Economic Basics Essay

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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) Planning for emancipation- planning for emancipation can make for a better and easy future. Planning for emancipation will also help you learn how to make investments and save money. Create a budget- creating a budget will help you not spend more money than you have. Creating a budget will also help you stay out of debt. 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) Clothes and cds. 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) Movies and restaurant. 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) As inflation increases it requires more and more dollars to buy the same thing. Hence, the dollar is worth less. 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. 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) What has the unemployment rate been over the last 20 years? If the unemployment rate has been 5% or 6%, then there are an adequate

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