- Pdf Size: 900 KB
- Pdf Name: Personal Finance
- Total Pages: 18
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Page 1: There are Four Basic Economic Activities of Consumers •Earning •Spending •Savings • Borrowing
Page 2: Earning – gaining money by working, owning a business, or receiving investment returns. Money gained from earning is called earnings.
A person’s career choices, ability to find employment, and ability to advance determine his or her expected earnings and standard of living.
Page 3: Factors Affecting Earnings. 1. Career Choices: Type of career/job, Place of employment 2. Ability to Find Employment, Education level, Employability skills, Prior job performance, Economic conditions, Workplace trends and opportunities
3. Ability to Advance, Type of career/job, Education level, Job performance, Economic conditions, Workplace trends and opportunities
Page 4: Education pays…Education. Income Earning Ability. Unemployment.
Page 5: Spending, using money to purchase goods and services. The way a person spends money determines the value received and influences the economy.
Each purchase contributes to the demand for the product or service purchased.
Page 6: Law of Scarcity, An economic system cannot produce all goods and services that consumers want, and most consumers do not have the resources to purchase everything they want.
Choices must be made about how limited resources (time, money) are used.
Page 7: Trade-offs and Opportunity Costs, Because of scarcity, any time a choice is made there are alternatives that are not chosen. When making a choice, other alternatives must be sacrificed.
The highest-valued alternative that must be given up when a choice is made is the opportunity cost of the choice. The choice of one item while giving up another is called a trade-off.
Page 8: Responsible spending• Responsible spending includes researching and planning purchases in advance and making wise choices in light of opportunity costs and trade-offs that apply…. (Read pdf for more)