How did Lawn Boy diversify his business?
His workers also cleaned pools, trimmed shrubs, edged sidewalks, and cleaned garages in addition to mowing lawns.
What capital resource did Lawn Boy get as a present from Grandma for his birthday?
Lawn Mower
What does it mean to have seasonal employment?
It means to work only during a specific season and not all year.
Why did Arnold lack the ability to pay Lawn Boy in cash?
He had Liquidity (cash flow problem-all of his cash was in stocks)
Lawn Boy could have hung out with his best friend Allen and had fun rather than mow lawns. The next best alternative that you give up when making a choice is known as what?
Opportunity cost
How did Lawn Boy boost his productivity?
He improved his knowledge about mowing, He was more efficient, he increased his labor and capital supply, he hired more workers and used more machines
Paqual wearing a headlamp to work at night is an example of "what at its finest!" according Arnold.
Entrepreneurship
A stock that is sold for less than $5 per share is known as what kind of stock?
Penny stock
What do you call an investment that is similar to an IOU, where you loan money and earn interest and the principal is returned upon maturity of the investment?
bond
What are the factors of production? (4 of them)
Land, labor, capital and entrepreneurship
What do you call the ratio of output per worker per period of time?
Productivity
Owning shares in a company means one owns what?
stocks
Why had the supply of lawn workers in Lawn Boy's neighborhood decreased?
Other kids were at camp and the boss of the previous lawn service ran away with someone's wife.
What did the Memorial Wooden Container Corporation Make?
Coffins
Which side of the circular flow model was Lawn Boy on when he mowed lawns?
business
Arnold offered to trade his stockbroker services for lawn services and invest money for Lawn Boy. What is the term for this exchange?
Barter
According to Arnold, what do responsible business owners pay?
taxes, wages, and bonuses to seasonal employees
What do you call the likelihood of loss?
risk
What are two characteristics of demand?
willingness and ability to pay
How did Arnold help Lawn Boy expand his business?
He introduced him to Pasqual, who did work and provided additional workers.
What was Lawn Boy producing?
Lawn mowing and additional lawn care and cleaning
Why were the neighbors willing to hire Lawn Boy?
He was a kid and considered safe. His prices were cheap.
What investment in capital goods did Arnold make on Lawn Boy's behalf so that the lawn crews could stay in contact?
Cell Phones
When stocks are sold at a price higher than what the initially paid, what do you call the earnings?
Capital gains
Investors should be careful about penny stocks because they are considered what?
High Risk
What are two side of the circular flow Model?
Households and businesses