Download Unit 1 Review

Unit 1 Review
LEARNING TARGET: I WILL REVIEW UNIT 1 IN
PREPARATION FOR AN UPCOMING EXAM.
Most millionaires . . .

Are well educated

Work long hours

Do not inherit their wealth

Attended public school

Drive used cars/cars under 30K

Work in ordinary fields/industries

Are self employed (entrepreneurs)

Stay married
Education, salary and
investment

College graduates earn far more than high
school gradates

Buying and holding stock over the long term
has a higher return than constant trading

Over the long term, the stock market has the
highest ROI

Saving small amounts early can earn a higher
return than saving larger amounts later
Rules for Improving Your
Financial Life
1.
Get a good education.
2.
Work long, hard, and smart.
3.
Learn money-management skills.
4.
Spend less than you could spend.
5.
Save early and often.
6.
Invest in common stocks for the long term.
7.
Gather information before making decisions
The Handy Dandy Guide
to Economics
Economics is the study of choice under conditions of
scarcity.
 Scarcity Exists
 Scarcity makes people choose.
 All choices involve opportunity cost.
 People respond to incentives in predictable ways.
 People create economic systems that influence
choices and incentives.
 People gain when they trade voluntarily.
 People’s choices have consequences in the
future.
Economic Resources*
4 categories of economic resources

Land : resources that come from nature

Labor: physical effort of workers

Capital: tools and manufactured goods used
to make other goods
(physical/financial/human)

Entrepreneurship: risk taking, innovation and
the organization of resources for production
PACED Decision Making
Model

Define the PROBLEM.

List your ALTERNATIVES.

State your CRITERIA.

EVALUATE your alternatives.

DECIDE!