By McGraw-Hill Education
Reading necessities, scholar version presents concise content material of the coed version written at a decrease grade point, making it ideal for suffering readers and ELL scholars.
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Additional info for Economics Today and Tomorrow, Reading Essentials and Study Guide, Workbook
The New York Exchange Bond Market and the American Exchange Bond Market are the two largest bond exchanges. Bonds are sold over-the-counter and on the Internet. Mutual funds are another way in which people can invest in the stock market. With mutual funds, investment companies pool money from many investors. They invest that money in many different stocks, bonds, and other investments. By spreading the money over different investments, they decrease the risk of losing money. In other words, one stock may go down in value, but four others may go up in value in the same time period.
The benefit of borrowing is having the good or service now instead of later. The trade-off is spending more money in the form of interest to have that good or service immediately. Interest is money you could spend on other items. Only the consumer can decide whether the trade-off is worthwhile. Many Americans buy too many goods and services using credit and do not consider the interest they will have to pay. Remember that credit card companies, stores, and banks make money by lending money. Just because someone offers a person credit does not mean he or she should accept it.
2. What conditions must be met in order for a voluntary exchange to take place in the market? Study Guide 57 Name Date Class 7, • 1 The Law of Demand (page 171) Demand represents the goods or services that consumers are both willing and able to purchase at various prices. The Law of Demand explains how people react to changes in price. It states: As price goes up, quantity demanded goes down. As price goes down, quantity demanded goes up. In other words, more people will buy more of an item if the price is lowered.