Scarcity
Tradeoff decisions
International trade
Opportunity cost
Compound growth
- How did expenditures change between budgets? Which expenditures changed the most? Which expenditures changed the least? Which stayed the same?
- What were the economic trends that created the need for your friend’s family to change their expenditures? What can you infer about the connection between prices and expenditures, based on the economic concepts you have learned?
- Help your friend explain the rationale for their budget decisions to their family. For each expenditure change, describe why your friend made that decision and how it impacts the family overall. Also make sure to address expenditures that did not change. What are the long-term benefits/risks of these changes? Some questions you could help them answer are:
Why did your friend decide to buy less imported food, and more domestic food?
Why did your friend decide to use the furnace and air conditioning less?
Why did your friend decide to walk more?
Why did your friend not change the amount spent of education and family care?