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I need the following assignment to be completed as an original and plagiarism free.
Consider your last vehicle purchase and the decision making process you engaged in while deciding what vehicle to purchase or if a new vehicle was the right decision. While analyzing your decision, keep in mind that everything from the interest rates to the price of gasoline is driven by the economy in one way or another.
Develop a 1,400-word analysis of your decision-making process in which you include the following:
- Discuss the role of the interest rate and the cost of financing on your purchase decision. Interest rates are derived from the supply and demand for money and the actions of the Federal Reserve System. What was the rate of interest you paid on your vehicle loan? Were interest rates rising or falling at the time of your decision?
- Examine the influence of gasoline prices on the choice of vehicle you selected. Gasoline prices rise and fall dramatically based on economic supply of and demand for crude oil. When gasoline prices are low, Americans buy larger, heavier autos, SUV’s and pick-up trucks. When gas prices are high, Americans purchase more compact and fuel efficient vehicles. When you purchased your last vehicle, were crude oil and gasoline prices rising or falling?
- Discuss the following in regard to your household at the time of your purchase:
- Were you employed?
- Was the economy growing or contracting (recession)?
- If you were employed, did you take into consideration the risk that you might lose your job if a recession occurred during the period of your loan pay-back?
A basic assumption of consumers making purchases of large items requiring financing is that their household cash flow will be adequate to cover the monthly loan payments. For most Americans, this also means assuming continuation of their present wages. But many jobs are sensitive to rises and falls in the business cycle, as witnessed by the 10% unemployment rate of the past “Great Recession.”
Evaluate the financial trade-offs made when making your purchase. This includes lower maintenance costs for a newer vehicle versus a car payment and higher insurance among other factors.
- Discuss the influence of any of these Federal or state level programs on your decision to purchase a vehicle; or if these did not factor into your decision, explain why or why not:
- Buying fuel efficient vehicles such as Flex fuel, hybrids and electrics
- Converting existing vehicles to use alternative fuels (Flex fuel)
- Removing old, fuel inefficient, and high polluting vehicles from the highways
- Explain the influence of environmental factors such as emissions and health concerns on your decision.
- Discuss the ways in which your purchase illustrates one piece of the circular flow model of economic activity. What are the other parts?
- Develop conclusions about the economy’s influence on personal and business decision making such as purchases, investments, and so forth.
Cite a minimum of three peer reviewed sources.
Format your paper consistent with APA guidelines.
Individual Assignment: Economic Choice and Economic
Purpose of Assignment
The Week 1 assignment assists the learner in relating
every day decisions (such as the purchase of a vehicle) to the economic
concepts of the business cycle’s effect on household expenditures (risk). The assignment also provides students the
opportunity to consider a concrete example of supply and demand for a product
considered for purchase, costs vs. benefits of alternative choices and
opportunity costs, economic trade-offs among sources of supply, and
non-monetary considerations in economic choices such as environmental
degradation (unintended consequences).
The student discussed the role of interest
rates and costs of financing in regards to their purchase decision. The
student also included their interest rate and whether rates were rising or
falling at that time.
The student examined the influence of
gasoline prices on their choice of vehicle. The student also discussed
whether gasoline prices were rising or falling at that time.
The student discussed the following in
regards to their household at the time they made their purchase:
Was the student employed?
Was the economy growing or contracting
Did the student take into
consideration the risk that he or she might lose their job if a recession
occurred during the period of loan pay-back?
The student evaluated the financial
trade-offs that related to the purchase.
The student discussed the influence of any
Federal or state level programs on the choice of vehicle. The student discussed the following and
whether or not they affected their decision:
Buy fuel efficient vehicles
such as Flex fuel, hybrids and electrics
Convert existing vehicles to
use alternative fuels (Flex fuel)
Remove old, fuel inefficient
and high polluting vehicles from the highways.
The student explained the influence of
environmental factors such as emissions and health concerns on their decision.
The student discussed ways in which the
purchase illustrates one piece of the circular flow model of economic
activity and also discussed the other parts.
The student developed conclusions about the
economy’s influence on personal and business decision making.
is1,400words in length.
— including tables and graphs, headings, a title page, and a reference page —
is consistent with APA formatting guidelines and meets course-level
includes properly cited intellectual property using APA style in-text
citations and a reference page.
includes paragraph and sentence transitions that are logical and maintain
flow throughout the paper.
includes sentences that are complete, clear, and concise.
follows proper rules of grammar and usage including spelling and punctuation.