Thursday, April 7, 2016

Is Comparative Advantage Dead?

OK.  So for two days we've been studying comparative advantage and the overwhelming message has been:  Trade is good!  Minimize opportunity cost.  Efficiently use resources.  Specialize in that which you do best, and life for everyone automatically gets better! 

So why then are political candidates from the left and the right criticizing NAFT and the TPP every chance they get?  Why do so many smart people dislike trade?  Did they not the comparative advantage packet, or is there more to it?

Read the article distributed in class, and consider some of the other factors that may muddy the waters on the gains from trade.  Analyze the arguments against a strict, comparative-advantage based trade policy and try to frame your discussion in light of the current political debate.  Feel free to inject your own views.


Monday, April 4, 2016

Reading Guide: Ch 38

Due Tues:

1.  Why do nations trade?   What arguments are made for "free trade" or at least "free-er trade"?
2.  What barriers to trade have historically been erected by nations (protectionist measures)?
3.  What arguments are made in favor of protectionism.  Be prepared to discuss each.

Friday, March 18, 2016

AP Paper Info

Class ID: 12383878

Password:  Yellen

Good luck this week.  E-mail with any questions.  Use APA format on your own or through noodle tools.  Remember the minimum source requirement is 5 with one as a book/monograph.

Email any questions.  Submit by the due date:  Saturday, 3/26 at NOON!

Tuesday, March 8, 2016

Money and Monetary Policy Review Topcs


Nadramia/AP Economics


Monetary Policy Review Sheet


Chapter 13

The three functions of money

M1, M2, M3

Fiat vs Commodity Money

3 types of demand for money

The money market:  factors affecting money supply and demand for money

The Federal Reserve:  what does it control, how are Board members selected etc.



Chapter 14

How do banks create money:  goldsmith vs. banker

Reserve ratio

Reserve Requirement

New money created by a single bank (equal to that bank’s excess reserves)

New money created by banking system (equal to excess reserves times money multiplier

Money multiplier formula



Chapter 15

Monetary policy vs fiscal policy

Goals of monetary policy

Easy vs tight money policies

Effects on real GDP, price level

Effects on interest rates

Effects on real wages

3 tools of the Federal Reserve

Most/least frequently used tools



The money market

Investment demand

Impact of monetary policy on the economy (AS/AD)


Wednesday, March 2, 2016

Ch. 15 Reading Guide

Good morning all!  I hope you have your book and are ready to complete the reading guide.  Please have it done for tomorrow.

1.  Compile a list of bank assets and bank liabilities.

2.  Define the 3 tools of monetary policy held by the Fed.
a.  Open Market Operations
b.  The Reserve Requirement
c.  Benchmark Interest Rate (The Discount Rate and Federal Funds Rate)

3.  Define easy money policy and tight money policy.  Describe when the Fed. would wish to implement each.

4.  Create a chart detailing how each tool described in #2 would be used during:
a.  An easy money policy
b.  A tight money policy

5.  Describe how Janet Yellen is able to be both brilliant and beautiful at the same time.