Everyone learned about the ruthless "robber barons" in US history.  Perhaps you have even read the article linked below (it is one of my favorites).  This time we are going to explore it from an economic perspective.  Please print out a copy of the article and bring it to class on Friday complete with your notes and underlining.  This promises to be a good discussion.


To consider when reading and responding to the post:


1.  What is the traditional view of 19th century industrialists?  Where did this view come from and to what extend is it inaccurate or inaccurate?
2.  What view does Klein attempt to put forth as a challenge to this view?  What evidence is used?
3.  Think back to your own history education?  How was the topic of industrialization treated?
4.  Pick one or two of the individuals profiled in the article and detail the alternative view of their contributions.
5.  Think about the current popular view of large banks, corporations, and billionaires in our society.  Is our current disdain for these groups any different than the popular caricature of robber barons?


Good luck.  I really like this article, so read carefully.








http://www.city-journal.org/html/5_1_a2.html

Fed. Challenge Application (You Know You Want To!)

Answer and submit to the blog before we leave for the holiday break if you would like to be considered.  I WILL NOT be posting responses.  It is just for me to read.  Remember that I can only select 5 students!




1.  Why do you want to be part of our Fed. Challenge team?
2.  What is one aspect of our economics class that you have enjoyed and found valuable so far this year?
3.  What particular strengths do you think you would bring to our team?
4.  Are there any days after school where you would not be available to meet?
5.  Are you available for all possible competition days including 1/28, 3/12, 3/17 and 4/16?
6.  How many days have you been absent from school this year?
7.  Anything else I should know or consider?

The State of the American Retirement

Isn't it just like a teacher to give you an assignment about retirement before you have even started working?  I understand this subject may seem remote to you at age 17, but retirement system in America is a major component of our economy as well as a component of our social contract.  And that contract HAS changed over the past decades.  While Social Security still exists to replace some worker income in retirement, the corporate pensions plan one thought of a standard perk for a long and dedicated career, has gone the way of the dodo.  Read the three links below.  The first is an introduction to the situation that describes the contrast between defined benefit (pension) and defined contribution ( 401k) plans that currently make up the bulk of most America's retirement funds.  The other two links are to articles arguing, in on case, for pensions and for 401ks in the other.


You blog post should respond to some of these issues:


1.  What is the difference between pensions and 401k's?
2.  Where did the 401k model come from?
3.  When did the shift from pension to 401k occur and why?
4.  Are Americans  better off with a 401k of pension?  explain.
5.  Are most American's prepared for retirement?  Explain.
6.  What should young workers be doing to prepare for retirement?  And when?
7.  Do you think the current retirement scheme will provide security for you, your parents? 
8.  What do you think we should have in place as a retirement system?
9.  Compare to other countries?

Please read........
http://www.hrworld.com/features/pension-plans-still-reality/

http://theweek.com/article/index/226886/how-401ks-are-failing-millions-of-americans

http://money.usnews.com/money/blogs/on-retirement/2013/05/15/6-reasons-a-401k-is-better-than-a-pension

Optional.......
http://www.thinkadvisor.com/2013/09/20/retirement-around-the-world-how-the-us-system-stac

Ch. 11 Reading Guide

Due Wed. 12/3


1.  Illustrate the aggregate demand (AD) curve. How does each of the following explain the downward slope of the AD curve?
a.  Real-Balances Effect (wealth effect)
b.  Interest-Rate Effect
b.  Foreign Purchases Effect (net export effect)


2.  Create a chart to organize each factor affecting aggregate demand.  Columns should include:  definition of the factor, illustration of increase, illustration of decrease.






Due Mon.12/8


1.  Illustrate the Long Run Aggregate Supply (LRAS) curve.
2.  Why is the LRAS curve vertical?
3.  Explain the significance of long run equilibrium (where LRAS and AD meet).
4.  Create a chart identical to #2 from Wednesday's assignment for the factors affecting LRAS.








Due Tues. 12/9
1.  Illustrate the Short Run Aggregate Supply (SRAS) curve.
2.  Explain the slope of the SRAS curve.
3.  Explain the significance of short run equilibrium (where SRAS and AD meet)
4.  Create a chart identical to #2 from Wednesday's assignment for the factors affecting SRAS.

Review Sheet: Economic Indicators Monday Exam 11/24

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?

Reading Guide: ch. 8/ Inflation

1.  Define inflation
2.  Identify and explain the two types of inflation.
3.  Create chart identifying the people and groups helped by inflation and hurt by inflation.
4.  The Federal Reserve has set an inflation "target" of 2%/year indicating that they believe modest inflation is desirable.  Why not aim for 0% inflation?

Ch.8 Reading Guide: Unemployment Rate

You will be using chapter 8 up to 141.

1.What is GDP per capita and how may it be used as an economic indicator?
2. Why is GDP per capita still an imperfect measure of living standards?
3. Diagram the business cycle model in your notes.  Name each phase and note the types of economic conditions said to occur in each phase.
4. Define:  unemployment, unemployment rate, labor force, full employment
5. Identify each type of unemployment and provide a real-life example.
6. Explain Okun's Law and the relationship between GDP and UR.
7. To what extent is the unemployment rate inaccurate?  Explain.

DUE MONDAY. Have a wonderful weekend.

Reading Guide: Ch. 7

 

*Note:  You may skip reading about the “income approach” to GDP. (p118-119).

DUE THRUS

1. What is National Income Accounting?  Why is it performed?
2. What does Gross Domestic Product (GDP) measure?
3. Using the expenditures approach to GDP calculations, identify the types of transactions that are included and excluded from this indicator.
4. Why would counting secondhand sales and intermediate products be considered “double counting” to national income accountants?

DUE FRI

1. What are inventories (also called unplanned investment)?  Why are they counted toward GDP?
2. Briefly describe each economic indicator listed and explain how each differs from GDP:  Net Domestic Product, National Income, Personal Income, and Disposable Income.
3. Contrast Gross Domestic Product (GDP) with Gross National  Product (GNP).
4. What is the difference between Real GDP and Nominal GDP?  Which is a more useful measure to economists?
5. What shortcomings does GDP have as a macroeconomic measurement?

 

 

Vocabulary

You are responsible for all chapter vocabulary on page 128.

Taxing the Poor

Watch:  http://www.pbs.org/now/shows/415/video.html

What are some reasons Alabama instituted a grocery tax?

Provide one example of how poor families are impacted by the tax.

Some argue Alabama favors wealth companies at the expense of the poor.  Explain why this is according to the film.

Do you believe the grocery tax is fair or unfair?  Use specific examples to support your view.

If the grocery tax was eliminated, what type of tax ought to replace it in your opinion?  Explain your rationale.

Flat Tax = Fair Tax ?

Here are the two links needed to prepare for tomorrow's class.  The first is an introduction to the idea of a "flat" tax on income and a poll exploring its popularity.  The second is a collection of opinions on the issue from prominent individuals.  Please skim all of the viewpoints, but take notes and become an expert on your one assigned person.


http://reason.com/poll/2014/04/15/62-percent-of-americans-say-they-favor-a


http://www.usnews.com/debate-club/is-a-flat-tax-a-good-idea

Should We Worry About the National Debt?

The seemingly easy answer to this question is YES!  But in fact economists disagree fervently about the degree to which national debt is a real worry.  As you read the articles below, compile a list of arguments for and against worrying about the debt.  A "T-Chart" will work well for this purpose.  One you read and compile your lists, post a response on the blog explaining whether you are a "worrier" or not based on the evidence.  Be prepared to discuss as the activity for Tuesday.  Feel free to bring in additional sources of your own choosing. 


http://www.forbes.com/sites/sharding/2013/11/08/dont-worry-so-much-about-government-debt/


http://www.cbsnews.com/news/national-debt-passes-16-trillion-should-you-worry/


http://mic.com/articles/73067/america-is-17-trillion-in-debt-here-s-why-you-shouldn-t-be-worried


http://keithhennessey.com/2014/02/17/high-debt-bad/

Student Loans and the Federal Budget

First, read:  http://money.cnn.com/2011/08/01/news/economy/debt_ceiling_students/




Then answer in your notebook:


1.  Is federal student aid (loans) mandatory or discretionary spending?


2.  How has federal aid to students been impacted by sequestration?


3.  How have students (and which students) been impacted by changes to the federal student aid program?


4.  How was the money saved by the student loan cuts redirected within the federal budget?

Ch. 3 Review Sheet: Test Monday 10/20.

Define demand
Demand vs quantity demanded
Law of demand: P/QD relationship
Law of diminishing marginal utility
normal goods vs inferior goods
graph demand curve/label properly
factors affecting demand shifts (from group presentations)
Elasticity of demand- informal tests
Elasticity of demand- calculate using midpoint method


Define supply
Law of supply:P/QS relationship
graph supply curve/label properly
factors affecting supply shifts


Graph and interpret the result of price floors and price ceiling.  Be able to provide real life examples, the intended goals, and the unintended consequences (surplus/shortage).




For the FRQs
Be able to illustrate the market for a good and label it properly at equilibrium.  Then:


1.  Determine if the problems calls for a change in S or D.


2.  Determine in which direction that curve should move (remember left=less)


3.  Illustrate the change.  Label the new E, P, Q.


4.  Interpret the results of YOUR graph and identify the results.


Review your notes
Watch the MJMFOODIE videos on Youtube
Study the factors affecting S and D
Review all of the news related Twitter posts from 10/6 to present.

Price Floors/Price Ceilings

Use the links below.


1.  Define price floor
a.  Provide real life examples of price floors
b.  What is the intent of a price floor
c.  What are the unintended negative consequences of a price floor
d.  Illustrate a price floor on a market equilibrium diagram


2.  Define price ceiling
a.  Provide real life examples of price ceilings
b.  What is the intent of a price ceiling
c.  What are the unintended negative consequences of a price ceiling
d.  Illustrate a price ceiling on a market equilibrium diagram




http://economics.fundamentalfinance.com/micro_price-floor.php


http://economics.fundamentalfinance.com/price-ceiling.php

Ch. 3 Reading Guide 3: Due Mon 10/6

1.  Define demand elasticity.
2.  What are elastic goods?  Provide some examples.
3.  What are inelastic goods?  Provide some examples.
4.  What is "unit elastic"
5.  What are some informal tests one can use to determine elasticity of demand?


Have a great weekend.   Get outside and enjoy!

HW: Demand Curve Graphing Pratice

Attempt to graph each of the following scenarios without notes or assistance.  Be sure to label the axes, demand curves, and the direction of the change.




1.  Illustrate the demand curve for Ford trucks.  Assume the price Chevy trucks, a substitute, falls.


2.  Illustrate the demand curve for shirts.  Assume the price of Ties, a complement, falls.


3.  Illustrate the demand curve for watches.  Assume the stock market booms and consumers experience increases in wealth.


4.  Illustrate the demand curve for heating oil.  Experts predict a warm winter and record low heating oil prices this winter.

Ch. 3 Reading Guide Pert. 2 Due Wed.

1.  Contrast a change in quantity demanded to a change in demand.  Use examples.
2.  Create chart for the factors that impact demand.  For each factor provide:  A clear definition/explanation, an example, and create two additional columns but leave them blank.

Ch. 3 Reading Guide: Part I Due Tues

1. Define "market" and describe the forces acting within a market.
2.  Illustrate a properly labeled demand curve.  What is its slope? What explanations are there for the nature of the slope of a demand curve?
3.  How is market demand demand different than individual demand?
4.  Contrast normal goods and inferior goods.
5.  Identify Law of Demand and Law of Diminishing Marginal Utility.

Home Ownership For All?

Ask an American on the street to paint you a picture of the American dream and I would bet 9 out of 10 include owning a home as part of their description.  From the earliest colonists to the homesteaders to the suburbanization of America, having that "piece of dirt" on which to plan roots has been at the core of American life.


Read the link below to an excellent article in The Economist from 2009- just as the housing market bubble was bursting.


In a blog post, consider some of the following:


1.  What are the advantage of home ownership?  What are the drawbacks?
2.  How is renting viewed in the US?  Do you think these views are accurate?
3.  What are the historical views on home ownership in America?  Are they still relevant today?
4.  What does the US government do to  foster home ownership?  Are these good public policies?
5.  How is home ownership viewed in other nations- contrasted with the US?  Explore the differences.
6.  Do you plan to own a home?  How does it fit with your other priorities?








http://www.economist.com/node/13491933

Reading Guide: Ch. 2

Yay!  I can now post from school again!


Due Friday:
1.  We have already defined scarcity and discussed it as the central theme in economics.  Create a chart that contains the following information:  The 4 factors of production (resources), their definition, and a real life example for each.
2.  Investigate the Production Possibilities Curve as an economic model.  Determine:  What concepts does it illustrate, what assumptions are made in its construction, and what can be inferred from the shape of the curve?
3.  Create a properly labeled PPC in your notes.  Label points for fully utilized resources, idle resources, and unattainable use of resources. 


Due Monday: 
1.  How do new technological developments impact the economy and thus the PPC?  Explain in words and illustrate.
2.  How does trade between nations impact the PPC?
3.  Review the three economic systems (the textbook leaves out traditional).
4.  Study the circular flow model on the last page of the chapter.  Attempt the m/c questions. 

Ch. 1 Review

25 MC questions/30 minutes
All ch. 1 material and class notes
simple review sheet below
extra help in the AM if desired

Definition and purpose of economics
Scarcity
needs/wants
marginalism
all other things equal assumption
mico/macro
positive/normative economics
macroeconomic goals
fallacies and logical problems in economics
comparative economic systems
Twitter news stories

Economic Systems HW

Consider the US economy in which you are an everyday participant.  Identify at least one example of how our economy contains elements of:

1. Traditional systems

2.  Command systems

3. Market systems

Answer in your notebook.

Money=Happiness?!?!?!?

If you've grown up in suburban America, it's hard to completely escape the consumer culture that is so pervasive.  It seems that one can prove her rejection of  "materialism" by showing off an I Phone more than one version old.  While this is certainly a generalization with plenty of exceptions, it is easy to see that most of the people we interact with-if not ourselves-seem to place great value on "stuff" and the money that buys that stuff.  And while it is easy to agree that "money isn't everything" it is hard to see where we actually seem to follow this old adage.

In your blog post of about 2 paragraphs, you will want to address some of the concerns below and perhaps add some of your own.

1.  What is the "conventional wisdom" with respect to money and happiness?   Have you experienced this view?
2.  What is the author's thesis and how does it relate to the conventional wisdom?
3.  The author gives a lot of attention to a critical "income threshold" for understanding the money/happiness relationship.   What is this all about?  What do you think of this assertion?
4.  Evaluate the author's thesis.  Is she correct?  To what extent?  What flaws, if any, are present in your view?
5.  How are the views on money expressed in the article compatible with the views expressed by your family?  Yourself?  This is a great opportunity to discuss at home!
6.  To what extent has money/income affected your college and career choice?  If salary was not an issue, would you pursue a different major?   Is this a valid criterion in the decision?
7.  You own questions or comments.