What Are Trade-Offs That People Face
1. What are some of the financial decisions that people face? What are trade-offs? What are some of the trade-offs that you may face? Some financial decisions that people face are whether they should go to college or buy a house, or whether they should buy something expensive instead of cheap. A trade-off is a balance achieved between 2 desired but incompatible features, or a compromise.
2. What is the cost of something? The cost of something is how much something is worth but it usually costs more than what it’s cost was to make.
3. What does it mean to think "at the margins"? How does this relate to financial decisions? To think at the margin is to make better decisions and have enough time to do both and have enough for the activities.
4. How do incentives change people's behaviors? Incentives change people’s behavior by if someone says today we’ll drop taxes then several people would want to buy it because of no taxes, and if they were to raise the price of cigarette’s then people would not want to pay more for it. …show more content…
5.
Why is trade important? Trade is important because of the taxes on them and we get money from that from other countries.
6. What are markets? Markets are used to promote items and they also are for selling things to make a profit, or like stocks.
7. Why do governments intercede in the market? The government intercedes in the market because they help enforce tariffs and make a profit off of the exports.
8. What explains the difference between richer and poorer countries? How does a government promote this? The income of the poorer country’s people affects their style of life. The government promotes this by the job force and how people work to get income to continue with their style of
life.
9. Why do prices rise when the government prints too much money? Why prices rise when the government prints too much money is because of there is more money and people feel wealthier so they will want to buy more but the prices rise.
10. How does the economy affect your personal finances? The economy affects people’s personal finances by inflation because prices go up after the government prints too much money. The economy also affects people’s personal finances by unemployment because people who don’t get a higher income during inflation won’t be as fortunate because the prices will raise which means they can only buy certain things and limit themselves.
2. What is the cost of something? The cost of something is how much something is worth but it usually costs more than what it’s cost was to make.
3. What does it mean to think "at the margins"? How does this relate to financial decisions? To think at the margin is to make better decisions and have enough time to do both and have enough for the activities.
4. How do incentives change people's behaviors? Incentives change people’s behavior by if someone says today we’ll drop taxes then several people would want to buy it because of no taxes, and if they were to raise the price of cigarette’s then people would not want to pay more for it. …show more content…
5.
Why is trade important? Trade is important because of the taxes on them and we get money from that from other countries.
6. What are markets? Markets are used to promote items and they also are for selling things to make a profit, or like stocks.
7. Why do governments intercede in the market? The government intercedes in the market because they help enforce tariffs and make a profit off of the exports.
8. What explains the difference between richer and poorer countries? How does a government promote this? The income of the poorer country’s people affects their style of life. The government promotes this by the job force and how people work to get income to continue with their style of
life.
9. Why do prices rise when the government prints too much money? Why prices rise when the government prints too much money is because of there is more money and people feel wealthier so they will want to buy more but the prices rise.
10. How does the economy affect your personal finances? The economy affects people’s personal finances by inflation because prices go up after the government prints too much money. The economy also affects people’s personal finances by unemployment because people who don’t get a higher income during inflation won’t be as fortunate because the prices will raise which means they can only buy certain things and limit themselves.