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Microeconomics. Households and Businesses. Household Income Sources. Source of income %. Dividends. 1.7. Interest. 4.9. Proprietor’s Income. 8.4. Rental Income. 11.1. Social Security. 13.4. 64.7. Transfer Payments. -4.3. Wages and Salaries. Average Household Incomes. - PowerPoint PPT Presentation
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Dividends
Interest
Proprietor’s Income
Rental Income
Transfer Payments
Wages and Salaries
1.7
4.9
8.4
11.1
13.4
64.7
Source of income %
Social Security
-4.3
All Households
Headed by married coupleHeaded by female – husband gone
Household head 25-34 years old
Household head HS grad
Household head BA degree
44,779
43,318
29,307
62,405
36,835
68,728
Characteristic Average Income
Household head 65+
23,787
Savings
Spending
Taxes
79
19
2
Services
Durable Goods
Non-durable Goods
59
29
12
Item Price Utility
Pants $60 125
Shirt $40 100
Wallet $20 50
• Business– Organization established to produce and
sell goods and services.
Overview of Business10-3a
TABLE 10-3The Ten Largest U.S. Corporate Employers: 2001
Bill’s Pizza
Bill and Ted’s Pizza and Sub Shop
proprietorship
partnership
corporation
_______
_______
_______
Types
Number of Owners
proprietorship
partnership
corporation
______
______
______
Liability Unlimite
d?
Limited?
proprietorship
partnership
corporation
71.6
8.5
20.0
4.4
12.0
83.6
Type Number
Revenue
What are they?
How can you get one?What are:NYSE - NASDAQ -Dow Jones -
Dow Jones Companies
1McDonalds
2 IBM
3American Express
4Kraft Foods
5Pfizer
6Chevron
7Coca-Cola
8Johnson and Johnson
9Boeing
10Exxon Mobil
11Verizon
12Procter and Gamble
13Wal-Mart
14AT&T
15DuPont
16 Intel
173M
18Caterpillar
19Home Depot
20Microsoft
21United Technologies
22Merck
23Travelers
24Walt Disney
25General Electric
26JP Morgan Chase
27Alcoa
28Cisco Systems
29Hewlett-Packard
30Bank of America
What are they?
What are the differences between:
Conglomerate - Vertical -Horizontal –Holding Company -
mergers?
Holding Company Example10-3g
FIGURE 10-2The Alltown Bank Holding Company
Ch 10 TRUE-FALSE QUESTIONS
1.The number of single-person households in the U.S. has been decreasing in recent decades.
2.Households headed by college graduates have among the highest average incomes in the U.S.
3. A durable good has a useful lifetime of more than one year.
4. Maximizing economic well-being by an individual requires balancing the costs and benefits of different actions that could be taken.
5. To maximize the satisfaction from consuming several different goods, expenditures must be allocated toward goods that have the lowest prices.
6. A sole proprietor and a general partner are both subject to unlimited liability.
7. Proprietorships generate the smallest percentage of total receipts of the three legal forms of business. The majority of total business receipts in the U.S. goes to corporations.
8. Most U.S. businesses are organized as corporations.
Ch 10 TRUE-FALSE QUESTIONS
9. A conglomerate merger occurs when one firm in a market acquires a competing firm in the same market.
10.A furniture and sofa manufacturer buying a lumber or fabric mill is an example of a vertical merger.
11.Profit or loss is what is left for a business after it subtracts its costs from the revenue received from selling its product.
12. Profit or loss is equal to revenue divided by costs.
Ch 10 TRUE-FALSE QUESTIONS
