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Everyday Finance : Economics, Personal Money Mangement, and Entrepreneurship

ISBN: 9781414410494

Table of Contents

Reader's Guide

Glossary

xvii

How the Economy Works

Introduction: What is Economics?

(6)

Biography: Adam Smith

(5)

The Big Picture: Macroeconomics

(108)

Overview: Macroeconomics

(2)

Basic Economic Concepts

Scarcity

(3)

Biography: Thomas Malthus

(1)

Three Economic Questions: What, How, for Whom?

(2)

Factors of Production: Land, Labor, Capital

(3)

Circular Flow of Economic Activity

(3)

Ceteris Paribus

(2)

Economic Systems and Philosophies

Traditional Economic System

(4)

Barter

(2)

Market Economy

(1)

Biography: John Stuart Mill

(16)

Classical Economics

(3)

Neoclassical Economics

(2)

Say's Law

(1)

Keynesian Economics

(3)

Monetarist Theory

(2)

Supply Side Theory

(2)

Rational Expectation Theory

(1)

Planned Economy

(4)

Marxist Economics

(1)

Biography: Karl Marx

(3)

Mixed Economic System

(5)

Transition Economy

(2)

What Is Money?

Money

(3)

Money Supply

(2)

Inflation

(2)

Deflation

(2)

Stagflation

(2)

Debt

(2)

Interest Rate

(3)

The Economy in Action

Economic Growth

(2)

Business Cycle

(3)

Recession

(2)

Great Depression

(2)

Industries

(3)

Investment

(2)

Employment and Unemployment

(3)

Financial Markets

(3)

Black Market

(2)

How the Economy Is Measured

Gross Domestic Product

(2)

Consumption

(2)

Aggregate Demand

100

(3)

Aggregate Supply

103

(3)

Income

106

(2)

Consumer Price Index

108

(2)

Producer Price Index

110

(2)

Index of Leading Economic Indicators

112

(2)

Standard of Living

114

(3)

The Individual Parts: Microeconomics

117

(84)

Overview: Microeconomics

117

(1)

Biography: Alfred Marshall

118

(2)

Supply and Demand: The Relationship between Businesses and Consumers

Market

120

(3)

Supply and Demand

123

(2)

Elastic and Inelastic Demand

125

(2)

Marginal Utility

127

(2)

Economic Shortage

129

(3)

Economic Surplus

132

(1)

Income and Substitution Effects

133

(3)

Market Failure

136

(2)

Externality

138

(3)

Economic Rent

141

(1)

Competition between Businesses

Perfect Competition

142

(3)

Monopoly

145

(2)

Natural Monopoly

147

(3)

Government-Granted Monopoly

150

(2)

Monopolistic Competition

152

(2)

Oligopoly

154

(2)

Cartel

156

(2)

Game Theory

158

(2)

What Motivates Businesses

Revenue

160

(2)

Profit and Loss

162

(3)

Long Run versus Short Run

165

(2)

Economies of Scale

167

(3)

Barriers to Entry

170

(2)

Law of Diminishing Returns

172

(2)

Opportunity Costs

174

(2)

Production Possibilities Curve

176

(2)

Technology

178

(2)

Consumer Sovereignty

180

(3)

Labor: The People Working in the Economy

Labor Force

183

(1)

Division of Labor

184

(2)

Wages

186

(2)

Inequality in the Labor Force: Opportunity versus Outcome

188

(3)

Distribution of Income

191

(2)

Productivity

193

(3)

Labor Union

196

(2)

Labor-Management Relations

198

(3)

How Countries Work Together: International Trade

201

(36)

Overview: International Trade

201

(1)

Biography: David Ricardo

202

(3)

Basic Concepts

Exports

205

(2)

Imports

207

(3)

Absolute Advantage

210

(2)

Comparative Advantage

212

(2)

Free Trade

214

(3)

Money Moving between Countries

Balance of Payments

217

(2)

Trade Surplus and Trade Deficit

219

(2)

Foreign Exchange

221

(2)

Foreign Direct Investment

223

(2)

International Trends

Globalization

225

(3)

Developed Countries

228

(2)

Developing Countries

230

(2)

International Labor Issues

232

(2)

Foreign Worker

234

(3)

Government's Role in the Economy

237

(104)

Overview: Government's Role in the Economy

237

(1)

Biography: John Maynard Keynes

238

(3)

Basic Responsibilities

Private Property and Property Rights

241

(3)

Creation of Public Goods

244

(4)

Problem of Free Riders

245

(3)

Fiscal Policy

248

(1)

Government Spending

249

(19)

Multiplier Effect

251

(2)

Government Failure

253

(2)

Economic Development

255

(3)

Sustainable Development

258

(2)

Transfer Payment

260

(3)

Welfare

263

(2)

Foreign Aid

265

(3)

Monetary Policy

268

(5)

Bank Reserves

270

(3)

Economic Legislation

273

(19)

Antitrust Legislation

276

(2)

Intellectual Property

278

(3)

Labor Laws

281

(2)

Minimum Wage

283

(3)

Protectionism

286

(2)

Free Trade Zone

288

(2)

Price Ceilings and Price Floors

290

(2)

How Governments Raise Money

Taxes

292

(3)

Income Tax

295

(2)

Sales Tax

297

(2)

Excise Tax

299

(2)

Property Tax

301

(2)

Estate Tax and Inheritance Tax

303

(1)

Business Tax

304

(3)

Who Oversees the Economy: Government Organizations

Bureau of Economic Analysis

307

(1)

Bureau of Labor Statistics

308

(2)

Consumer Product Safety Commission

310

(2)

Federal Deposit Insurance Corporation

312

(3)

Federal Open Market Committee

315

(2)

Food and Drug Administration

317

(2)

Federal Reserve System

319

(2)

Federal Trade Commission

321

(3)

Internal Revenue Service

324

(2)

Securities and Exchange Commission

326

(1)

Group of Eight

327

(2)

International Monetary Fund

329

(2)

Trade Bloc

331

(3)

World Trade Organization

334

(2)

World Bank

336

(5)

Personal Money Management: Buying, Borrowing, Saving, and Insuring

Introduction: Personal Money Management

341

(4)

Buying: The Consumer's Role in the Economy

345

(44)

Overview: Personal Decision-Making and Shopping

345

(3)

Common Concerns

Budgeting

348

(2)

Bills

350

(3)

Buying a Car

353

(2)

Leasing a Car

355

(2)

Buying a Home

357

(3)

Renting an Apartment

360

(2)

How to Pay for Everyday Purchases

Cash

362

(3)

Checking Account

365

(2)

Credit Card

367

(5)

MasterCard

369

(2)

Visa Card

371

(1)

Charge Card

372

(2)

Debit Card

374

(3)

Electronic Banking

377

(2)

Money Order

379

(1)

Cashier's Check

380

(2)

Traveler's Check

382

(2)

Gift Certificate

384

(2)

Gift Card

386

(3)

Borrowing: When You Need More Money Than You Have

389

(46)

Overview: Why People Go into Debt

389

(2)

Types of Loans

Loan

391

(2)

Line of Credit

393

(2)

Personal Loan

395

(2)

Student Loan

397

(2)

Car Loan

399

(3)

Home Loan

402

(2)

Home Equity Loan

404

(2)

Payday Loan

406

(2)

Debt Consolidation Loan

408

(2)

Who Lends Money

Bank

410

(3)

Credit Union

413

(2)

Savings and Loan Association

415

(2)

Finance Company

417

(2)

Pawnbroker

419

(2)

Rent-to-Own Store

421

(2)

Check-Cashing Store

423

(2)

Problems with Debt

Credit Counseling

425

(2)

Credit Bureau

427

(2)

Bankruptcy

429

(2)

Garnished Wages

431

(4)

Saving and Investing: Planning for the Future

435

(42)

Overview: Saving and Investing Money

435

(3)

Motivations for Saving and Investing

Time Value of Money

438

(2)

Risk versus Reward

440

(2)

Financial Planning

442

(2)

Saving for College

444

(2)

Retirement Plans

446

(3)

Where to Save and Invest

Savings Account

449

(2)

Money Market Account

451

(2)

Certificate of Deposit

453

(3)

Common Stock

456

(8)

Stock Market

458

(2)

New York Stock Exchange

460

(2)

NASDAQ

462

(2)

Bond

464

(2)

Mutual Fund

466

(3)

Treasury Securities

469

(2)

Hedge Fund

471

(2)

Capital Gains and Losses

473

(2)

Safe-Deposit Box

475

(2)

Protecting Yourself from Risk

477

(54)

Overview: Insurance

477

(2)

Types of Insurance

Home Insurance

479

(3)

Renter's Insurance

482

(1)

Car Insurance

483

(2)

Warranty

485

(2)

Medical Insurance

487

(11)

Health Maintenance Organization

491

(3)

Preferred Provider Organization

494

(2)

COBRA

496

(2)

Dental Insurance

498

(2)

Disability Insurance

500

(2)

Life Insurance

502

(2)

Government Protection

Medicare

504

(3)

Medicaid

507

(2)

Food Stamp

509

(2)

Social Security

511

(3)

Temporary Assistance to Needy Families

514

(2)

Special Supplemental Nutrition Program for Women, Infants, and Children

516

(2)

Worker's Compensation

518

(2)

Consumer Bill of Rights

520

(3)

Consumer Credit Protection Act

523

(2)

Usury Laws

525

(6)

Entrepreneurship: The World of Business

Introduction: Entrepreneurship

531

(4)

How Businesses Are Run

535

(56)

Overview: Business Organization

535

(2)

Types of Businesses

Corporation

537

(8)

Board of Directors

539

(1)

Limited and Unlimited Liability

540

(2)

Multinational Corporation

542

(3)

Partnership

545

(2)

Franchise

547

(2)

Sole Proprietorship

549

(2)

Independent Contractor

551

(2)

Nonprofit Organization

553

(5)

Charity

556

(2)

Basic Business Concerns

Starting a Business

558

(3)

Business Plan

561

(2)

Management

563

(2)

Risk Taking

565

(2)

Venture Capital

567

(1)

Small Business Administration

568

(3)

Creating Products and Services

Product Development

571

(2)

Brand

573

(2)

Manufacturing

575

(3)

Mass Production

578

(1)

Outsourcing

579

(2)

Quality Control

581

(5)

Total Quality Management

583

(3)

Product Liability

586

(2)

Customer Satisfaction

588

(3)

Attracting Customers

591

(32)

Overview: Marketing Mix: Product, Price, Place, Promotion

591

(2)

Marketing and Advertising

Market Research

593

(2)

Advertising

595

(3)

Mass Marketing

598

(2)

Niche Marketing

600

(2)

Direct Mailing

602

(3)

Bringing the Product to the Customer

Distribution

605

(2)

Pricing

607

(3)

Selling

610

(2)

Retailing

612

(2)

E-commerce

614

(4)

Web Management

616

(2)

Public Relations

618

(5)

Money Management

623

(24)

Overview: Accounting

623

(3)

Cash Flow

626

(1)

Costs of Production

627

(3)

Cost-Benefit Analysis

630

(1)

Inventory Control

631

(3)

Investment Management

634

(2)

Business Financing

636

(2)

Financial Statements

638

(3)

Depreciation

641

(2)

Trade Credit

643

(1)

Dividends

644

(3)

Working with Employees

647

(20)

Overview: Hiring and Managing Employees

647

(2)

Job Applications

649

(2)

Human Resources

651

(3)

Payroll

654

(2)

Cost-of-Living Adjustment

656

(2)

Employee Benefits

658

(2)

Equal Opportunity

660

(2)

Ergonomics

662

(2)

Stress Management

664

(3)

Business Ethics and the Law

667

Overview: Business Ethics

667

(2)

Business Laws

669

(3)

Bait and Switch

672

(2)

Pyramid Scheme

674

(2)

Identity Theft

676

(1)

Insider Trading

677

(2)

Better Business Bureau

679