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Consumer Economics
Unit 2 Outline
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Unit 2




Resources can be used in many ways and understand the costs of alternative uses


Essential Questions

1. What are the advantages and disadvantages of various investment strategies available  to individuals?

            2. How does self-interest influence economic decisions?



A                                             B                                             C

Passbook Savings             Golden Rule                             Capital

Certificate of Deposit       Silver Rule                                IPO           

MoneyMarket                  Load fund                                 Simple interest

Common stock             No load fund                                  Capital loss

Preferred stock                 Yield                                          Shares

Collectibles                        IRA                                          Dividend

RealEstate                        Roth IRA                                 Stock split

Mutualfund                                                                        401k                                   

                                                                                           Borrowing on the margin

Bonds                               Compound Interest                   Short sell

Government bonds          Rule of 72                                  Price Earnings Ratio (P/E Ratio)

Corporate bonds              Rate of Return                Diversification           

Bond Rating                    Risks: Inflation                             Assets

InsiderTrading                             Market                             Liabilities

Capitalgains                                 Financial                           BearMarket    

NYSE                                            Liquidity                           Bull Market










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