Assignment 1 Essay

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Assignment 1: Economic Basics (24.0 points) 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) Financial planning skills help u create a budget and save money. These things are important to me because I have trouble both saving money and creating budgets. Whenever I get money I always want to spend it on useless items. I'm hoping these skills will help me with that problem. 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) Books and food. 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) Tutoring and lawn mowing. 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 goes up, then your money's value goes down. For example, you might go to the store one day and buy a toothbrush for a $1.50. If you go again a few weeks later and the toothbrush is now $2.00 then inflation has increased. 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) One economic factor I would research would be the economy's GDP. That way I would know how well they were doing, and if I should be moving there. Another factor I would check is the economy's system. Say if they had a mixed economy I would consider it more than if it was a planned

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