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ACCOUNTING PROFIT: The difference between a business's revenue and it's accounting expenses. This is the profit that's listed on a company's balance sheet, appears periodically in the financial sector of the newspaper, and is reported to the Internal Revenue Service for tax purposes. It frequently has little relationship to a company's economic profit because of the difference between accounting expense and the opportunity cost of production. Some accounting expense is not an opportunity cost and some opportunity cost is does not show up as an accounting expenses.
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Lesson 17: Money | Unit 2: More About Money
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Page: 10 of 25
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- The four functions of money:
- Medium of exchange: money makes it easier to buy, sell, produce, and consume goods and services.
- Measure of value: prices are stated in terms of the monetary unit.
- Store of value: value can be stored over time with money.
- Standard of deferred payment: future payments are also in terms of the monetary unit.
- Using money as a medium of exchange eases the exchange process, makes it more efficient, and frees resources for production.
- Using money as the unit for prices gives a measure for value, that is, how much value we place on a good.
- Price inflation is the nemesis for the store of value function of money.
- Money is used as a standard for buying now and paying later.
- The four characteristics of money:
- Durable: It helps to retain value from one exchange to do the next and store value for future exchanges.
- Divisible: It lets us accurately match an amount of money to the precise value of a good.
- Transportable: It allows us to conduct exchanges far and wide, to go where we need to go for an exchange.
- Non-counterfeitable: It keeps the value of money from being diluted.
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AVERAGE VARIABLE COST Total variable cost per unit of output, found by dividing total variable cost by the quantity of output. When compared with price (per unit revenue), average variable cost (AVC) indicates whether or not a profit-maximizing firm should shut down production in the short run. Average variable cost is one of three average cost concepts important to short-run production analysis. The other two are average total cost and average fixed cost. A related concept is marginal cost.
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BLACK DISMALAPOD
[What's This?]
Today, you are likely to spend a great deal of time at a crowded estate auction hoping to buy either yellow cotton balls or a set of steel-belted radial snow tires. Be on the lookout for malfunctioning pocket calculators.
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This isn't me! What am I?
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It's estimated that the U.S. economy has about $20 million of counterfeit currency in circulation, less than 0.001 perecent of the total legal currency.
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"always remember an epitaph which is in the cemetery at Tombstone, Arizona. It says: „Here lies Jack Williams. He done his damnedest.¾ I think that is the greatest epitaph a man can have ‚ When he gives everything that is in him to do the job he has before him. That is all you can ask of him and that is what I have tried to do. " -- Harry Truman, 33rd US president
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RATS
Regression Analysis of Time Series (software)
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