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PAR VALUE: The stated, or face, value of a legal claim or financial asset. For debt securities, such as corporate bonds or U. S. Treasury securities, this is amount to be repaid at the time of maturity. For equity securities, that is, corporate stocks, this is the initial value set up at the time it is issued. Par value, also called face value, is not necessarily, and often is not, equal to the current market price of the asset. A $10,000 U.S. Treasury note, for example, has a par value of $10,000, but might have a current market price of $9,950. The difference between par value and current price contributes to the yield or return on such assets. An asset is selling at a discount if the current price is less than the par value and is selling at a premium if the current price is more than the par value.
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Lesson 2: Economic Science | Unit 5: Cause and Effect
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Page: 17 of 20
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The purpose of science is to identify the fundamental, basic laws of nature that guide our every moves.- The purpose of the scientific method is to explain the world by identifying cause and effect.
- For every action there is a consequence. And for every consequence there is a cause.
The first step is to identify cause and effect links is correlation:- Correlation. If event A causes event B, then event A is correlated with event B. But, correlation does not mean causation. Two events can be correlated, without one causing the other. Note the fallacy of false cause.
- Time Proximity. Event A and event B must happen at about the same time.
- Time Sequence. Event A must precede event B. If event B occurs first, then it can't be caused by event A.
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DERIVATION, SAVING LINE A saving line, a graphical depiction of the relation between household sector saving and income, can be derived from the consumption line. The saving line can also be derived by plotting the saving-income information from a saving schedule or using the slope and intercept values of the saving function. However, derivation from the consumption line emphasis the connection between consumption and income--that the household sector uses a portion of income for consumption and a portion for saving.
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The portrait on the quarter is a more accurate likeness of George Washington than that on the dollar bill.
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"We may affirm absolutely that nothing great in the world has been accomplished without passion." -- Hegel
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TU
Total Utility
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