a derived demand.

 PURPLE SMARPHIN[What's This?] Today, you are likely to spend a great deal of time wandering around the shopping mall hoping to buy either a pair of blue silicon oven mitts or a coffee cup commemorating the 2000 Olympics. Be on the lookout for spoiled cheese hiding under your bed hatching conspiracies against humanity.Your Complete Scope
 The portion of aggregate output U.S. citizens pay in taxes (30%) is less than the other six leading industrialized nations -- Britain, Canada, France, Germany, Italy, or Japan.
 "Try not to become a man of success, but rather try to become a man of value. "-- Albert Einstein
 AAOAuthorized Acquisition Objective
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