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FEDERAL INSURANCE CONTRIBUTIONS ACT: Commonly abbreviated FICA, this act passed in 1939 established payroll deductions from wage-earning employees and the employers for the Social Security system. This is the noted Social Security tax that wage earners pay and which is then used to provide Social Security benefits to the elderly, disable, and qualified dependents.

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Lesson 13: Aggregate Demand | Unit 2: Doing More Page: 6 of 22

Topic: Investment Expenditures <=PAGE BACK | PAGE NEXT=>

The business sector is the group responsible for investment expenditures.

Investment is the expenditures by the business sector on final goods and services, mainly capital goods like factories and equipment, undertaken in a given time period.

Three specific categories of investment:

  • Fixed structures Buildings, factories, housing.
  • Equipment Machinery and tools.
  • Inventories Raw materials and unsold goods.
Investment is the most volatile of our four expenditures.

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AVERAGE REVENUE CURVE, PERFECT COMPETITION

A curve that graphically represents the relation between average revenue received by a perfectly competitive firm for selling its output and the quantity of output sold. Because average revenue is essentially the price of a good, the average revenue curve is also the demand curve for a perfectly competitive firm's output.

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Today, you are likely to spend a great deal of time driving to a factory outlet trying to buy either a rechargeable flashlight or storage boxes for your computer software CDs. Be on the lookout for bottles of barbeque sauce that act TOO innocent.
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The average bank teller loses about $250 every year.
"Defeat is simply a signal to press onward. "

-- Helen Keller, author, lecturer

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