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Unformatted text preview: 5. Income and Wealth a. Income is money you receive. i. Earned income from working 1. Wages and salaries ii. Property income in return for allowing others to use your property. 1. Interest, profit, renting iii. Transfer income - from government transfer payments such as 1. Eg. Social security. b. Wealth is things that you own after debt. Or your net worth. i. Calculate the worth of everything you own, and then subtract your debt (what you own - debt=net worth OR Assets-Liabilities=NW) 6. Specialization a. An individual or business or country ect. Produces only some of the goods and services it uses. It trades to obtain the rest. 7. Trade a. Also called exchange - buying and selling i. May involve money or it may occur by barter of services or goods. 8. Market a. The voluntary buying and selling of a good or a service 9. Price a. The amount of money established as the payment for 1 unit of a good or service....
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This note was uploaded on 02/12/2009 for the course ECON 100 taught by Professor Hayworth during the Winter '08 term at Eastern Michigan University.
- Winter '08