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FIRM: An organization that combines resources for the production and supply of goods and services. The firm is used by entrepreneurs to bring together otherwise unproductive resources. The key role played by a firm is the production of output using the economy's scarce resources. Firm's are the means through which society transforms less satisfying resources into more satisfying goods and services. If firms didn't do this deed, then something else would. And we would probably call those something elses firms.

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3-6-3 RULE: An informal rule of operation of savings and loan associations in the 1950s and 1960s in which a 3 percent interest was paid on savings accounts, a 6 percent interest was charged for mortgage loans, and the president was playing golf by 3:00 o'clock in the afternoon. This informal rule is used to indicate that the savings and loan industry during this period was far removed from the high-stressed financial markets that characterize modern banking.

     See also | savings and loan association | bank | loan | saving | deposit | financial market | Federal Home Loan Bank |


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ECONOMIC ANALYSIS

The process of investigating economic phenomena in a systematic manner. In one sense, this is the heart and soul of the economic discipline. While economists spend an ample time identifying economic concepts, the end result of this discovery process is usually aimed at combining these concepts in such a way as to evaluate or analyze alternative consequences.

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Today, you are likely to spend a great deal of time flipping through mail order catalogs hoping to buy either a brown leather attache case or car battery jumper cables. Be on the lookout for celebrities who speak directly to you through your television.
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A scripophilist is one who collects rare stock and bond certificates, usually from extinct companies.
"Before you can inspire with emotion, you must be swamped with it yourself. Before you can move their tears, your own must flow. To convince them, you must yourself believe."

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