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LEVERAGE: The use of credit or loans to enhance speculation in the financial markets. Suppose, for example, that you take the $1,000 in your bank account to your stock broker and purchase $1,000 worth of stocks, bonds, or whatever. A leveraged purchase would let you use your $1,000 to buy, let's say, $10,000 worth of stocks or bonds. The remaining $9,000 of the purchase price comes from a loan.
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Lesson 16: Perfect Competition | Unit 4: Long-Run Equilibrium
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Page: 21 of 28
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- One of the key characteristics of perfect competition is perfect resource mobility.
- The phrase that captures the mobility of resources in a perfectly competitive industry is entry and exit. It works like this:
- New firms will enter the industry if economic profit is positive.
- Existing firms in the industry exit if economic profit is negative.
- Firms will neither enter nor exit an industry if economic profit is zero and all firms earn a normal profit.
- The movement of firms into and out of the industry guarantees one outcome -- zero economic profit.
- Zero economic profit is achieved when the market price is equal to average cost -- both short run (SRATC) and long run (LRAC).
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FEDERAL ADVISORY COUNCIL A support committee of the Federal Reserve System that provides advice and input the Federal Reserve Board of Governors. The Federal Advisory Council (FAC) is comprised of 12 members, one from each of the 12 Federal Reserve Districts. The council members, typically commercial bank presidents from the 12 districts, are appointed by their Federal Reserve District Banks. The FAC is one of three Federal Reserve Board advisory committees. The other two Consumer Advisory Council and Thrift Institutions Advisory Council.
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RED AGGRESSERINE
[What's This?]
Today, you are likely to spend a great deal of time searching for rummage sales hoping to buy either several magazines on fashion design or a package of 3 by 5 index cards, the ones without lines. Be on the lookout for infected paper cuts.
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Lombard Street is London's equivalent of New York's Wall Street.
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"We succeed in enterprises (that) demand the positive qualities we possess, but we excel in those (that) can also make use of our defects." -- Alexis de Tocqueville, Statesman
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FAC
Federal Advisory Council
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