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October 18, 2018 

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SAVING: The after-tax disposable income of the household sector that is not used for consumption expenditures. In general terms, saving is the use of income to purchase legal claims through financial markets rather than the direct purchase of physical goods and services. In the macroeconomic world modeled by the circular flow, saving is the diversion of household income away from consumption and into the financial markets. In this model, saving is a primary source of funds used for business investment expenditures for capital goods. Saving is also used to finance government expenditures.

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Lesson 11: Circular Flow | Unit 5: Real World Page: 22 of 22

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Government spending, purchases and transfer payments, is financed by indirect business taxes (IBT), Social Security taxes (SST), corporate profits taxes (CPT), personal taxes, and borrowing. Now Click

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POINT ELASTICITY

The relative responsiveness of a change in one variable (call it B) to an infinitesimally small change in another variable (call it A). The notion of point elasticity typically comes into play when discussing the elasticity at a specific point on a curve.

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ORANGE REBELOON
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Today, you are likely to spend a great deal of time strolling around a discount warehouse buying club hoping to buy either a flower arrangement for your aunt or a birthday greeting card for your uncle. Be on the lookout for defective microphones.
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John Maynard Keynes was born the same year Karl Marx died.
"Executives who get there and stay suggest solutions when they present the problems. "

-- Malcolm Forbes, business executive

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