US Trade Deficit

Explain what the US Trade Deficit is.
- The U.S. Trade Deficit is basically a calculation of the difference between the good and services we purchase and sell from foreigners.

Why did it go down in December 2007?
-The US Trade Deficit went down in December 2007 because the import exceeded the export by $58.76 billion.

What does the value of the US dollar have to do with the trade deficit falling?
- Every time America's economy is less than what was spent, the value of the American dollar drops.

Why do you think that a large trade deficit is bad for the economy? In other words: why is it bad to import more goods than you export?
- A large deficit is bad for the economy because we are not making money if the number of imports exceeds the number of exports.

Opportunity Costs

In your own words, explain what economists mean when they talk about opportunity costs. What are opportunity costs? Give some examples. And give some examples from your own life.

Opportunity costs is the outcome we end up with when giving up something to gain something bigger. Economists talk about opportunity costs because they invest their money hoping to make a profit out of it. Many teenagers start exercising and eating healthy when they want that perfect body. They give up fast food and junk food hoping to gain the ideal body. I also experience opportunity costs in my own life. I would drink a bottle of water every night before I went to bed, therefore causing my bladder to be attended to and disturbing my sleep. I stopped drinking water before I went to bed and with that I gained a good sleep. With my good sleep I am able to become a jolly person and spread holiday cheer.

My Investment Strategy

Students will have two class periods to research their initial 5 stock picks and write a blog entry explaining their initial investment strategy. Why did you pick the stocks that you did?

I bought the five following companies:
American Eagle: I bought this stock because I've seen their clothes being bought a lot by young America. So I figured it would be good to invest on this company.

The Hershey Company: This stock was purchased because Valentine's Day is this week and everyone knows getting chocolate for your other half is what you do. So i figured the stock would go up as many whipped men went to get their women chocolate.

Home Depot Inc: America loves building stuff and Home Depot is the place they turn to when doing so.

Sonic Company: This is middle America's McDonald. They love the Sonic and as long as they make money, I love 'em too.

Best Buy: Although the music industry is going down, technological gadgets are at an all time high. And it doesn't hurt that I love this store.

America State's Water Co: People love water. Water loves People. People + Water = Moneyyy.