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TAX RATE: The percent of the tax base that is collected as tax. The tax rate can be a flat, or proportional, rate, meaning it is a constant percent of the tax base regardless of the size or value of the base. Or the tax rate can change as the tax base changes. If the tax rate increases, the tax is progressive. If the tax rate decreases, the tax is regressive.

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Lesson 12: Business Cycles | Unit 3: Measurement Page: 13 of 26

Topic: Leading <=PAGE BACK | PAGE NEXT=>

Leading economic indicators indicate business-cycle activity 3 or 12 months ahead. If leading indicators decline now, then the economy is likely to decline in 3 to 12 months.
  • Leading indicators are eleven statistics that precede changes in the economy.
  • Three notable leading indicators are stock market prices, the money supply, and consumer confidence.
  • The Composite Index of Leading Indicators, displayed in this chart, combines all eleven into a single number.
  • The Composite Index works better than individual indicators, but they are not perfect. Some declines not followed by a contraction.

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VOTING RULES

The guidelines followed by groups of individuals or members of society when making collective or joint decisions that involve casting formal indications of choice (that is, votes). The five most noted voting rules are majority, super majority, unanimity, plurality, and weighted. These rules determine if a choice is or is not approved by the voting group. Voting rules are important for the study of public choice and government inefficiencies that arise in the voting process due to the median voter, logrolling, and the voting paradox.

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Today, you are likely to spend a great deal of time looking for a downtown retail store hoping to buy either a Boston Red Sox baseball cap or a square lamp shade with frills along the bottom. Be on the lookout for mail order catalogs with hidden messages.
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A scripophilist is one who collects rare stock and bond certificates, usually from extinct companies.
"It is not because things are difficult that we do not dare; it is because we do not dare that they are difficult. "

-- Seneca, statesman, dramatist, philosopher

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