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. Use credit cards responsibly and plan for retirement. These things are important to me because I wouldn’t want to max out any of my credit cards. Planning for retirement is important to me because when I become elderly I want to be able to relax instead of working.
2. List two examples of goods you have purchased in the past or may purchase in the future. Two goods I have purchased in the past are food and clothes.
3. List two examples of services you have purchased in the past or may purchase in the future. Two services I have purchased are getting my hair done and fixing my computer. 4. One of the functions of money is as a store of value. How does inflation affect money’s ability to store value? Inflation can decrease the value of money over time. If inflation increases, you can’t get as much for your money as you could before. It makes more sense to invest the money in investments that are likely to increase in value.
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.
If I were to move to a new country, I would want to know their economic background. I would want to live in a country with a strong economy. So that means I would have to look for its GDP, unemployment rate, price stability and inflation, and spending power. I would want to check the GDP to see if it is high or not. I would want to check the unemployment rate to see if there are a good amount of jobs available to me. I would want to check the price stability and inflation to see if the prices are stable and inflation is low. Lastly, I would want to check the spending power of an economy to see if it is high.
6. Explain which economic system (market, planned, mixed, or traditional) you think is best for consumers. Describe at least one reason why you think this system is best for consumers. I think consumers are best with a mixed economy. This is the best choice because the U.S is a democracy. By us being a democracy, the consumers should have a voice as well as the government.
7. In capitalism, most businesses have a profit motive. Describe at least one reason that businesses with a profit motive may be helpful for society and at least one reason that they may be harmful for society. Then, explain whether you think profit motive is a good thing or a bad thing for society.
Businesses with a profit motive may be helpful because it rewards businesses that are efficient and don’t waste money or time. However, it might not be helpful because it mainly focuses on making money rather that thinking of the consumers first.
8. Choose a well-known company that you know of, and describe its direct and indirect competitors. Describe at least three direct competitors and three indirect competitors. A well-known company that I know of is McDonald’s. Some of its direct competitors are Burger King, Checker’s, and Wendy’s. Some indirect competitors are Kroger, Rainbow, and Ross.
9. Imagine that you are buying a new computer and comparing different brands and prices. Describe at least two non-price competition factors you might consider when making your decision. Two non-price factors I might consider is quality and the time it takes for it to come out.
10. Describe a real or made up but realistic example of a product that went through a time of scarcity, when demand was greater than the supply. What is the product, and why do you think it became scarce? What happened to the price of the product when it was scarce? The product is oil and it’s scarce because it’s a natural resource that we are using up. The price is very high because it’s so scarce.
11. Describe a product, and then give an example of a time when the demand for this product might be high and the demand for this product might be low. When Michael Jordan comes out with a new pair of shoes, for the first few weeks, the demand will be high. Then, after a month of two, the demand will go down.
12. Describe an example of a product that has highly elastic demand. Describe at least two factors that make this product’s demand so elastic. Shoes have a high elastic demand. Two factors that make this product so elastic are competition and time.