1. What are the four categories that you need to separate your expenses into? Which one do you
think makes up most of your own expenses? Why?
Expenses are separated into food and drink, transportation, clothing, and entertainment.
1. Why are cars a bad investment?
Cars depreciate in value very quickly because of the wear and tear drivers put on them.
Cars also cost a lot of money to keep running; you have to change oil, buy gas, etc.
Insurance is also very expensive.
1. What are three economic stances that a government may have? Describe each of these stances.
Neutral: a neutral stance indicates a balanced economy. In most cases, this stance leads to
more tax revenue for the government. Expansionary:
1. What is inflation risk?
Inflation risk is how prices on an item or service may rise or fall. Deciding to buy at a
particular time runs the risk that a price may fall after the purchase, or rise before the
2. What are opportun
1. What is the average debt for individuals 22-29?
The average debt for 22 - 29 year olds is $16,120
2. Why is it important to think about "needs" and "wants"? What are the differences between
It is important because if you spend all
1. What is a barter system?
A system that features a direct exchange of goods without the use of money or another
medium of exchange.
2. What is the principle of supply and demand?
Prices for goods and services will be determined by the s
1. What is a progressive tax system? How does it differ from a regressive tax system?
Progressive tax systems require those with higher incomes to pay a greater proportion of
their income in taxes. In contrast, regressive tax systems char
1. What character did you choose from the available choices? Why? What are the pros and cons
of choosing this character in the game?
I chose Billy Bob the Bowler because his debt and expenses were low. The downside of
Billy Bob the Bowler is
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?
People have to choose the home they want to buy, how much food to get, and many other
1. What are brokerage firms?
Brokerage firms manage and facilitate the purchase of stocks, bonds, and other types of
2. What are depository and nondepository financial institutions? How do they differ?