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RATE OF RETURN: The ratio of the additional annual income or profit generated by an investment to the cost of the investment. Here's a simple example, although the calculations are usually a great deal more involved for actual investments. If the cost of constructing a new factory is $10 million and it gives you an extra $1 million in profit each year, then its rate of return is 10 percent.

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Lesson 20: Oligopoly | Unit 5: Evaluation Page: 24 of 24

Topic: Unit Review <=PAGE BACK | PAGE NEXT=>

In this unit, you should have learned about:
  • The bad of oligopoly, which is inefficiency and concentration of wealth that can created other problems.
  • The good of oligopoly, which is innovation that increases living standards and large scale production that provides more output out lower prices.
  • That government intervention to correct the bads of oligopoly at the expense of the goods is almost always controversial and seldom a clear-cut decision.


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INTEREST RATES, AGGREGATE DEMAND DETERMINANT

One of several specific aggregate demand determinants assumed constant when the aggregate demand curve is constructed, and that shifts the aggregate demand curve when it changes. An increase in interest rates cause a decrease (leftward shift) of the aggregate curve. A decrease in interest rates an increase (rightward shift) of the aggregate curve. Other notable aggregate demand determinants include the federal deficit, inflationary expectations, and the money supply.

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YELLOW CHIPPEROON
[What's This?]

Today, you are likely to spend a great deal of time at a flea market wanting to buy either decorative picture frames or storage boxes for your income tax returns. Be on the lookout for crowded shopping malls.
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This isn't me! What am I?

It's estimated that the U.S. economy has about $20 million of counterfeit currency in circulation, less than 0.001 perecent of the total legal currency.
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Leveraged Buyout
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