Ch. 7 Reading Guide

Dues Tues. 10/20
Read. p 112-118 (really read it!)
1.  Identify the four components of GDP using the expenditures approach.  Create an example of a transaction which would be counted under each transaction.
2.  Identify examples of transactions that would be excluded from GDP.  Provide an example of each.
3.  Explain the concept of "unplanned investment" and how it relates to the calculating GDP.




Due Thursday. 10/22.
Read p. 123-127
1.  Explain the difference between real and nominal GDP (or real vs nominal anything).
2.  Complete questions 7 and 12 on p. 129.




Due Friday, 10/23.
1.  What are the4 drawbacks, shortcomings, and failures of GDP as an accurate indicator of our economy?

Blog Response II: The American Dream Is Dead (or not)

Have you ever thought about the American dream?  Did you learn about it in history class?  Discussed it with your parents?  Are you living it right now?  Or is a concept that is dead and gone?


Read and watch the sources linked below.  In a short blog post, consider issues like the historical origins of the American dream, what is has meant throughout our nation's development, and what it means to our modern society?  Has pursuing the "dream" always been positive, or has it been harmful in some ways?   How do you and your friends view the American dream.  Post your response tonight.  This would be a great topic to discuss with parents, grandparents, neighbors, and friends!












What is the American Dream?  Is it alive and well?  Watch and read.
http://www.cbsnews.com/news/still-believing-in-the-american-dream/


Is the Dream Still Alive?    Read the point of view of all contributors to this NY Times debate.
http://www.nytimes.com/roomfordebate/2015/01/01/is-the-modern-american-dream-attainable




Home Ownership and the Dream:
http://www.spiegel.de/international/world/a-superpower-in-decline-is-the-american-dream-over-a-726447-2.html

Additional Review Terms

Be sure to study:


Laws of S and D, the S and D schedules and curves, and the relationships illustrated by them


Law of Diminishing Marginal Utility


Price Floors and Ceilings (important!)


Demand Elasticity


Normal vs Inferior goods


All supply and demand factors


Good luck!

Graphing Review Solutions

1.  Demand Right
2.  Demand Left
3.  Supply Left
4.  Insert the price ceiling below equilibrium,  Result is a shortage of  power.
5.  Demand Left
6.  Supply Left
7.  Demand Left
8.  Insert the price floor above equilibrium.  Result is a surplus of labor.
9.  Demand Left
10.  Supply Left
11.  Supply Left
12.  Supply Left
13.  Supply Left
14.  Demand Right
15.   Supply Left

Reading Guide: 3 continued

Due Tuesday, 10/6
1.  Define supply.
2.  Explain the Law of Supply.  Contrast it to the Law of Demand that we have already discussed.
3.  Create your own example of how the Law of Supply functions in a real-life situation.
4.  List and explain each of the factors affecting the supply curve.






Due Wednesday, 10/7
1.  Define price floor.  Provide an example
2.  Define price ceiling.  Provide an example.
3.  Page 57- Study question #5