Homework: Impact of Economics on Daily Living
Skill(s) Being Assessed: Problem Solving
i. Criteria for Success: In this homework, you will:
ii. Identify a relevant economic concept and describe how it applies to the scenario.
iii. Summarize the change in expenditures between budgets.
iv. Record the ways in which economic trends impacted personal income and consumer prices.
v. Explain the rationale for budget decisions made in response to economic changes.
vi. Explain an additional economic trend or change from within the last year and how it has impacted your personal life and finances.
What to submit/deliverables: A completed Homework 1 template, in Word document form.
What is the value of doing this homework? Economic trends and events in the world have real impacts on your daily life. This could take the form of a new technology that increases the demand for workers in a certain field, the amount of economic growth for a country affecting the ability (or willingness) of employers to increase wages, or even trade decisions between two countries that cause price of some everyday goods to fluctuate.
Economic impacts require you to make decisions on how to allocate resources and effectively budget, and use critical thinking strategies to help you navigate the world of finance and economics. Throughout the previous weeks of this course, you have learned foundational economic concepts, basic personal finance considerations, and problem solving strategies. In this homework, you will apply all of these to help a friend communicate her budgeting decisions to her family.
Your goal for this homework is to: Build your problem solving skill by articulating how economics have real impacts on families and their budgets. You will apply decision making and critical thinking strategies to explain how economics impacts a friend's personal budget decisions.
Steps to complete: In Week 4, submit your homework in BlackBoard by following these steps:
Step I: Read the scenario in the Homework 1 Template and preview the questions that follow.
Scenario: A friend who knows that you are learning problem solving skills and economics has come to you for advice. At the beginning of this year, rent and the price of imported food rose. At the same time, prices for domestic food dropped. The family's income stayed the same, but because of these economic changes, they had to make changes to their yearly budget.
Your friend's family is unhappy about the lifestyle changes that your friend has chosen. Your friend knows that you are studying personal finance and have asked you how to explain to her family what has happened to their spending. She has brought with her their family budget from last year, as well as their current budget for this year.
Step II: Identify one relevant economic concept that applies to the scenario and describe how it applies. (Question 1)
Step III: Summarize how expenditures changed between budgets. Make sure to address how expenditures changed (or did not change). (Question 2)
Step IV: Describe the economic trends that created the need for a change in expenditures. Make connections to the economic concepts you have learned. (Question 3)
Step V: Explain the rationale for your friend's budget decisions to her family. Address all changes (or non-changes) in expenditures and discuss long term effects. (Question 4)
Step VI: Reflect on how changes in economic variables may impact your personal life and finances. (Question 5)
Step VII: After completing all questions in the Homework 1 Template, save your responses as a Word document.
Format your homework according to the following formatting requirements:
i) The answer should be typed, using Times New Roman font (size 12), double spaced, with one-inch margins on all sides.
ii) The response also includes a cover page containing the title of the homework, the student's name, the course title, and the date. The cover page is not included in the required page length.
iii) Also include a reference page. The Citations and references must follow APA format. The reference page is not included in the required page length.
Attachment:- Economic-Impacts-Template.rar