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AD VALOREM TAX: A tax that is specified as a percentage of value. Sales, income, and property taxes are three of the more popular ad valorem taxes devised by government. The total ad valorem tax paid increases with the value of what's being taxed.

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SIGNALLING

When confronted by asymmetric information, the use of small bits of information, or indicators, that suggest more comprehensive information. Signalling is used by those with more information to reduce the cost of informing those with less information. It is commonly used in markets with adverse selection. Methods of signalling include advertising, brand names, and warranties. A related method is screening.

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Today, you are likely to spend a great deal of time at a going out of business sale wanting to buy either a how-to book on home remodeling or a tall storage cabinet with five shelves and a secure lock. Be on the lookout for telephone calls from long-lost relatives.
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The average bank teller loses about $250 every year.
"What we have done for ourselves alone dies with us; what we have done for others and the world remains and is immortal."

-- Albert Pike

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Economic Journal
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