Nonprofit Organizations Notes
works in a businesslike way to promote the collective interesets of its members rather
than to seek financial gain for its members
Many are similar to corporations
Schools, churches, hospitals, wel
Factors Affecting Demand Notes
Change in the Quantity Demanded
Graphically, movement along the demand curve shows a change in quantity
demanded a change in the quantity of the product purchased in response to a change
The Income Effect
Evaluating Economic Performance Notes
Economic and Social Goals
Does our economic system meet our needs as a society?
In U.S. we have much freedom of choice
Careers, employers, how we spend our money
We cannot wa
Elasticity of Demand Notes
a measure of responsiveness that tells us how a dependent variable, such as QD,
responds to a change in an independent variable such as price
the extent to which changes in price cause changes in t
Economic Demand Notes
What is demand?
the desire, ability, and willingness to buy a product
the part of economics that deals with behavior and decision making in small units, such
as individuals or firms.
Questions: (*Answer later)
Economic Systems and Decision Making Notes
an organized way of providing for the wants and needs of their people
Allocation of scarce resources and nearly all other economic activity stems from ritual,
habit, or cus
Business Organizations & Institutions Notes
What are they?
Economic Institutions persons and organizations that use or represent the factors of
Business Organization a profit seeking enterprise that serves as the main link
between scarce resour
Economic Choices and Decision Making Notes
Trade-Offs and Opportunity Cost
Trade-Offs alternate choices
Decision making grid page 20
the cost of the next best alternative use of money, time, or resources when one choice
Concept of American Free Enterprise Notes
Characteristics of Free Enterprise Capitalism
Private Property Rights
Freedom to choose your occupation, employer, location.
Chapter 1 What is Microeconomics?
Section 1 - Scarcity and the Science of Economics
Needs and Wants
Need basic requirement for survival
Want a means of expressing a need
What is free?
The Fundamental Economic Problem
scarcity the condition that arises bec
Business Growth & Expansion Notes
Growth Through Reinvestment
Estimating Cash Flows
Income statement a report showing a businesss sales, expenses net income
and cash flow for a period of time
Net income funds left over after all of the firms expenses, in
Basic Economic Concepts Notes
Goods, Services and Consumers
Free products plentiful
Economic products goods and services that are relatively scarce, and transferable to
a tangible commodity
Consumer good intended for final use by indivi
The Federal Reserve System and Monetary Policy Notes
Structure of the Fed
Basically unchanged since 1930s
Board of Governors
7 member board, appointed by the President, Senate confirmation, 14 year term
Federal Reserve District Banks
Finance Final Exam Review Terms
- Financial institutions & intermediaries
- Non-bank financial institutions
- Junk bonds
- Components of a bond
- The Efficient Market Hypothesis
- Major stock markets and rating services
- Capital Formation
- Risk/reward a
CHAPTER 6 REVIEW
The following information you must know for the test. Answer the questions. Use your
notes or the textbook.
1. What are luxury goods?
2. What is the percentage a person should save from their net income?
3. Amounts that you have already c
Minimum Wage Analysis
Paychecks and Minimum Wage
Congratulations! You just got your first job working at ShopRite bagging groceries and
collecting the carts in the parking lot. You are very excited about the megabucks you are
making and think that there i
What is a bond?
The company or government pays annual interest to the investor until a
_ is reached.
What is a maturity date?
Corporate bonds are issued by _.
Treasury bonds are issued by _.
Municipal bonds are issued by _.
Salaries and Commissions
A commission is
A salary is
Jim sells paper for the Dunder Mifflin Paper Company. His pay is based
salary plus commission. He has a base salary of $20,000, plus he makes
commission on everything he s
Answer the questions.
Suppose you own 100 shares of stock. It pays $1 per share in dividend. How much will you
receive every quarter?
2. Randall owns 250 shares of stock. The stock pays $2 per share in dividend. Each share of stock
Sammy Stocks purchased 100 shares of Husky Blue, Inc. on January 10th when the market price
of the stock was $25. Sammys stockbroker, Jonathan, charges a $50 transaction fee on all stock
purchases and sales.
1. What was the total c
Mutual Funds and Market Indexes
Mr. Sorg was born in 1965. On July 1, 1965, the S&P 500 index was valued at $89.96.
Suppose Mr. Sorgs parents bought him 100 shares of an S&P 500 index fund at this
What would they have paid for these 100 share
McDonalds Stock Simulation
In 1954, Ray Kroc mortgaged his home and invested his entire life savings to be the exclusive distributor of
a milkshake maker called Multimixer. When he heard that a hamburger stand was using eight of his mixers
at a time, he c
Savings Vs. Investing
Savings is for _.
You should have _ in savings before you start investing.
Investing is for _.
The rate of return on an investment should be _ than the rate of inflation.
Types of Investment Tools