Economic Changes

 Economic Changes and Agility

Week 3 Assignment Template

ECO

1

100

ECO1100

1

2

Budget 1

5,500

11.0

5,000

10.0

100

Budget 2

Dollars ($)

Percent (%)

Income

100

Expenditures

Housing

Food

Utilities

10.0

Transportation

7,000

Taxes

Debt Payments or Savings

Soc. Security, Personal Ins., 401k

5,000

Health Care

Entertainment

Apparel

Misc

Personal Care

600

1.2

2,000

Total

100

Scenario

Your child is starting a two-year culinary program at community college this year and was awarded a small grant to cover some of the cost. You need to adjust your budget for this additional expense, as well as consider and project future economic trends. At the beginning of this year, the cost of housing for example rose as there were more renters than rental units. Additionally, certain trade decisions have made some imported item more expensive than the previous year. The family’s income changed slightly, but because of these economic changes, will need to make changes to the yearly budget. You will need to analyze spending in the prior year (Budget 1) and the current budget (Budget 2) for this year. Your family might not be happy with some of your decisions about where to spend less or where to spend more. So, you also need to be prepared to explain the reasoning for your decisions to them.

Questions

1. In the first four weeks of this course, you have learned about economic concepts such as supply and demand, scarcity, tradeoff decisions, international trade, opportunity cost, and compound growth. Think about the economic concepts you encountered in the readings for the first three weeks, or those you know about from previously learning or research. These could include concepts such as supply and demand, scarcity, tradeoff decisions, inflation, and opportunity costs. Choose at least one economic concept and describe how it is relevant to the scenario and your two budgets.

[Write your response to question 1 here.]

2. How did expenditures change between budgets? Which expenditures changed the most? Which expenditures changed the least? Which stayed the same? Summarize the change in expenditures between budgets.

[Write your response to question 2 here.]

3. What were the economic trends that created the need for your family to change their expenditures? What can you infer about the connection between prices and expenditures, based on the economic concepts you have learned? Describe the economic trends that created the need for a change in expenditures.

[Write your response to question 3 here.]

4. Think of a way to explain the rationale for your budget decisions to your family. Some questions you could think about to help create your explanation are:

· Why did you decide to buy less food?

· Why did your housing costs increase?

· Why did you decide to cut the most from entertainment and apparel?

· Why couldn’t you change the amount you spent on transportation (this likely includes your car payment)?

· What other areas had to remain the same?

· Why did you decide to reduce the amount that you paid towards existing debt or put into savings, and what will the long-term effects of that be?

[Write your response to question 4 here.]

5. In our personal lives, we sometimes need to react to changes in our economic environment. Thinking about your own budget, describe how a change in an economic variable (such as a change in income, employment, interest rates, or prices) from within the last year either has impacted or could impact your personal life and finances. If the trend continues over the next year or two, what predictions could you make about further impacts to your personal life and finances?

[Write your response to question 5 here.]

image1

IMPACT OF ECONOMICS ON DAILY LIVING

Overview

Global economic trends and events have real impacts on your daily life: a new technology increases the demand for workers in a certain field, a country’s economic growth affects the ability or willingness of employers to increase wages, or trade decisions between two countries cause prices of some everyday goods to fluctuate, for instance.

Such economic impacts require you to decide how to allocate resources and budget effectively, and to use critical-thinking strategies to 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 assignment, you will apply all of these to a budgeting scenario.

Your goal for this assignment is to use your problem-solving skills to articulate how economics have real impacts on families and their budgets. You will apply decision-making and critical-thinking strategies to explain how economics inform personal budget decisions.

Preparation

Your assignment should incorporate research from the following resources and/or other Internet resources of your choice. One of these must come from the Capella library databases.

· Federal Student Aid. (2021). 

Parents of students
. https://studentaid.gov/resources/prepare-for-college/parents

. FAFSA offers resources to help parents and students understand how aid is calculated, information on various loan types, and more. Explore the checklist for pre-college planning in particular.

·
NerdWallet. (2021). https://www.nerdwallet.com/

. This resource does the research for you: they have aggregated information on credit cards, personal loans, and student loans, making this a one-stop shop for you to compare financial products. Use Nerdwallet.com to consider the impact of taking out a loan.

· Explore various financial calculators and other resources of your choice. Make sure each website is a credible source.

· Read the following scenario for context for this assignment as well as the Week 3 Assignment Template [DOCX]. The completed template will be your deliverable for this assignment. Make sure you are providing at least one paragraph of 4–7 sentences per section.

· Scenario

· Your child is starting a two-year culinary program at the community college this year and was awarded a small grant to cover some of the cost. You need to adjust your budget to help them with tuition and other expenses, as well as consider and project future economic trends. At the beginning of this year, the cost of housing rose, as there were more renters than rental units. Trade decisions have made some imported items more expensive than they were last year. The family’s income changed slightly, but because of these economic changes, you will need to modify the yearly budget. You must analyze spending in the prior year and the budget for this year. Your family might be unhappy with some of your decisions about where to spend less or more, so you must be prepared to explain your choices to them.

Instructions

For this assignment, complete the following:

1. Describe how a relevant economic concept applies to a scenario.

. Review the scenario for at least one economic concept and describe how it applies to the scenario.

2. Summarize the change in expenditures between budgets.

. Review the two budgets in the 
Week 3 Assignment Template [DOCX]. Prepare a summary of what did and did not change between the two budgets.

3. Describe the economic trends that created the need for a change in expenditures.

. Think about the economic trends that created the need for you to make the budget decisions that you did. Make connections to the economic concepts you have learned.

4. Provide a rationale for budget decisions made in response to economic changes.

. Explain the reasons for your choices to the family. Address all expenditures and discuss long-term effects of the changes you are making, as well as why you left any items unchanged.

5. Reflect on how changes in economic variables may affect your personal life and finances.

. Think about how changes in the economy have affected or are affecting your personal life and finances.

6. Address all components of the assignment prompt and use the assignment description to structure text.

. Review your assignment to ensure your written responses address all aspects of the template prompts and are well crafted.

Review your assignment to ensure that it meets all criteria before submitting the completed template to the assignment area.

Additional Requirements

· Written communication: Communicate in a manner that is scholarly, professional, respectful, and consistent with expectations for professional practice in education. Original work and critical thinking are required. Your writing must be free of errors that detract from the overall message.

· Font and font size: Times New Roman, 12 points.

· Sources: Two sources are required. One of these sources may be one of the course readings or videos; the second source must be obtained from the Capella library databases.

Order an Essay Now & Get These Features For Free:

Turnitin Report

Formatting

Title Page

Citation

Outline

Place an Order