Info

Chrome, ball bearings, trim on appliances and cars Sources Statistical Abstract of the United States U.S. Geological Survey Sources Statistical Abstract of the United States U.S. Geological Survey exports the goods and services that a nation sells to other nations imports the goods and services that a nation buys from other nations IMSQQDSS Trade allows nations to specialize in some products and then trade them for goods and services that are more expensive to produce. Economics and You When...

Issues In The News

Census Bureau Selects Sites for Census Dress Rehearsal San Joaquin County, Calif., and the city of Fayetteville, N.C., and surrounding area . . . have been selected by the U.S. Census Bureau to serve in 2008 as the dress rehearsal sites for the 2010 Census. . . . San Joaquin County is an urban location with a multilingual population and an assortment of group quarters housing such as hospitals, college residence halls, nursing homes, prisons and facilities for the homeless. . . . The...

Business Week newsclip

Oscar Mayer, one of the brands of Kraft Foods Inc., first launched its Lunchables product line in 1988. The prepackaged lunches quickly became popular, and today these snacks are available in many different flavor combinations. They also have come under attack by critics. Kraft is finding ways to satisfy these critics and keep consumer demand high. Charles Davis, a Kraft food maven, is on a health kick. But then, he has no choice. Making cheese healthier is complicated. Add too much calcium,...

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Source Organization for Economic Co-operation and Development (OECD) corporate income tax tax on corporate profits excise tax general revenue tax levied on the manufacture or sale of selected items taxable income of 97,500 pays the same Social Security tax 6,045 as does someone who earns 1,000,000,000. In 1965 Congress added Medicare to the Social Security program. The Medicare component of FICA is taxed at a flat rate of 1.45 percent. Unlike Social Security, there is no cap on the amount of...

Careers

* Formulate labor policy, oversee industrial labor relations, and negotiate collective bargaining agreements * Coordinate grievance procedures between unions, workers, and management * Handle complaints that result from contract disputes * Knowledge of fair wages and salaries, benefits, pensions, labor law, collective bargaining trends, and union and management practices * Ability to be patient, fair-minded, and persuasive, and to function under pressure * College courses in labor law,...

Section 2

Explain the significance of bond, coupon rate, maturity, par value, current yield, junk bond, municipal bond, tax-exempt, savings bond, beneficiary, Treasury note, Treasury bond, Treasury bill, Individual Retirement Account, capital market, money market, primary market, and secondary market. 2. Explaining What is the relationship between a bond rating and the price of the bond 3. Identifying Use a graphic organizer like the one below to identify the characteristics of financial assets. 4....

Guide To Reading

In this section, you will learn that the higher the price of a product, the more of it a producer will offer for sale. quantity supplied (p. 119) change in quantity supplied (p. 119) change in supply (p. 120) subsidy (p. 122) supply elasticity (p. 124) Describing As you read the section, complete a graphic organizer similar to the one below by describing the causes for a change in supply. Last year, the U.S. flu shot market was so unappealing that only two players were producing injectable...

They Had A Sale On Electric Green

This might actually work in the case of table salt or medical services, because the demand for both products is generally inelastic. However, what would happen if you sold a product with elastic demand If you raise the price, your total revenue which is the same as consumer expenditures will go down instead of up. This outcome is exactly the opposite of what you intended This is exactly why some businesses experiment with different prices when they introduce a new product to the market. They...

We Ws Flash

In the early 2000s, however, Home Depot's largest competitor, Lowe's, gained sales faster. Its secret Focusing on women customers. The home-improvement market is huge, estimated trillion dollars. Roughly one-fourth of that (over 50 billion) consists of purchases made by women. Hardware retailers big and small began courting women with features such as brighter lighting, wider aisles, and easy-to-reach shelves. Net Sales for The Home Depot and Lowes, 1996-2005 Net Sales for The Home Depot and...

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He amount of net spending by all levels of government federal, state, and local amounts to an ever-increasing portion of our GDP, the dollar measure of all final goods and services produced in a country in a year. It wasn't always this way, but sometimes politicians have a hard time saying no when it comes to taking care of their constituents and the interests of their home districts. A recent political trend, as discussed in the news article above, is the increasingly popular use of pork in...

Online Tax Proposal Misguided

The Direct Marketing Association (DMA) is cautioning legislators about bills introduced . . . that would allow states to force online sellers to collect sales taxes for all state and local taxing jurisdictions. . . . The failure of . . . these bills to address a reduction in the number of tax jurisdictions is a key flaw, and remains a critical obstacle to a workable streamlined sales tax program. There are currently approximately 7,600 different sales tax jurisdictions in this country,...

What Taxes

The largest chunk of tax money goes to the federal government to fund programs such as the military, retirement security, space exploration, aid to foreign countries, and disaster recovery. When you see news reports about arguments in Congress over the budget, they're arguing about how to spend your tax dollars. States, cities, and other entities also assess taxes for various purposes. Federal Income Tax Money you earn is taxable, including wages, tips, interest earned by bank accounts, and...

Investing Not Just for the Rich

About 19 percent of students in grades 8-12 own stocks or bonds. If you think you don't have enough money to invest now, remember the compounding principle time is on your side. Even the spare change you keep in a jar every week, invested consistently and well, can reap big rewards in time. Investment advice can be confusing and, let's face it, boring. A good way to learn is to join or start an investment club. Get information at All investments involve two unknowns the possibility of making...

Profiles in Economics

Galbraith attended college during the early years of the Great Depression. His experiences taught him to question accepted theories and challenge what he called conventional wisdom. advocated public works funding in The Affluent Society served as economic adviser to five presidents Shaped by his experiences during the Great Depression, John Kenneth Galbraith believed in the government's ability to solve problems. Early in his career, he also developed a love of writing and an engaging, witty...

Espaol

Equities stocks that represent ownership shares in corporations (p. 306) capital accionario acciones que representan acciones de propiedad en las corporaciones (p. 306) estate tax tax on the transfer of property when a person dies (p. 241) impuesto sucesorio impuesto por el traspaso de propiedad cuando una persona muere (p. 241) *ethics moral principles generally recognized rules of conduct (p. 480) * tica principios morales normas de conducta que generalmente se reconocen (p. 480) euro single...

Qso

T may seem odd that people once used tobacco or shells as a form of money. Frequently, people used things that were easily available and valued by others as a form of money. As a result money came in a variety of forms, shapes, and sizes. The use of money developed because it makes life easier for people and serves everyone's best interests. In fact, over time money has become a social convention, much like the general acceptance of laws and government. Today most of our money is issued by the...

Companies In The News

A federal judge in Houston sentenced Richard Causey, former chief accounting officer of Enron, to 5 1 2 years in prison Wednesday, bringing an end to the government's prosecution of top managers at what was once the nation's seventh-largest company. . . . Enron collapsed into bankruptcy five years ago after acknowledging that Andrew Fastow, the CFO, had entered into numerous business deals with the company that helped prop up Enron's earnings. Fastow later admitted that he embezzled close to 30...

I

Land includes the gifts of nature, or natural resources not created by human effort. Capital includes the tools, equipment, and factories used in production. Labor includes people with all their efforts and abilities. The four factors of production are necessary for production to take place. What four factots of production are necessary to bring clothing to consumers individuals who start a new business or bring a product to market. 8 UNIT 1 Fundamental Economic Concepts (I) Corbis, (cl) Neil...

Case Study

The theory of comparative advantage has led many companies to narrow their product lines. Richard Branson, founder of Virgin Group, did just the opposite. He decided to expand into a wide range of products in an even wider geographic area. Rather than building one large corporation with many divisions, though, Branson decided to create many individual companies united under the Virgin brand. The result companies located on most continents, selling everything from train rides and low-cost...

Assessment Activities

On a separate sheet of paper, write the letter of the key term that best matches each definition below. 1. a production cost that does not change as total business output changes 2. decision making that compares the additional costs with the additional benefits of an action 3. associated with Stage II of production 4. situation where the amount of products for sale changes while the price remains the same 5. a graphical representation of the theory of production 6. the additional output...

Critical Thinking What Do The Figures Of Bulls And Bears In The Cartoons Depict

Investing in Stocks Assume that you have saved 10,000 and have decided to invest in stocks. Research the performance of 2 to 3 stocks listed on the NYSE, AMEX, or NASDAQ. Then write a short paper that includes the following a. Reasons you chose the stocks c. Factors influencing the gain loss in value d. Analysis of why you would hold your stocks for either the short term or the long term John 38. Look at Figure 11.1 on page 291. In a brief paragraph, describe the financial assets savers...

Kenneth I Chenault

first African American to be CEO of a top-100 company responsible for continuing American Express's 155-year-old tradition of reinvention during global change Kenneth Chenault did not start his career in business. Instead, he earned an undergraduate degree in history and a law degree at Harvard. He had keen instincts for business, however, and worked for a management consulting firm before joining American Express in 1981. At first, Chenault was responsible for strategic planning. His...

Why Are Workers In The Foodservice Industry Least Likely To Be Unionized

Describe current union influence in terms of membership and workers represented by unions. 30. Explain why a college degree can lead to higher wages. 31. Identify the purpose of collective bargaining. 32. List the approaches to resolving a deadlock between a union and a company's management. 33. Explain why men and women are said to have human capital differences. 34. Describe two corrective measures being taken to close the income gap between men and women workers. 35. Identify the...

Time

S we look at the economic history of the United States, it is clear that times are better than ever. Inflation is largely under control, and the economy is larger and more productive than ever. Recessions still occur, of course, but business cycles have generally turned into fluctuations, and economic expansions are longer than ever. Major domestic or even international events can temporarily interrupt the economy, but capitalistic market economies have a remarkable ability to cope with...

People In The News

Louis Myer is one of the uncounted. . . . He volunteers at a Stone Mountain-based nonprofit that refurbishes donated medical equipment and gives it to those who need it. Laid off in 2001 from a job as an engineer, the Atlanta native struggled in vain to catch another employer's interest. He volunteered for a while at Habitat for Humanity. In October, he started helping out at the Stone Mountain nonprofit. It is good work, but it is not paid work. Even so, he is not counted as unemployed. . . ....

Products In The News

- Asbury Park Press and the New York Times America may have started the worldwide comics craze when U.S. soldiers scattered them around in foreign countries during World War II. Today, they are a global phenomenon the most widely read literature in the world. According to one published report, 40 percent of all printed material in Japan consists of comics. In the United States, 375 new comic books are sold every month. The comic-book industry as a whole has had a healthy year. Industry analysts...

E

Conomic development is important to most countries, but economic development normally requires some type of financing. Sometimes the funding can be generated internally, and sometimes it can be secured from external sources such as foreign governments and foreign investors. If a developing country has a market economy and the government is politically stable, the country has an even better chance of attracting foreign investment. The search for profits, as you read in the news article above, is...

R2 Personal Finance Handbook

Some banks offer better service or lower fees, or are conveniently located. Banks offer different types of accounts, some of which pay interest in exchange for having the use of your money. Before opening an account, savvy consumers ask if there's a minimum balance requirement, how many checks can be written per month, if there are fees for writing checks, and if the account will earn interest. Choose a traditional bank that offers some services online or a bank that exists only on the Net. If...

How To Establish Credit

Paying cash for everything does not make you a good credit risk. To prove you're responsible enough to get credit, you have to establish a credit history. About 15 of a credit score is based on how long you've had credit. So it's important to establish credit as soon as possible. 1. Apply for a secured credit card at a bank. You'll have to make a deposit usually about 300 and you'll get a credit card you can use to make purchases up to the amount you deposited. Buy something each month with the...

Section

Explain the significance of price, rationing, ration coupon, and rebate. 2. Describing What are the advantages of prices 3. Identifying Use a graphic organizer like the one below to identify the problems associated with rationing. 4. Explaining Why are prices an efficient way to allocate goods and services 5. tTABBIGIBBB Describe how prices help allocate scarce resources by answering the questions of WHAT, HOW, and FOR WHOM to produce. 6. Analyzing Visuals Look at the photograph on page 145....

Chapter

Classify each of the terms below as pro-union, antiunion, or neither. Use each of these words in a sentence that reflects the word's meaning in the chapter. Then create a word search puzzle using the sentences without the word-as clues. 27. Describe several reasons for the rise of unions prior to 1930. 28. Identify the effects of union activities during the postCivil War period by using a graphic organizer similar to the one below.

How Savers And Investors Work Together In A Financial System

Or an economic system to grow, it must produce capital the equipment, tools, and machinery used in production. In order for this to happen, saving must take place. To the economist, saving means the absence of spending, while savings refers to the dollars that become available when people abstain from consumption. Our financial system continually evolves to meet the needs of both savers and investors. If you decide to save your income, as Jonathan Ping in the news story and other bloggers are...

News Clip On Minimum Wage

A gap in income between high- and low-paid workers has always existed. Some people argue that income inequality today is as high as before the Great Depression. Shame on . . . us, passive witnesses to the emergence of a second Gilded Age, another Roaring Twenties, in which the fruits of economic success have gone not to the broad populace but to a slim sliver at the top. For this handful, life is a sweet m lange mix of megafortunes, grand houses, and massive yachts. Meanwhile, the bottom 80...

C

Apitalism has become the economic system of choice in many parts of the world because of its ability to generate wealth, just as it has for Claire's. Capitalism, as you have learned, is an economic system in which private citizens own and use the factors of production to generate profits. The U.S. economy is based on free enterprise. Under free enterprise, resources are privately owned, and competition is allowed to flourish with a minimum of government interference. We often use the terms...

Tt Tt

This organizational chart shows the chain of command of a typical organization. It also outlines the basic components of the business, such as sales, production, and payroll. Who reports directly to the vice president of production can then be used to finance or expand operations. A corporation may also borrow money by issuing bonds. A bond is a written promise to repay the amount borrowed at a later date. The amount borrowed is known as the principal. While the money is borrowed, the...

Possibilities Frontier

Production Possibility Frontier Diagram

A decision-making grid lists alternatives and criteria to help evaluate choices. I What do economists mean when they talk about costs IMSDDDSS Economies face trade-offs when deciding what goods and services to produce. Economics amp You You just learned that you face trade-offs and opportunity costs when making choices. Read on to learn how opportunity cost applies to countries as well as individuals. To illustrate opportunity cost, economists use the production possibilities frontier, a...

Graphic Organizer Consumers Goods Services

Arises because society does not have enough resources to produce all the things people would like to have. of going to a football game instead of work- ing would include the money not earned at your job. 6. _is the sum of the skills, abilities, health, and 7. _is another name for the capacity of a product to 8. The only factors of production that are themselves the result of earlier production are _____ . 9. Land, capital, labor, and entrepreneurs are_. 10. _is the study of how people use...