2. PERSONAL FINANCE, 8e by Robert Rosefsky Including Talking Points- Interactive Thought Provokers for class discussion, and Outside Assignments

3. CHAPTER 1Slide 1 of 8 Chapter 1. THE ECONOMY: HOW IT WORKS AND WHAT IT MEANS TO YOU Financial Freedom… Flexibility… Career Success… Peace of Mind A. Economic Phenomena That Shape Our Lives (See Ups and Downs, Text page 28) 1. Forces 2. Influences 3. Effects and Results

4. CHAPTER 1Slide 2 of 8 Examples: a. “Fish, Berries and Logs” - People just like us b. “The Empty Forest” - Natural Resources c. “All Dried Up” - Technology, Nature, Spirit d. “The Disappearing Fish” - Environment e. “ The First Price Wars” - Inflation

5. CHAPTER 1Slide 3 of 8 f. “The Value of Good, Hard Work” - Productivity g. “Smoking a Fish” - Natural Resources, Technology, Law of Supply and Demand h. “Bad News, Good News” - Education, Research i. “A Crushing Blow” - Marketing j. “Help Wanted” - Government Policy, Investment Incentives Examples (continued)

6. CHAPTER 1Slide 4 of 8 B. Government Policies 1. “The Building Binge” - Fiscal Policy 2. “The Beer Bust” - Monetary Policy 3. “The Banking Bombshell” - Regulatory Policy 4. “Tit for Tat” - Trade Policy “Here Today, Gone Tomorrow” - Industrial Policy

7. CHAPTER 1Slide 5 of 8 C. Today’s Realities 1. Productivity 2. Government 3. International Matters 4. Technology 5. Information

8. CHAPTER 1Slide 6 of 8 6. Capital Investment 7. The Future Value of Money 8. Marketing 9. Nature and Natural Resources Today’s Realities (continued)

9. CHAPTER 1Slide 7 of 8 TALKING POINTS... Chapter One, Number One Your boss tells you that competition from Asia is causing him severe financial problems, and layoffs might be in the wind. Evaluate and discuss these options: A. Quit now and start looking for another job. B. Offer to take a cut in pay to avoid being laid off. C. Start learning new job skills. D. Hang in there and hope for the best. E. Other?

10. CHAPTER 1Slide 8 of 8 TALKING POINTS… Chapter One, Number Two Thanks to a bustling economy, the federal government has a huge surplus. Some politicians urge that the surplus be used to cut everyone’s income taxes. Others advocates using the extra money to improve education and health care for the elderly. How might each position impact on the nation’s economy? On your personal well-being?