Principles of Financial Planning

Question 1

want need

Revolt · Accepted Answer

want; Selection 1: want

Question 2

Which strategies are included in your outline? Check all that apply.

Revolt · Accepted Answer

needs and wants; risk and return; budget; opportunity cost

Question 3

Use what you have learned about wants and needs to complete these statements.

Revolt · Accepted Answer

Frankie already has a pair of basketball shoes that he can wear for the tryout, which makes the new pair a.: want; If Frankie did not have a pair of basketball shoes for the tryout, the new shoes would be considered a.: need

Question 4

In this scenario, Frankie must consider whether making one choice will force him to give up another.Based on what you have read, which economic concept is Frankie faced with?

Revolt · Accepted Answer

opportunity cost

Question 5

What should Frankie consider before buying the car? Check all that apply.

Revolt · Accepted Answer

what he will be giving up if he spends $800 on the car; the cost to maintain (oil, tires, gas, brakes) and insure the car; his short- and long-term financial goals; if an alternate mode of transportation, such as a bicycle or the bus, is sufficient for his needs

Question 6

Now you will write an informative paragraph that will help Frankie to understand his financial options and formulate best practices for spending and saving. Before you do, you will create an outline with bullet points. This outline will help organize your ideas and help you to identify at least three economic strategies that Frankie should use when making his decision to purchase a new pair of shoes.

Revolt · Accepted Answer

Strategies to consider: 1.) Needs and wants -does he need new shoes? 2.) Opportunity cost - savings he loses if he buys new shoes - how long did he work to pay for those shoes? 3.) Short-term and long-term goals - need shoes now? - can plan to buy shoes in the future?

Question 7

Now, use your paragraph to inform Frankie about his options.In this paragraph, describe the economic concepts that you used to create your outline. Explain in greater detail how each of these concepts will help Frankie to make a decision to buy or not to buy a new pair of shoes.

Revolt · Accepted Answer

PENDING

Question 8

want✔ need

Revolt · Accepted Answer

need

Question 9

What did you mention in your response? Check all that apply.

Revolt · Accepted Answer

evaluating opportunity cost; setting and achieving goals

Question 10

Use what you have learned about wants and needs to complete these statements. Frankie already has a pair of basketball shoes that he can wear for the tryout, which makes the new pair a. If Frankie did not have a pair of basketball shoes for the tryout, the new shoes would be considered a.

Revolt · Accepted Answer

want; Frankie already has a pair of basketball shoes that he can wear for the tryout, which makes the new pair a.: want; If Frankie did not have a pair of basketball shoes for the tryout, the new shoes would be considered a.: need

Principles of Financial Planning Answers

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