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P-E RATIO: Also termed the price-earnings ratio, this is the ratio of the current price for one share of corporate stock to the earnings (profit) per share of stock. This is used by many financial analysts and investors as an indicator of a company's performance and potential for future growth. A relatively high price-earnings ratio suggests that investors think the company has a great deal of future growth potential. It can also be a sign, however, that the company is seriously overpriced and due for a big drop.

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Lesson 2: Economic Science | Unit 4: Science and Practice Page: 13 of 20

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An example of how the scientific method works:
  • You suspect that a relationship exists between course grades and where students are seated in the class.
  • Specifically, you think that students who sit closer to the front of the class receive higher the grades.
Three forms of our hypothesis:
General:
  • Students seated closer to the front receive higher grades.
A More Specific Form:
  • If students sit on the front row, then they receive As-- if they sit on the second row, then they receive Bs-- etc.
Using An Equation:
  • G = a + bD, where b is negative, meaning students seated closer (small D) receive higher grades (large G).
  • Key is that we can compare hypothesis with data.

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BALANCE ON SERVICES

A subset of the balance of payments current account that records the difference between the payments received for exports of services to other nations and the payments made for the imports of services from other nations. The flow of payments is for intangible services, not for physical or tangible goods. The balance on services is thus appropriately divided into services exported and services imported. Two other subsets of the current account include the balance on merchandise trade and unilateral transfers. The commonly termed balance of trade is the sum of the balance on merchandise trade and the balance on services.

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PURPLE SMARPHIN
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Today, you are likely to spend a great deal of time flipping through mail order catalogs wanting to buy either a birthday gift for your father that doesn't look like every other birthday gift for your father or a green fountain pen. Be on the lookout for vindictive digital clocks with revenge on their minds.
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Cyrus McCormick not only invented the reaper for harvesting grain, he also invented the installment payment for selling his reaper.
"The greatest things ever done on Earth have been done little by little. "

-- William Jennings Bryan

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