1. Mystery nations revealed: Country A: Argentina Population: 37,384,816 Per capita GDP: $12,900 Life expectancy: 75.26 yrs Literacy rate: 96.2% Infant mortality rate: 17.75/1000 Country B: Japan Population: 126,771,662 Per capita GDP: $24,900 Life expectancy: 80.8 yrs Literacy rate: 99% Infant mortality rate: 3.88/1000 Country C: Nigeria Population: 126,635,626 Per capita GDP: $950 Life expectancy: 51.07 yrs Literacy rate: 57.1% Infant mortality rate: 73.34/1000 Country D: Russia Population: 145,470,197 Per capita GDP: $7700 Life expectancy: 67.34 yrs Literacy rate: 98% Infant mortality rate: 20.05/1000 Country E: Singapore Population: 4,300,419 Per capita GDP: $26,500 Life expectancy: 83.35 yrs Literacy rate: 93.5% Infant mortality rate: 3.62/1000

2. The countries, richest to poorest: 1.Singapore (E) 2.Japan (B) 3.Argentina (A) 4.Russia (D) 5.Nigeria (C)

3. Factors contributing to long-term economic growth: (5/18) Greater economic freedom High investment levels in physical and human capital Strong incentives to save and invest Competitive markets Low inflation Political stability Free trade

4. Countries with highest levels of economic freedom, 2012 1. Hong Kong 2. Singapore 3. Australia 4. New Zealand 5. Switzerland 6. Canada 7. Chile 8. Mauritius 9. Ireland 10. United States

5. Countries with lowest levels of economic freedom, 2012 171. Democratic Republic of Congo 172. Burma 173. Eritrea 174. Venezuela 175. Zimbabwe 176. Cuba 177. North Korea

6. Previous close: yesterday’s closing price Open: today’s opening price Market cap: $80.39 billion = market value of outstanding shares (# of shares x share price) Average volume: average number of shares traded per day 52-wk range: range of prices over past year P/E: price to earnings ratio. Ex: P/E of 32.47 means that people are willing to pay $32.47 for $1 of current company earnings. Dividend yield: Annual dividend/current stock price. Ex: Starbucks pays out $0.80 per share in dividends, and people are paying $54.88 per share.

7. Basics about the stock market (5/18) 1.Buy low, sell high. Example 1: I bought 100 shares of AAPL @ $93.88 = $9,388 Suppose the price per share increased to $102.56. I sell all my shares. 100 x $102.56 = $10,256 In the end, I made $10,256 - $9,388 = $868 profit Example 2: Same AAPL shares. Price falls to $89.25, and I sell all shares. Overall loss = $9,388 – $8,925 = $463

8. 2. It costs $5 for each transaction. Example 1 from above: real profit = $868 - $10 ($5 for the initial purchase, $5 for the sale) = $858

9. 3. You can borrow money to buy stock - $100,000 is your own, can borrow another $100,000

10. 3. Keep an eye on the news for each company you’ve invested in. It’s usually the best indicator of how a stock will perform each day. 4. Short selling (do this if you think the price of stock will FALL): Step 1: I “sell” 100 shares of Amazon at a price of $710.66. Step 2: Price falls. Step 3: I “buy” 100 shares of Amazon at a price of $600. End result: I bought at $600, sold at $710.66 = 100 x $110.66 = $11,066 profit

11. Other stuff: The stock exchanges: New York Stock Exchange (Ford, GE, Nike, Home Depot) Nasdaq (Apple, Intel, Facebook, Google) Indexes (measuring how markets are doing): Dow Jones Industrial Average (mainly NYSE companies) – 30 large companies Nasdaq (only measures Nasdaq companies) S&P 500 (both NYSE and Nasdaq common stock) – 500 large companies