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Timmy can edit 2 pages in one minute and he can type 80 words in one minute. Olivia can edit 1 page in one minute and she can type 100 words in one minute. Timmy has an absolute advantage and a comparative advantage in editing, while Olivia has an absolute advantage and a comparative advantage in typing.
Corporate Bonds
Debt securities issued by corporations to raise capital, with the expectation that they will pay back the principal along with interest.
Certificate of Deposit
A savings certificate with a fixed maturity date and specified fixed interest rate that is issued by banks.
Income Stocks
Shares in companies that regularly distribute a high portion of their earnings to shareholders in the form of dividends.
Traditional IRA
A savings plan in which the income generated by the account is tax-deferred until it is withdrawn from that account.
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Q550: Microeconomics is the study of how households