Assignment 1: Economic Basics
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)
Two skills that important with financial planning are, first is create a budget. It is vital in keeping your financial house in order. Before you begin to create your budget it is important to realize that in order to be successful you have to provide as much detailed information as possible. Ultimately, the end result will be able to show where your money is coming from, how much is there and where it is all going. Second is set financial goals, it is important because it helps to manage money. Setting your financial goals puts you in charge of your money and your life.
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)
-Shoes, I bought one shoe from the mall.
-Bags, I bought a bag for put my staff in.
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)
-KFC, I went to buy some chicken and hamburger.
-Vodafone I using Vodafone’s Simcard for communication.
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)
Money makes it much easier to measure the value of a commodity and compare it to others.
Without money, it would be difficult for consumers to know which producer was offering the best deal on a certain product. It would also be more difficult for a producer and consumer to agree on a price. They might have to negotiate a deal separately for each exchange.
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...