Economics Basics
Assignment 1: Economic Basics
(24.0 points)
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)
Making choices about how to spend money responsibly... I know how I am with money. When I get money I automatically want to spend it, but I have gotten really better at it since I’ve gotten older.
Set financial goals… I think it is a great idea to start setting financial goals early in life, so by the time you have to start paying bills and taxes, you will already know how to do financial stuff.
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)
Clothes and food
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 Cleaning people’s houses
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)
When the value of dollars go down, you can’t get as many goods or services for your dollar
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)
Fuel prices- if the fuel prices are high it would make it difficult to travel, or it would result in losing a tremendous amount of money.
Transportation- if there is a poor transportation system it will make it very difficult to get to and from places. Possibly playing a huge factor in getting a job
Demand for labor- if there is a low demand for labor it will be very hard to find a job. If you cannot find a
(24.0 points)
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)
Making choices about how to spend money responsibly... I know how I am with money. When I get money I automatically want to spend it, but I have gotten really better at it since I’ve gotten older.
Set financial goals… I think it is a great idea to start setting financial goals early in life, so by the time you have to start paying bills and taxes, you will already know how to do financial stuff.
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)
Clothes and food
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 Cleaning people’s houses
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)
When the value of dollars go down, you can’t get as many goods or services for your dollar
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)
Fuel prices- if the fuel prices are high it would make it difficult to travel, or it would result in losing a tremendous amount of money.
Transportation- if there is a poor transportation system it will make it very difficult to get to and from places. Possibly playing a huge factor in getting a job
Demand for labor- if there is a low demand for labor it will be very hard to find a job. If you cannot find a