Thursday, September 24, 2015

Student Activity Three -- How do Economic Factors Affect Decision Making?

Economy: Does it Really Effect Me?


Changing economic factors affect the decisions we make. Using the internet, most likely the search engine GOOGLE, possible online publications such as the Wall Street Journal, use any resource that is available to you for economic news. Obtain information about current economic trends that influence various savings, investing, spending, and borrowing decisions. Using the table below, and filling in the each field with as much detail as necessary to completely demonstrate understanding to your reader, provide your interpretation of recent trends (last two to four years), and then also describe the influences on these trends on financial decisions.

What are Economic Factors:
The set of fundamental information that affects a business or an investment's value. Various economic factors need to be taken into account when determining the current and expected future value of a business or investment portfolio. For a business, key economic factors include labor costs, interest rates, government policy, taxes and management.

EXAMPLE:
       Economic Factor                          Recent Trend                         Possible Influence
         Rise of                               Increase                      Property values
 Building Permits                        in my Area                    may increase might
                                                                                     be a good time to
                                                                                     sell land or house



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