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 YIELD: The rate of return on a financial asset. In some simple cases, the yield on a financial asset, like commercial paper, corporate bond, or government security, is the asset's interest rate. However, as a more general rule, the yield includes both the interest earned from an asset plus any changes in the asset's price. Suppose, for example, that a \$100,000 bond has a 10 percent interest rate, such that the holder receives \$10,000 interest per year. If the price of the bond increases over the course of the year from \$100,000 to \$105,000, then the bond's yield is greater than 10 percent. It includes the \$10,000 interest plus the \$5,000 bump in the price, giving a yield of 15 percent. Because bonds and similar financial assets often have fixed interest payments, their prices and subsequently yields move up and down as economic conditions change.
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 Lesson 2: Economic Science | Unit 3: Verification Page: 9 of 20

 Topic: Overview and Data <=PAGE BACK | PAGE NEXT=>

An hypothesis is a possible, even probable, scientific relationship. An hypotheses is a candidate to become a principle. Hypothesis must be tested before becoming principles.
• A possible hypothesis: The distance between a passing car and a jogger depends on the driver's political philosophy.
• Alternative hypotheses can also explain differences in distance between jogger and passing car.
An hypothesis that seems reasonable is not necessarily right. It must be verified with real world data.
• The scientific method does not accept an explanation at face value. It needs to prove an explanation is correct.
• Scientists check to see if a reasonable explanation is consistent with the data. The scientific process is all about verifying hypotheses.
• To test our hypothesis, ask people about passing distance and political affiliation.
• While subjective data, based on asking people, can be useful, objective methods of data collection are usually preferred. Let's use lasers.
• Government is a fruitful source of objective data.

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NET NATIONAL PRODUCT

The total market value of all final goods and services produced by citizens of an economy during a given period of time, usually a year, after adjusting for the depreciation of capital. Net national product (NNP) has the same relation to net domestic product (NDP) as gross national product (GNP) has to gross domestic product (GDP). Net national product also has the same relation to gross national product that net domestic product has to gross domestic product. Like NDP, NNP is a measure of the net production in the economy.

 RED AGGRESSERINE[What's This?] Today, you are likely to spend a great deal of time calling an endless list of 800 numbers looking to buy either several orange mixing bowls or clothing for your pet dog. Be on the lookout for telephone calls from former employers.Your Complete Scope
 The word "fiscal" is derived from a Latin word meaning "moneybag."
 "How wonderful it is that nobody need wait a single moment before starting to improve the world. "-- Anne Frank, diarist