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.