ECONOMICS UNIT 1

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LESSON 1
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LESSON 1
Personal Finance and Advertising
Four P's
Product, Price, Promotion, Place
How do you benefit from understanding personal finance?

(Select all that apply.)
Comprehending the difference between debit and credit cards.
Making quality choices about money by creating and managing a budget.
What is the meaning of the word economics?
Laws for the home.
Question 1 (multiple choice)
Read the scenario.

George is 22 years old, single, and has just started his first job. He saves 5 percent of his monthly income for retirement. Kirsten is 30 years old and married with two children. She will start saving 6 percent of her income for retirement when she turns 35. Which person will have more money at age 65 if all other factors are the same?
George will because he is younger and saving for a longer period.
Which are offered by joining the military after high school?

(Select all that apply.)
receive tuition assistance after serving a certain number of years.
receive training while earning a salary.
Product
This identifies the good or service being sold and what is unique or special about it.

Questions:
What makes our product different from similar products?
What will our product packaging look like?
Price
This identifies the cost of the good or service. The company sets a price for the good or service by considering many factors beyond the profit it wants to make.

Questions:
How much are people willing to pay?
Should this product be a "high end" product that costs more, or a "value" option that saves people money?
Promotion
The company uses a combination of tools and techniques to spread information about the product.

Questions:
Should we focus our energy in online advertising or use television ads?
Should we create a social media campaign?
Place
This identifies where and how the product is sold.

Questions:
Should we have retail stores, or sell our product entirely online?
Should we have other retailers sell our product?