Introduction:Supply and demand forces coordinate the actions and interactions of millions of buyers and sellerseven in the job market.Through price signaling, people communicate what they value.

The Bureau of Labor Statistics' Occupational Outlook Handbook (OOH) helps you determine what markets value in a long list of occupations.

Additionally, the OOH describes (1) what is valued by employers in terms of education and training, (2) what to expect in terms of job prospects and earnings, and (3) the associated responsibilities and working conditions for a vast variety of occupations.

This information will help you identify your potential income stream and, in turn, help you better plan for the future.

Visit the Bureau of Labor Statistics'Occupational Outlook Handbook (opens new window)(plain textlink:http://www.bls.gov/ooh/)and pick one occupation of interest given your major, talents, and/or hobbies.

Apply the economic way of thinking to describe the supply and demand conditions of this occupation, using the OOH data andPart 1 ofCommon Sense Economics.

Find the median pay for the occupation you chose in the previous question.

Enter this median pay into theTake-Home Pay Calculator provided by Calculator.net (opens new window)(plain textlink:http://www.calculator.net/take-home-pay-calculator.html?cannualincome=40000&cpayfrequenc)

As requested, make the necessary adjustments for filing status, retirement contributions, and other options to match your situation.

Click on "Calculate" to determine the "actual income" this job promises to bring into your household budget twice a month.Enter your bimonthly take-home pay here.

Is your bimonthly net pay higher or lower than that of the $1,500 from the previous budgeting assignment?

Which items do you plan to adjust upward or downward in your budget to accommodate this difference in pay?Explain.

Which one of the following individual(s) should consider purchasing housing rather than leasing or renting?

Identify factors that will impact the risk of purchasing a house (The explanation is the important element of your response).

• Option A:A recent college graduate searching for post-graduate employment
• Option B:A thirty-year old interested in moving up the career ladder who is willing to relocate on receiving an attractive offer
• Option C:A young couple with a $0 balance in their rainy day savings account and sizable monthly payments on credit cards and student loans
• Option D:A couple with secure employment, a strong attachment to their current location, and funds available over and above their rainy day savings account

The appropriate mix of stocks and bonds changes as a person moves through different phases of life in hope of achieving a variety of short- and long-term financial goals.Which portfolio makes sense for a personsaving to place a 20% down payment on a house in 3 years

a. almost exclusively stocks,

b. a much larger mix of stocks than bonds,

c. a much larger mix of bonds than stocks, or

d. almost exclusively bonds

The appropriate mix of stocks and bonds changes as a person moves through different phases of life in hope of achieving a variety of short- and long-term financial goals.Which portfolio makes sense for a personsaving to retire in 45 years

a. almost exclusively stocks,

b. a much larger mix of stocks than bonds,

c. a much larger mix of bonds than stocks, or

d. almost exclusively bonds

The appropriate mix of stocks and bonds changes as a person moves through different phases of life in hope of achieving a variety of short- and long-term financial goals.Which portfolio makes sense for a personsaving to set up a diversified portfolio with a high long-term growth target

a. almost exclusively stocks,

b. a much larger mix of stocks than bonds,

c. a much larger mix of bonds than stocks, or

d. almost exclusively bonds

The appropriate mix of stocks and bonds changes as a person moves through different phases of life in hope of achieving a variety of short- and long-term financial goals.Which portfolio makes sense for a personsaving to provide an initial investment for a newborn's college fund

a. almost exclusively stocks,

b. a much larger mix of stocks than bonds,

c. a much larger mix of bonds than stocks, or

d. almost exclusively bonds