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ZERO COUPON BOND: Also termed a zero bond, a bond that does not pay interest, in which the return is generated by the difference between the purchase price and the face value paid at maturity. Because they do not pay interest, zero coupon bonds are sold at a discount. For example, a $10,000 zero coupon bond that matures in one year, would generate a 10% return if it sold at a discount of $9,000.

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Lesson 5: Market Demand | Unit 4: Determinants Page: 13 of 20

Topic: Ceteris Paribus Factors <=PAGE BACK | PAGE NEXT=>

Ceteris paribus is the notion that other things remain constant. We make this assumption because things other than price affect demand.
  • These other, ceteris paribus factors, give us useful analytical tools for examining demand and the market.
  • We can turn these factors off and on to better understand how the market works.
  • The ceteris paribus factors are called demand determinants.

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CENTRAL PLANNING

A system of extensive central government control of an economy, including organizing production and making allocation decisions. This was the popular method of allocating resources and answering the three basic questions of allocation under communism and socialism economic systems of the Soviet Union, China, and others during the 1950s, 1960s, and 1970s.

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Today, you are likely to spend a great deal of time looking for a downtown retail store hoping to buy either several magazines on home repairs or a remote controlled sports car with an air spoiler. Be on the lookout for spoiled cheese hiding under your bed hatching conspiracies against humanity.
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Sixty percent of big-firm executives said the cover letter is as important or more important than the resume itself when you're looking for a new job
"Always make a total effort, even when the odds are against you."

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