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Transcript of Economics
the most desirable
alternative we give up
to get what we want. A historic example is World War 2. We sent our soldiers out, when we knew they would get killed. Functions of the 4 Major Sectors
The household consumes goods
and services. The buisness provides
goods and jobs to the household.
Banks provide loans,savings and
checking accounts. Government takes
taxesand provides services. Pepsico makes a lot of
money. It is a good investment Lessons Stock
An ownership share or shares of
ownership in a corporation. Diversification
To own a variety of stocks Company
A buisness to manufacture goods or provide services. Dividends
A bonus that a company pays out to stockholders When to hold,buy or sell
If the current revenue and profit is higher, you might hold the stock or buy more. If the stock price is steady and the analyst report is positive, you would hold the stock, but not buy more. If a stock is down and the analyst report is negative you may want to sell. If you believe the stock has reached a peak you may sell to gain the profit. How does money grow over time
If you keep it in a bank account, over time they will put money in it. It depends on percentage. Price incentive
A benefit that gets a person to buy. An example is the Chisholm Trail. Participating in the cattle trail would make cattle prices higher Voluntary Exchange
A willing trade. An example from history is the Chisholm Trail. You could sell a cow for 40$ in the east, but in Texas you could sell one for 4$. An example is that the north was mostly industry before the Civil War, and the south was mostly agriculture. An example was
when people rationed goods during WWII. Personal Budget is when you say you are not going to spend this much money on an item. An example is that you have $5. You won't spend all of that money because you are on a personal budget. Consumers rely on buisnesses to get jobs. Buisnesses rely on consumers to buy their products. Entrepreneurs are people who start their own buisness. An example is Bill Gates. He started the company Microsoft. He quit college to start the company. Competition is when two buisnesses compete to lower their prices. A person might change his behavior by going to another store than going to his or her usual one. By:Tal Martin