P. Y.F. ("Pay Yourself First") P. Y.F. stands for "pay yourself first," and
it's a very simple, effective idea. You don't
have a choice about paying taxes. Yes, you
can control the amount to some degree,
but the government still gets its taxes.
P. Y.F. is the secret to getting what you
want and becoming a disciplined saver.
Saving is simply setting aside money to
spend later. It's the same technique the
government uses to collect income taxes
on a regular basis, although most people
never think of it that way. It's a simple
trick almost every self-made
wealthy person uses, and may
also be one your parents use to
save.
P. Y.F. (pay yourself first) fol-
lows the same principle: don't give your-
self a choice. Make it a regular part of
your budget. Think of it as a bill you owe
to yourself. Why? Because it's the P. Y.F.
money in your plan that helps you reach
your goals. Why not begin today to save
10%, or just one thin dime, from every
dollar you get?
25 heurs I week
Assignment 3.2
Create Your Own Budget
Budget for December
#900
Money coming in:
Work (after taxes)
Gifts/Allowance
Other
Total Income
#1900
Money going out:
Fixed Expenses
PYF
Car payment
Auto insurance
Total Fixed Expenses
Variable Expenses
Gas
Food
Clothing
Fun stuff

Alandowner entered into a written agreement with a real estate broker whereby the broker would receive a commission of 10% of the sale price if he procured a "ready, willing, and able buyer" for the landowner's property and if the sale actually proceeded through closing. the broker found a buyer who agreed in writing to buy the property from the landowner for $100,000, the landowner's asking price. the buyer put up $6,000 as a down payment. the agreement between the landowner and the buyer contained a liquidated damages clause providing that, if the buyer defaulted by failing to tender the balance due of $94,000 at the closing date, damages would be 10% of the purchase price. the landowner included that clause because she was counting on using the proceeds of the sale for a business venture that would likely net her at least $10,000. the buyer became seriously ill and defaulted. when he recovered, he demanded that the landowner return his $6,000, and the landowner refused. the broker also demanded the $6,000 from the landowner and was refused. the broker and the buyer filed separate suits against the landowner, with the buyer pleading impossibility of performance. the two cases are consolidated into a single case. how should the court rule as to the disposition of the $6,000?

Jennifer purchased a house in a brand new development in the outskirts of town. when her house was built, the nearest fire department was nearly 20 miles away. as her neighborhood developed, the density of the community called for a new fire department 1.5 miles away. what effect will the new fire station have on her homeowners insurance premium? a. a new fire department will be more demanding on local taxes. her annual premium will go up. b. the location of a fire department has no bearing on the value of her house. her annual premium will stay the same. c. the new fire department will reduce the risk of financial loss in her home. her annual premium should decrease. d. with a fire department so close (less than 5 miles), financial risk on jennifer’s home practically disappears. she will not need to pay insurance anymore.

Which of the following statements is (are) true? i. free entry to a perfectly competitive industry results in the industry's firms earning zero economic profit in the long run, except for the most efficient producers, who may earn economic rent. ii. in a perfectly competitive market, long-run equilibrium is characterized by lmc < p < latc. iii. if a competitive industry is in long-run equilibrium, a decrease in demand causes firms to earn negative profit because the market price will fall below average total cost.