Economic Basics

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 sentences.)

 

 

2. List two examples of goods you have purchased in the past or may purchase in the future. (Complete sentences are not necessary. )

 

 

3. List two examples of services you have purchased in the past or may purchase in the future. (Complete sentences are not necessary.)

 

 

4. One of the functions of money is as a store of value. How does inflation affect money’s ability to store value? (3 sentences.)

 

 

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 sentences.)

 

 

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 sentences.)

 

 

7. In capitalism, most businesses have a profit motive. Describe at least one reason that businesses with a profit motive may be helpful for society and at least one reason that they may be harmful for society. Then, explain whether you think profit motive is a good thing or a bad thing for society. (4 sentences.)

 

 

8. Choose a well-known company that you know of, and describe its direct and indirect competitors. Describe at least three direct competitors and three indirect competitors. (6 sentences.)

 

 

9. Imagine that you are buying a new computer and comparing different brands and prices. Describe at least two nonprice competition factors you might consider when making your decision. (2 sentences. )

 

 

10. Describe a real or made up but realistic example of a product that went through a time of scarcity, when demand was greater than the supply. What is the product, and why do you think it became scarce? What happened to the price of the product when it was scarce? (3 sentences.)

 

 

11. Describe a product, and then give an example of a time when the demand for this product might be high and the demand for this product might be low. (2 sentences. )

 

 

12. Describe an example of a product that has highly elastic demand. Describe at least two factors that make this product’s demand so elastic. (4 sentences.)

 

 

 

Banking

 

 

1. Visit the website of a large national bank, regional bank, or credit union, and use the information you find there to answer the questions below. EXAMPLE: Some large banks you might consider include Bank of America®, JPMorgan Chase®, Wells Fargo®, Citibank®, and U.S. Bank®.

 

 

1. What is the name of the bank or credit union? (Complete sentences are not necessary.)

 

 

1. List three facts about savings account options at the bank or credit union you chose. (3 sentences.)

 

 

1. List three facts about checking account options at the bank or credit union you chose. (3 sentences.)

 

 

1. Does this bank or credit union offer online banking? ((Complete sentences are not necessary.))

 

 

1. Would you be likely to choose this as your bank or credit union? Why or why not? List at least two reasons for or against choosing this bank or credit union. (3-6 sentences. 2.0 points)

 

 

1. Visit the website of a second large national bank, regional bank, or credit union, and use the information you find there to answer the questions below.

 

 

1. What is the name of the bank or credit union? (Complete sentences are not necessary.)

 

1. List three differences you found between the accounts and features this bank or credit union offers and the bank from question 1 above. (1-3 sentences.)

 

 

1. Which of the two banks or credit unions that you researched would you be most likely to choose to open an account with? Why? (2 sentences.)

 

 

1. What type of bank risk would worry you the most as an account holder? How should the bank protect itself against that risk? (2 sentences)

 

 

1. If you had a bank account, which two methods of completing transactions do you think you would use most frequently? Why? (2 sentences.)

 

 

1. In your Section_3 folder, navigate to and open the Example_Check_Register and Example_Bank_Statement, and then answer the questions below.

 

 

1. According to the bank statement, how many checks were written from this account during the statement period? (Complete sentences are not necessary.)

 

 

1. There are two differences between the bank statement and the check register. Describe each of them. (2 sentences) TIP: These are transactions that Jessie Robinson forgot to write down in the check register.

 

 

1. Do you think it is best to keep track of finances using a check register, a bank statement, or both? Why? (2 sentences)

 

 

1. List at least two non-discretionary expenses listed on the bank statement or check register. (1-2 sentences.)

 

 

1. List at least one discretionary expense listed on the bank statement or check register. (1-2 sentences.)

 

 

 

1. Describe at least one challenge of keeping a check register. (1-2 sentences.)