Assignment 1: Economic Basics
1. Describe two examples of important things that financial planning skills can help you do, and explain why these things are important to you personally. (4-6 sentences. 2.0 points) Make choices about how to spend money responsibly, plan for retirement. Because, I will need to know how to plan later on in life with my finances. I will plan to retire once I reach that age.
2. List two examples of goods you have purchased in the past or may purchase in the future. (Complete sentences are not necessary. 0.5 points)An IPod and an IPhone.
3. List two examples of services you have purchased in the past or may purchase in the future. (Complete sentences are not necessary. 0.5 points)Babysitting and helping someone study for a test.
4. One of the functions of money is as a store of value. How does inflation affect money's ability to store value? (3-6 sentences. 2.0 points) If inflation is increasing, which means the value of money is going down; it may make more sense to invest the money in investments that are likely to increase in value. You'll learn more about inflation and investing later.
5. Imagine that you are considering moving to a new country and looking for a job there, but you first want to make sure the country has a strong economy. Describe at least three economic factors that you would want to research as evidence of the economy's strength or weakness, and explain how each factor would affect your decision to move there. (4-6 sentences. 3.0 points)Location, being aware of each market you're a part of as a consumer helps you understand your role in the economy of that market.Commdity, his stock market is a market focused on a single type of commodity called stocks. You'll learn more about stocks later. Consumer, Markets may be categorized very specifically, such as the retiree market and the teenage market.
6. Explain which economic system (market, planned, mixed, or traditional) you...