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LEGAL CLAIMS: Ownership of the physical goods, services, and resources that make up the real side of the economy. Legal claims are a key feature of the paper, or financial side of the economy. Transferring legal claims is the primary method of diverting income from household saving to investment and government borrowing. Legal-claim buyers loan income and legal-claim sellers borrower income.

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SIGNALLING

When confronted by asymmetric information, the use of small bits of information, or indicators, that suggest more comprehensive information. Signalling is used by those with more information to reduce the cost of informing those with less information. It is commonly used in markets with adverse selection. Methods of signalling include advertising, brand names, and warranties. A related method is screening.

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Today, you are likely to spend a great deal of time at a flea market looking to buy either a replacement nozzle for your shower or a decorative windchime with plastic . Be on the lookout for poorly written technical manuals.
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Al Capone's business card said he was a used furniture dealer.
"Unless you are willing to drench yourself in your work beyond the capacity of the average man, you are just not cut out for positions at the top."

-- J. C. Penney, Retailer

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