Menu_13_Apr_11

Menu_13_Apr_11 - TODAYS MENU: Wednesday 13 April 2011 I....

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TODAY’S MENU: Wednesday 13 April 2011 I. BUSINESS A. Practice Problems 1. Chapter 30: 7-11, 13-15, 20, 21, 24 II. SUBSTANCE A. Money: the basics -Prerequisite for existence of economy, primarily based on exchange -No society known that has used as primary needs of economic problems—that use bared for the primary needs 1. Definitions -money, what is it? -has not physical form -know when you see it -anything that is generally accepted in exchange for goods and services -prerequisite—must exist before exchange takes places -social process of obligations and fulfillment—to the transference of money -what does it do? Processes? Functions? -five different ways 2. Five functions a. Means of payment -money serves as a way of making payments -separate in 2 ways i. Medium of exchange (bilateral) -money used in exchange -fulfill obligation at the time of transaction—medium of exchange ex/pizza delivery—money in exchange for pizza; pay at the time of transaction (2 way transaction) ii. Means of unilateral payment (unilateral) -money flowing in one direction which no good or service is flowing in opposite direction—making unilateral payment (one way transaction) ex/parking ticket, fine, done something you shouldn’t of done— obligation for you to pay fine—nothing coming in opposite direction
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This note was uploaded on 02/14/2012 for the course ECON 2030 taught by Professor Bong during the Fall '07 term at LSU.

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Menu_13_Apr_11 - TODAYS MENU: Wednesday 13 April 2011 I....

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