Monday, November 21, 2016

Budget Project Links

Budget Links:  Use these links to help make your changes to the federal budget.  Remember to provide detailed information.




Good Into to Budget Functions:

http://budget.house.gov/budgetprocess/budgetfunctions.htm



Specific expenditures for each budget function (2013 but still good)


http://www.nytimes.com/interactive/2012/02/13/us/politics/2013-budget-proposal-graphic.html








Additional Information on Federal Agencies


https://www.fas.org/sgp/crs/misc/R41726.pdf












Wednesday, November 9, 2016

Economic Indicators Unit Review Sheet


Review Sheet:  Economic Indicators

Output

  1. Define Gross Domestic Product.
  2. Identify each component of GDP by the expenditure method.  Provide an example of each.
  3. Provide an example of:  intermediate good, non-market transaction, non-productive transaction, secondhand sale, and underground economy.  Why are these excluded from GDP?
  4. How is a recession defined in terms of GDP?
  5. What is unplanned investment?  How is it a factor in GDP?
  6. How are net exports calculated?  What does it mean if the net exports component is a negative number?
  7. What is GDP per capita? 
  8. Explain the difference between nominal GDP and Real GDP.
  9. How is real GDP calculated using base/current year prices and quantities?
  10. What is the GDP Deflator?  How is it used in real GDP calculations?
  11. What are the critical flaws of GDP as an economic indicator?  In other words, what does it do poorly?
  12. Contrast Gross National Product (GNP) with Gross Domestic Product (GDP).

Unemployment

  1.  Define:  full employment, unemployed, labor force
  2. Identify each type of unemployment and provide an example.
  3. Which type of unemployment is most serious to economists?  Least serious?
  4. Which two type of unemployment are present at full employment?
  5. Describe the impact of each on the calculation of the unemployment rate:  Discouraged workers, students, the underemployed, part-time workers.
  6. Explain Okun’s Law.

Inflation

  1. Define inflation.  Explain cost push and demand pull inflation.  Graph them.
  2. Identify the groups helped/hurt by inflation.
  3. What is the CPI?  How does it measure inflation?
  4. What are market baskets?  Why are the market baskets weighted in the CPI?
  5. How does the CPI differ from the GDP Deflator?  How are the two are indicators similar?
  6. Explain the flaws imbedded in the CPI.
  7. What is the difference between Core CPI and standard (headline) CPI?
     
      
      
    Calculations:
     

Year
Nominal GDP
GDP Deflator
Population
2009
$5000
125
11
2010
6000
150
12

 

  1.  What is real GDP for 2009?
  2.  What is real GDP for 2010?
  3. What is GDP per capita for 2009?
  4. What is GDP per capita for 2010?
  5. What was the inflation rate between 2009 and 2010?
  6. *What was the rate of nominal economic growth between 2009 and 2010?  What was the real rate of economic growth between those same years?
     

 

Employed persons:  2000

Discouraged workers: 150

Actively looking for work but without job: 300

Not working but not looking for work: 50

Part time workers: 10

  1.  Calculate the labor force
  2. Calculate the unemployment rate

Tuesday, November 1, 2016

Ch. 8 Reading Guide (Inflation 141-149)

1.  How does the Consumer Price Index (CPI) measure inflation?
2.  Describe the "market baskets" that are used by the Bureau of Labor Statistics in CPI calculation?  Why are they weighted?
3.  Contrast anticipated and unanticipated inflation.
4.  Review the groups helped and harmed by inflation.
5.  Define deflation and identify its effects.

Wednesday, October 26, 2016

Ch. 7 Reading Guide Part 2 (Due Thurs)

Carefully read p. 123-125


1.  In your own words, explain the difference between real and nominal GDP.


2.  In what circumstances would an economist prefer real GDP data to nominal GDP data? 


3.  What is a price index?


4.  What is the formula for calculating read GDP when you are provided with a price index?

Monday, October 24, 2016

Ch. 7 Reading Guide

Due Tues:
Read 112-117
1.  In your own words (and not the definition from class), what does GDP measure?
2.  Why do we only count final goods?  What would be an example of an intermediate good and why would it be excluded?
3.  What are "inventories" and how do they count towards GDP?
4.  Identify all other types of transactions that would be excluded from GDP.  Try to provide an example and explanation as to why national income accounts keep it out of out of GDP.
5.  How can the net exports component of GDP be negative?

Wednesday, October 19, 2016

Does My Vote Count? Economists weight in.....

With the Presidential election looming in the near future, people are gearing up to exercise their all-powerful ability to vote.  Citizens have been made to believe that each and every vote is important in determining the success of our future.  While voting is an essential part of a functioning democracy, there are some economists that feel that the act of voting is the single greatest waste of time.

http://www.nytimes.com/2005/11/06/magazine/why-vote.html

http://mentalfloss.com/article/59873/10-elections-decided-one-vote-or-less

http://www.nytimes.com/2016/04/25/opinion/should-everybody-vote.html

http://reason.com/archives/2012/10/03/your-vote-doesnt-count/ 


As you read through the articles in the above links, you should answer the following questions:

1) Explain two reasons why you believe that people feel so strongly about voting.

2) Explain the main conclusion that is reached in the article "Should everybody vote?"

3) Explain 3 reasons why economists suggest that people should NOT vote.

4) After reading the articles, do you believe that every citizen of voting age should vote?  Why or why not?

Friday, October 14, 2016

30 Days on Minumum Wage

Today we discussed price floors-legal restrictions on how little may be changed/payed for a good or service..  Minimum wage is a great example of a price floor in our economy.  We know price floors cause harmful surpluses, but do they also do good for the most vulnerable people in our society? 


Watch the film:  https://www.youtube.com/watch?v=vpTXmJ9-0Ic


Answer 1 of the following questions for class on Monday.  A 1-2 page response is adequate.


1. As you watch the film, keep a running list of challenges and hardships faced by minimum wage earners.  In a well-written response, identify three specific hardships and discuss how they were manifested in the movie.  Describe how these hardships impact the characters economically and/or socially.  How could these negative impacts be mitigated or avoided? 


2. The goal of the documentary was to provide insight into the lives of minimum wage workers.  To what extent do you think the film is realistic and accurate?  Cite specific examples from the film to discuss the ways in which the film was a real and accurate depiction of life making minimum wage.


 3. Some have argued that minimum wage today is a “broken” system and should be changed or done away with.  To what extent do you agree with this statement?  What changes could be made to minimum wage to make the system more effective.