Assignment 1: Economic Basics
Save this file in your course folder, and name it with Assignment, the section number, and your first initial and last name. For example, Jessie Robinson's assignment for Section 1 would be named Assignment1JRobinson.
Type the answers to the assignment questions below. Use complete sentences unless the question says otherwise. You will have more than one day to complete an assignment. At the end of each day, be sure to save your progress.
Review Lesson 4 of the Course Overview for instructions about turning in your assignments.
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)
One example of an important thing that financial planning skills can help me do is create a budget. Creating a budget is extremely important to me personally because I see my grandparents trying to figure out how to pay for different things like taxes, bills, etc., and they always told me to make sure that I have a budget. I’ve been taught that you need to be organized with your money and making sure that everything is accounted for each week. Another example of an important thing that financial planning skills can help me do is saving and investing money. This is definitely important for me personally because I have a spending habit, and I need to get into a habit of making sure that I spend wisely and have limits on myself.
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)
Two examples of goods that I’ve purchased in the past are cupcakes and books.
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)
Two examples of services that I’ve purchased in the past are a math tutor and a uber (taxi).
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)
Inflation is when the value of a dollar goes down, so you can’t get as many goods or services for your dollar. Inflation affects money’s ability to store value by showing how weak a specific country is. A weak economy is shown through the characteristics of the increase in inflation and in unemployment.
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)
To decide a country’s strength or weakness, I would first look at the price stability in that specific country to research. If the price of goods and services stay the...