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CAPITAL MARKET: A financial market that trades bonds, stocks, or any other long-term financial instruments used by businesses to raise funds. The term "capital" comes from the notion that business commonly get their funds to finance investment in capital from these markets. Compare money market.

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FACTOR MARKET, EFFICIENCY

A factor market achieves efficiency in the allocation of resources by equating marginal revenue product to factor price. Perfect competition, as the efficiency benchmark, is the only market structure to satisfy this criterion and achieve factor market efficiency. Monopsony, oligopsony, and monopsonistic competition are inefficient because they equate marginal revenue product to marginal factor cost, both of which are greater than factor price.

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GRAY SKITTERY
[What's This?]

Today, you are likely to spend a great deal of time at an auction wanting to buy either a pair of designer sunglasses or looseleaf notebook paper. Be on the lookout for mail order catalogs with hidden messages.
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This isn't me! What am I?

The 1909 Lincoln penny was the first U.S. coin with the likeness of a U.S. President.
"The roots of education are bitter, but the fruit is sweet."

-- Aristotle, Greek philosopher

IIP
Index of Industrial Production
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