Description
Week 5 | Discussion
"Considering Tradeoffs You Make Every Day"
Let's talk about two tradeoffs we face every day: how we spend our time and money.
We can only do two things with income: spend it or save it. Time is the ultimate resource. We can choose to spend time working to earn an income or we can do other things, broadly classified as leisure. Reply to these prompts to start your discussion:
- How does a change in interest rate affect your decision to spend or save? How would a change in the interest rate affect a firm's decision to invest or save?
- How might an increase in the wage rate affect what you do with your time?
- Now describe a tradeoff you’ve made in terms of time or income.
Talk about tradeoffs with your peers:
- Reply to one peer who made a tradeoff to which you can relate. Discuss and compare your decisions.
Explanation & Answer
Attached.
Running Head: TRADEOFF
1
Tradeoff
Institution affiliation
Date:
TRADEOFF
2
In everyday life, there are several tradeoffs that I must consider before making any
decision. For example, I have a culture of saving and investing. In this case, I must understand
how the two works in the exclusive finance. I need to understand when the best time to save is
and when it is the best time to invest. Both of the two are equal...
Review
Review
