EPF Final Exam - ACADEMIC

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Academic Economics & Personal Finance Final Exam Find news article(s) from a reliable publisher and use your understanding of course material to connect the news story to microeconomics, macroeconomics & personal finance. As part of your connections, you'll include references to an assignment from each content area. The article must have been published August - December 2023. You may use a different article for each component, or you may use the same article more than once. You MAY NOT use articles from your International Trade Media Analysis Activity. Your writing must be in your own words (except where a singular direct quote is required). You may not use AI or other assistive technology. Use this resource to identify reliable publishers by changing the filter to a reliability range of 40-65 & bias range of -6 through +6 Microeconomics (Unit 1 Microeconomics & Unit 2 Business) Publisher & AdFontes coordinates NYTIMES Reliability: 41.92 Bias: -7.9 Article Title, Byline, Date & link Corporate America Is Testing the Limits of Its Pricing Power By Jason Karaian, Jeanna Smialek and Joe Rennison, Dec 11, 2023 Related course assignment (include link to your digital work) Business Fair Reflection.docx Explain how the story in the article connects to microeconomics. Your explanation must prove you understand the news story & microeconomics. You must also include at least 1 piece of evidence from your assignment as part of your explanation. (Min. 10 sentences) The article connects to microeconomics and business in several ways. From a microeconomics perspective, the article discusses how individual firms are determining the optimal pricing strategies for their products or services based on factors such as demand, competition and production cost. It also goes over the fact that pricing decisions affect consumer behavior, market equilibrium, and overall industry dynamics. From a business standpoint, the article explores how companies navigating pricing strategies in response to changing market conditions, consumer preferences, and competitive pressures. It might also analyze the impact of pricing power on companies' financial performance, market share, and long-term sustainability. This article relates to our business fair project in various ways. During the business fair, we had to adjust our pricing several times based on competition, inventory and demand for our popular product. Even though in the beginning of the fair we struggled, so we decreased the price of our product, but overtime as the demand grew, we ended up having to increase our pricing by over 100%. We had to change our pricing because the demand for our product outweighed the supply for our product. Overall, pricing power can be both good and bad, depending on the context. Having pricing power can be beneficial as it allows a company to potentially increase its profit margins. However, this can also lead to negative consequences such as potential consumer backlash, decreased customer loyalty, or even regulatory scrutiny if the company is seen as exploiting its market power. It is crucially important for companies to use pricing power responsibly and ethically to maintain a balance between profitability and customer satisfaction.
Macroeconomics (Unit 3 Fiscal Policy, Unit 4 International Trade & Unit 5 Monetary Policy) Publisher & AdFontes coordinates American Press Reliability: 45.88 Bias: -2.19 Article Title, Byline, Date & link Inflation eased in 2023. That's giving investors hope for a gentler Federal Reserve next year , By Damian J. Troise, December 7th, 2023 Related course assignment (include link to your digital work) Credit Activities 101 Explain how the story in the article connects to macroeconomics. Your explanation must prove you understand the news story & microeconomics. You must also include at least 1 piece of evidence from your assignment as part of your explanation. (Min. 10 sentences) The easing of inflation in 2023 is indeed significant in the context of macroeconomics and financial markets. A decrease in inflation can signal a postponement from the economic pressures caused by rising prices. This could potentially influence the Federal Reserve's monetary policy decisions, leading to expectations of a more accommodative approach in the following year. For investors, a gentler Federal Reserve implies the possibility of less aggressive interest rate hikes or a more cautious tightening monetary policy. This, in turn, may lead to increased confidence in the stability of financial markets and the overall economy. This connects to the credit activities that we did in Unit 5: Monetary Policy for the reason that inflation and interest rates are closely linked, and changes in inflation can have significant effects on the interest rates for various types of loans, such as car loans, credit cards and mortgages. If inflation is high, lenders may increase the interest rates in car loans to compensate for the decreased purchasing power of money. This means borrowers might face higher costs for borrowing funds to buy a car. Conversely, during periods of lower inflation, lenders may adjust their interest rates downward, making car loans more affordable. In times of lower inflation may lead to reduced interest rates on credit cards, potentially making it less expensive for consumers to finance their purchases using credit. On the other hand, in times of high inflation, credit car companies may raise their interest rates to offset the diminishing value of money over time. Consequently, consumers carrying balances on their credit cards could face higher costs for maintaining their debt. Similarly, inflation impacts the interest rates on mortgages. High inflation typically pushes mortgage interest rates higher, making it more costly for individuals to borrow money to purchase homes. Conversely, during periods of lower inflation, mortgage interest rates may decrease, potentially providing more favorable financing conditions for homebuyers. Understanding the relationship between inflation, monetary policy and investor expectations is a key area of study in both macroeconomics and finance. Personal Finance (activities throughout course) Publisher & AdFontes coordinates Wall Street Journal Reliability: 48.87 Bias: -0.27 Article Title, Byline, Date & link Why This Is a Good Year to Be a Renter, in Three Charts Related course assignment (include link to your digital work) Copy of Budget Activity
Explain how the story in the article connects to personal finance. Your explanation must prove you understand the news story & microeconomics. You must also include at least 1 piece of evidence from your assignment as part of your explanation. (Min. 10 sentences) The article "Why This Is a Good Year to Be a Renter, in Three Charts" can provide valuable insights for personal and budgeting, especially for individuals who are considering the decision between renting and buying. By analyzing the data presented in the three categories, cooling rents, landlords offering more sweeteners, and more rental units hitting the market, you can gain a better understanding of the current rental market and its potential impact on your budgeting decisions. For example, it may be rental prices, demand for rental properties, amenities that may determine your choice between renting and buying. Due to new property constructions and the rise in vacancies, people who are looking for new living arrangements are more likely to score deals now than in previous years. The article talks about the rent vs buy debate, and how it is more favorable to rent, at least for the short term. Overtime with enough people leaving the rental market to buy homes, the vacancies of rentals can potentially lower rents. Rental property landlords may also add sweeteners such as a month free of rent, a free parking space, concierge trash valet, and even landscaping for the rental property. When connecting this to personal finance including the financial decisions and activities of an individual or household, including budgeting, insurance, mortgage planning, savings and retirement planning it is important to look at every decision as a full circle investment. This connect with the budgeting activity that we did because depending on the job selection along with education, we had to strategically make decisions on how we spent our paycheck, the decision weather to buy a home or rent a home, weather to buy a brand new car or buy a mid cost used car, even down to the type of phone service we decided was crucial in how much we had left over to invest in retirement funds or to save. All these decisions play a major part in how we choose to live life, and truly decides what we get out of life based on what we put in overtime.
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