...Week 6 – Day 5 - Checkpoint XECO/212 Money From the early settlers to the people of today, money has been at the forefront of our existence. When trade began and the settlers started to learn the value of their skills and began to barter, who would have known money would grow into such a commodity. There are several functions of money, the first being that money acts as unit of account, because it allows us to provide a good or service to someone and get money for it in return. An example would be going to work every day and getting a paycheck at the end of the week for doing what the company asks of me. Money is a medium of exchange because although it is like barter, when you provide a service you get paid money for your expertise. Again, if you brought your car to the mechanic because the tire was flat and he put on a new tire, you would pay him for his expertise with money. The best and third function of money is the store of value. You can take it and store it to use another time. For example, I get paid every week and if I take half of my paycheck and put it into the bank, I hope over the next ten years it will retain its value and even earn interest. I do not think that putting my money in the bank will ever make it lose money. So I am not spending all of my money at once, I want to save some for a future...
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...Checkpoint Week 6 May 28, 2011 XECO/212 Money acts as a unit of account. Unit of account is defined as a standard monetary unit of measurement of value/cost of goods, services, or assets. Unit of account is one of the three functions of money. It is the standard denomination that prices are measured with. When I go to work and get paid by the hour, it is me getting paid for the services that I provide. Money is always going to be worth something. The actual value may change but it is always going to be worth something. Medium of exchange is anything, usually money, which is used to make payments for goods, services, and assets. Medium of exchange (money) is used in trade to avoid going back to the pure barter system. Although usually it is money, it can be anything that people agree to be worth something. For instance, gold and silver are other examples of a medium of exchange. An example of a medium of exchange that I use is my debit and credit cards. They are not actual money but they are used the same. Money can also be used as a store of value. That is a way to accumulate value until it is needed. A lot of people do this for many different things. Paying a down payment on a house or car is one. Also smaller stuff like when I go shopping, I like to save up all of my extra money so that I can buy more at one time. Many people say that money cannot be a store of value...
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...Latonya Rice Jan. 6, 2012 XECO/212 Week One Checkpoint; New House Readiness Deciding to buy a house, in my opinion, would be a lifelong goal that I consider an extremely serious investment. My studio apartment would not be large enough for the newest member arriving to my family; it would only suit the time being. Therefore, I have decided to move to larger accommodations. I have examined the factors that come into play with making such a large and weighty purchase from the perspective of an economist. The principles that I think would play a major role in my decision are: Principles 1 - 10. Principle 1: I would face tradeoffs in purchasing a home, a thorough look at my income and expenses will be a priority (i. e.”what if” scenarios). Principle 2: What can I give up to get my house (i.e. Sacrifices, what is necessary and what’s not). Principle 3: What are the benefits and opportunities of a house over an apartment? Principle 4: What are the incentives for me owning a house? Principle 5: Is this a beneficial trade that can make it better for everyone? Principle 6: Would it be a more beneficial organization owning a house (i. e. being closer to work, schools, etc.)? Principle 7: Would property rights enable more promotion for efficiency and to promote equity? Principle 8: Would this enable a higher standard of living or lower (with the trade- offs in my budget)? Principle 9: Inflation, the growth in the quantity of money (i.e. Would the payments...
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