This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: no direct effect on the US economy Define the following words: • Initial Public Offering (IPO) • Bond: a type of financial instrument that firms issue in exchange for cash • Stock • Investment Banker • Secondary Market • Dividends • Bond Interest Payments • Bad Prices and Interest Rate (show how related) • Governments (financial sense) • Munis: municipal information system • Stock Exchange • Over-the-Counter Market Production Possibility Frontier (cont'd) • Any point on the graph curve is efficient • What is the most economically efficient point? • Lumber (cord of wood) = 4 ft x 4 ft x 8 ft • 942 1lb books • 2000 lbs of paper • 61,370 #10 envelopes • 7,500,000 toothpicks • Opportunity Cost (measured in toothpicks) = 7,500,000 toothpicks / 942 books = 7,961 toothpicks/books • In an industry where output rises and productivity and value increases people expect higher salaries...
View Full Document
- Spring '99
- Economics, Stock exchange, toothpicks Opportunity Cost