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)
Financial Planning can help me understand taxes and finance and spend money wisely. Spending money wisely is important to me because I have a small allowance that I don't want going to waste. I want to know that I'm getting a good deal and buying a good or service that is useful for me. I also want to understand taxes and finance because I will be using them later in 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)
A shirt and a car
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)
Car wash and housework
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 makes money an unstable form of storing value. When money inflates, it loses value and less can be bought with the same amount of money after inflation than before inflation. If inflation is increasing, it is wise to invest money in investments that are likely to increase in value.
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)
6. Explain which economic system (market, planned, mixed, or traditional) you think is best for consumers. Describe at least one reason why you think this system is best for consumers. (4-7 sentences. 3.0 points)
7. In capitalism, most businesses have a profit...