Question

In this paragraph, describe the economic concepts that you used in your outline. Explain how each of these concepts will help Frankie to make a decision.

Answer 1

Frankie should consider several strategies before buying a new pair of shoes. First, he should think about whether these shoes are a need or a want. Next, he should consider opportunity cost. If he buys the shoes, how else could he have spent that money? Could he have made better use of his resources? Finally, he must consider the issue of setting goals. He must identify whether this is a goal to accomplish now or in the future.

Answer 2

Sample Response:

Strategies for Frankie to consider

1.) Needs and wants

    A.) Whether Frankie needs new shoes

2.) Opportunity cost

    A.) Purchases and savings Frankie must give up if he buys new shoes

3.) Short-term and long-term goals

    A.) Whether Frankie needs shoes now, or can plan to buy shoes in the future