Brittany Hayslett Assignment 1 on Economic Basic

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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) Create a budget because if I make a budget, then I can have extra money for myself. I will know how much to spend. I can keep track of my current spending and and make sure I didn't go over limit. Budgets are necessary for financial health. Plan for retirement because I wont have to worry about money. I would start off small and increase each month. The sooner I start saving, the more time my money will grow. Retirement is so expensive. 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) T-shirt Cell phone 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) babysitter tutor 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 can decrease the value of money over time. Inflation is when the value of money goes down, so that you can't get as much for your money as you could in the past. If inflation is increasing, the value of money is going down. 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) 6. Explain which economic system (market, planned, mixed, or traditional) you think is best for
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