- 4-3.1: What is the purpose of a financial plan?
- 4-3.2: List the five steps in creating a financial plan.
- 4-3.3: What types of information or documents are needed to create a finan...
- 4-3.4: What information should you be able to learn from your personal bal...
- 4-3.5: Why are personal goals set before financial goals? How do financial...
- 4-3.6: How are short-term goals different from long-term goals?
- 4-3.7: What does the term delayed gratification mean?
- 4-3.8: How often should you review your financial plan at a minimum?
- 4-3.9: Why might you choose a financial planner who does not work on commi...
Solutions for Chapter 4-3: Personal Financial Planning
Full solutions for Personal Financial Literacy | 1st Edition
the ability to produce a good using fewer inputs than another producer
total revenue minus total explicit cost
a situation in which exports equal imports
a market with many buyers and sellers trading identical products so that each buyer and seller is a price taker
the offset in aggregate demand that results when expansionary fiscal policy raises the interest rate and thereby reduces investment spending
the uncompensated impact of one person’s actions on the wellbeing of a bystander
income elasticity of demand
a measure of how much the quantity demanded of a good responds to a change in consumers’ income, computed as the percentage change in quantity demanded divided by the percentage change in income
an increase in the overall level of prices in the economy
the process by which workers find appropriate jobs given their tastes and skills
the political philosophy according to which the government should punish crimes and enforce voluntary agreements but not redistribute income
marginal product of labor
the increase in the amount of output from an additional unit of labor
a situation in which a market left on its own fails to allocate resources efficiently
the costs of changing prices
the total income in the economy that remains after paying for consumption and government purchases
a monopoly that arises because a single firm can supply a good or service to an entire market at a smaller cost than could two or more firms
claims that attempt to prescribe how the world should be
the study of government using the analytic methods of economics
the percentage of the population whose family income falls below an absolute level called the poverty line
price elasticity of supply
a measure of how much the quantity supplied of a good responds to a change in the price of that good, computed as the percentage change in quantity supplied divided by the percentage change in price
a worker association that bargains with employers over wages, benefits, and working conditions