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TRANSFER PAYMENT: A payment made without any corresponding production or expectations of production. Unless otherwise noted (such as business transfer payments), the term transfer payments generally refers to payments by the government sector to the household sector. The three most important transfer payments in our economy are for Social Security, unemployment compensation, and welfare. The intent of these transfers payments is to redistribute income, and thus the goods and services that can be had with the income. Transfer payments surface as income received but not earned (IRBNE) added to national income to derived personal income.

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INTRODUCTION STAGE: The first stage in the product life cycle, characterized by high research and development (R&D) and high production costs. Companies invest heavily in advertising and promotional activities to achieve product and brand name recognition in the minds of the consumers. Profits are usually non-existent and there is a high probability of failure during this initial stage. Product failure can occur if proper market research was not completed prior to development of the product (or service). This lack of research might lead to the development of a product that does not really have a market. Other situations that can cause failure at this stage include: lack of capital, an incomplete/defective product, or poor strategic planning.

     See also | product life cycle | growth stage | maturity stage | decline stage | capital |


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FISCAL POLICY

Control over government spending and taxes by a central government which is used to stabilize business cycles, reduce unemployment and inflation, and promote economic growth. In the United States fiscal policy is primarily undertaken at the federal level through acts of Congress and actions by the President. However, state and local governments also undertake fiscal policy to stabilize their local macroeconomies. The government sector has three alternative tools in the use of fiscal policy--government purchases, taxes, and transfer payments. An alternative to fiscal policy is monetary policy.

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BEIGE MUNDORTLE
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Today, you are likely to spend a great deal of time wandering around the downtown area hoping to buy either a turbo-powered vacuum cleaner or a battery-powered, rechargeable vacuum cleaner. Be on the lookout for the last item on a shelf.
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Ragnar Frisch and Jan Tinbergen were the 1st Nobel Prize winners in Economics in 1969.
"Good judgment comes from experience, and often experience comes from bad judgment."

-- Rita Mae Brown ‚ Writer

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Financial Accounting Standards Board
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