Chapter 3 Reading Guide (part 2)

1.  Draw the demand curve for trucks, a normal good.  Illustrate the impact of a decrease in the price of the substitute, cars.
2.  Draw the curve for ranch dressing, a normal good.  Illustrate the impact of a decrease in the price of the substitute, Italian dressing.
3.  Draw the demand curve for heating oil.  Illustrate the impact of an anticipated decrease in heating oil prices.

4.  Define "elasticity of demand".
5.  What does it mean if a good exhibits elastic demand?  Provide some examples of goods whose demand is likely to be elastic.
6.  What does it mean if a good exhibits inelastic demand?  Provide some examples of goods whose demand is likely to be inelastic.

Enjoy the long weekend and the holiday if you are observing!

Optional Debate Assignment-Fact Checking The Debate

I'm glad you have taken the time to watch and enjoy last night's debate.  While so many issues were discussed, I would like you to focus on just one economic exchange between the candidates. 






Step 1:  Select an issue from the list below.


1.  International Trade




2.  Income Taxes (as a policy, not the release of candidates' tax returns)




3.  Unemployment rate/jobs/wages




Step 2:  Watch a the debate or review the sections you need


http://www.nytimes.com/video/us/politics/100000004673000/full-video-first-presidential-debate.html




Step 3:  Identify the statements made on the issue by each candidate.


Summarize, in a paragraph for each candidate, the assertions made by each candidate.


Step 4:  Fact check the assertions made by each candidate.  Break down their statements into individual claims. Then, utilizing multiple sources which you will identify, attempt to verify the validity of each claim.  At the end, make a determination in your own view, as to which candidate is being more truthful and justify your explanation. 

Ch. 3 Reading Guide: Part I

1.  Define demand.


2.  Contrast normal goods and inferior goods.  Provide an example of each.


3.  Provide a real life example of the Law of Diminishing Marginal Utility.


4.  Create a chart identifying each of the non-price factors affecting demand.  Name each factor, illustrate the impact of an increase in that factor, illustrate the impact of a decrease in that factor.






That's it!

Ch. 1 and 2 Review Sheet

In addition to the economic model practice from class today, you should study:


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
components and relationships of the circular flow

Reading Guide Ch. 2 (part 2) Due Tues 9/20

1.  Define the Law of Increasing Opportunity Cost.


2.  Illustrate an increasing opportunity cost PPC.  Label point A as fully utilized resources.  Label point B as idle resources.  Label point C beyond the production possibilities frontier.  


3.  Identify a list of factors that may cause an economy to produce at each point.


4.  Pre-read the "economic systems" section beginning on P. 33.


5.  With respect to the Circular Flow Model of the Market Economy, define:
a.  Product Market
b.  Factor Market
c.  Businesses/Firms
d.  Consumers/Households


Have a great weekend!  Get outside!!

Ch. 2 Reading Guide (part I)

1.  Define the "economizing problem".


2.  Know that economists divide resources into four distinct categories often called the factors of production.  Create a chart that includes the name of each factor of production, a definition of each, and a real world example of that resource. 




That is all :)

Chapter I Reading Guide

Chapter 1: Reading Guide

 

1. Consider the textbook definition of economics from page three.  If someone told you that a course in economics is the same as a course in business would you agree or disagree with them?  Justify your answer.
2. What is the concept of scarcity?  Pick a good or service from your life?  Is it “scarce” in economic terms?  Explain why or why not.  Draw upon your definition of scarcity to do so.
3. Economists argue that all economic decisions have “opportunity costs.”  What is meant by this concept?  Explain one example of how opportunity cost impacted you this past summer.
4. Consider the section entitled “economic methodology.”  Do you think that economics is more of a science or more of an art?  Explain.
5. Economists rely heavily on the assumption of “Ceteris Paribus” in developing economic theories.  What does this mean?  Why is it important to observe this assumption?  What problems may result from failing to do so?
6. Identify the 8 macroeconomic goals of a market economy?  Are there any goals that seem contradictory to you?  Explain.
7. Contrast microeconomics and macroeconomics. Provide an example of an issue that may be studies in each field. 
8. Contrast positive economics and normative economics.  Provide an example of a positive statement and a normative statement.
9. Explain how two variables may be “correlated” without necessarily having a cause/effect relationship?
10. On a recent trip to Carvel you took advantage of the “Buy one Get one Free” sundae deal on Wednesdays.  Economists would argue that no such deal could exist because “nothing is free.”  Who is correct?  Explain.

 

Vocabulary Terms

Economics                                                                                           

Bias

Loaded Terminology                                                                         

Scarcity                                                                                                                

TINSTAFL

Tradeoff

Opportunity Cost

Microeconomics

Macroeconomics

Ceteris Parabus

Correlation vs Causation

Microeconomics

Macroeconomics

Positive Economics

Normative Economics

Utility