CP Economics (Period 2) Assignments

Mon., 3/18

Topic: Perfect Competition

Agenda:

1. Answers to webquiz from Friday.

2. Lecture & Powerpoint: Perfect Competition--All Slides

3. Short run vs. Long Run

A. Short Run

a. MR (also P)=MC--profit maximizing

b. P>=ATC—economic profit

c. P<=ATC--economic loss

d. If suffering a loss, then

e. P>=AVC--stay open

f.  P<AVC--immediately close

 

Tues. 3/19

Topic: Perfect Comp

Agenda:

1. Complete powerpoint from yesterday.

2. Activity 32—show on overhead—walk through samples of MC and MR calculations. Make students do one or two rows in AVC, ATC, MC chart and then have them graph them. Answer questions for graphs.

3. On the Board—what happens to market in the long run? Supply will shift right (if profits), price will fall, MR. DARP will fall, and profits will disappear. Supply will shift left (if losses), price will rise, MR. DARP will rise and losses will disappear. YOU CAN NEITHER LOSE NOR MAKE ECONOMIC PROFITS OR LOSSES IN THE LONG RUN.

4. Long Run--Assumptions

A. Entry & exit are easy.

B. Identical cost curves for all firms.

C. Constant cost industry.

a. Lose $--company will leave.

b. Make $--companies will enter.

c. 0 profits in the LR

d. P=MR=MC=(min)ATC

5. Assign: Act. 34 and Sample Perfect Comp Quiz.

6. Download Perfect Competition Study Guide

 

Wed., 3/20

Topic: Perfect Comp—Long Run and Review

Agenda:

1. Review Activity 32 & 34 Graphs—Short Run to Long Run Equilibrium

2. Act. 34

A. How to read a chart

B. How to read a graph

 

Thurs., 3/21

Topic: Perfect Comp Quiz Review

Agenda:

1. Sample Quiz Answers

2. Cost Curve Sample Quiz Questions

3. Review of info for Quiz tomorrow.

4. Assignment: Prepare for Quiz.

 

Fri., 3/22

Topic: Perfect Comp Quiz

1. Quiz

2. Assign: Read 7.2 for Monday.

Mon. 1/14

Topic: Section 3: Budget Deficits & the National Debt—Economics USA: Federal Deficits; Chap. 30 in M&B; Self-Quiz PhSchool.com: mna-6157

Agenda:

1. Balancing the Budget: terms: balanced budget, budget surplus, budget deficit

A. Responding to Budget Deficits

B. Creating Money—bad, causes inflation, even hyperinflation

C. Borrowing Money—treasury bills, notes & bonds

2. The National Debt—currently $15 trillion

A. The Difference Between Deficit & Debt—deficits create debt, debt is the total of all deficits (if the money is borrowed, which it always is).

B. Measuring the National Debt—as a percentage of GDP—currently 100%

3. Is Debt a Problem?

A. Problems of a National Debt—crowding out effect—gov’t borrowing soaks up money, depriving private

Sources; $ spend servicing the debt can’t be spent on other things

B. Other View of a National Debt—and important tool, but you can’t run one forever.

4. Deficits, Surpluses & the National Debt—discuss Reagan-Bush I-Clinton-Bush II-Obama deficits & surpluses

A. Efforts to Reduce Deficits

B. End of Century Surpluses

C. Return to Deficits

5. Econ USA: Federal Deficits

6. Chap. 16, Sec. 2 (422-23 Regulating the Money Supply only); Chap. 16, Sec. 3 (426-7 The Money Multiplier only); Chap. 16, Sec. 4

 

Tues., 1/15

Topic: The Fed and The Money Supply

Agenda:

1. 16-2: Regulating the Money Supply—Definition of M1, M2 and M3 in book. Fed compares this money supply with likely demand and makes adjustments accordingly.

A. Factors that Affect Demand For Money

1. Cash needed on hand—need cash to buy things. The more $$ you have the easier to buy.

2. Interest rates—cash doesn’t earn interest. High rates cause people to save rather than spend. They

literally demand less cash.

3. Price levels in the economy—higher prices demand more money to pay them.

4. General level of income—as GDP rises, people keep more of their wealth in cash.

B. Stabilizing the Economy—goal of the Fed is to keep the money supply stable—not too much money (inflation) not too little (deflation), which would slow economic expansion.

2. Money Multiplier—what is it and how do you calculate it? 1/RRR = Money Multiplier Effect

3. 16- 4—Monetary Policy and Macroeconomic Stabilization; mna-6168 self-quiz;

4. How Monetary Policy Works—money supply affects interest rates, which affect investment and spending.

A. The Money Supply & Interest Rates—the interest rate is the price (cost) of money. Market for money is a simple S and D graph—show on board what happens when money supply shifts.

B. Interest Rates & Spending—if economy contracting, increase money supply (Easy Money Policy) which lowers interest rates and encourages borrowing and spending. If economy expanding too fast, decrease money supply (Tight Money Policy), increase interest rates and discourage borrowing and spending—show on board the relationship between the Money Market and the overall economy (Money Supply influences AD, which affects GDP).

5. The Problem of Timing

A. Good Timing—if timed properly, monetary policy can help smooth out the business cycle—highs less high and lows less low.

B. Bad Timing—can exacerbate swings—if you think you are declining when you are really expanding, and you expand the money supply, this will cause inflation and overproduction. The opposite may also happen, making recessions much worse (done during the Great Depression).

6. Policy Lags

A. Inside Lags—before a policy can be implemented you must:

1) Identify the problem (know you are in a recession, for instance), then

2) Enact the policy. Less a problem for monetary policy than fiscal policy, which must be done by

Congress & the President.

B. Outside Lags—one policy is adopted, how long does it take to be effective? Fiscal policy is fast—gov’t spending effects GDP in 6 months. Monetary policy, because it mostly effects business investment and borrowing, which is slow and complicated, takes up to 2 years.

7. Predicting Business Cycles

A. Monetary Policy & Inflation—depends heavily on how long you think the problem will last. If just a short burst, either up or down, may be best to leave things alone.

B. How Quickly Does the Economy Self-Correct? Disagreements—2 to 6 years—that is a big difference.

8. Approaches to Monetary Policy—no good answers to whether to intervene in economy or not—not yet, anyway.

9. Assign: Chap. 17: 441-5, 449-52, 458-60 & 462-4

 

Wed., 1/16—Double Late Start

Topic:

Agenda:

1. Left over items from yesterday.

2. Intro to International Trade

 

Thurs.1/17

Topic: Int’l Trade-Chap. 17

Agenda:

1. Power Point: Comparative Advantage

2. Trade Barriers

3. Currency Exchange

 

Fri., 1/18

Topic: Final Exam Review

Agenda:

1. Exam Review

Mon., 1/7

Topic: Chap. 14, Sec. 2-Federal Taxes

Agenda:

1. Turn in completed self-quizzes. No name=no credit.

2. W-4 form—who filled it out correctly?

3. Taxes

A. How much does the gov’t collect in taxes?

B. Where does this tax money come from? (What kind of taxes: income, corporate, etc.)

C. Why do you file a return? To get a refund!

4. Individual Income Taxes

A. Pay-As-You-Earn

B. Tax Withholding

C. Filing a Tax Return

1. Tax Return

2. Taxable income and deductions

3. Personal Exemptions

4. Deductions

D. Tax Brackets—6 tax rates depending on how much income you made

5. Corporate Income Taxes

6. Social Security, Medicare & Unemployment Taxes—FICA for SS & Medicare

unemployed.

7. Other Types of Taxes—G.E.E.T.S.

A. Gift Taxes

B. Excise

C. Estate

D. Tariffs

E. “Sin” Taxes

8. Assign: Download Final Exam Review Sheet

 

Tues., 1/8

Topic: Chap. 14, Sec. 2-Federal Taxes

Agenda:

1. Simulation: Filing income taxes using the 1040EZ form.

A. Handout: Instructions for completing Form 1040EZ

B. Handout: Sample W-2s

C. Handout: Blank 1040EZ forms.

D. Handout: 1040EZ Instruction Booklet

2. (If time) Small Group Wrap-up: Where did you make your mistakes? Why? What did you learn?

3. Turn in 1040EZ for credit.

4. Assign: Read Chap. 14, Sec. 3; Do self-quiz—turn in tomorrow.

 

Wed., 1/9

Topic: Chap. 14, Sec. 3-Federal Spending

Agenda:

1. Turn in Chap. 14, Sec. 3 Self-quiz

2. Mandatory & Discretionary Spending

3. Entitlement Programs—

A. Social Security

B. Medicare

C. Medicaid

D. Other Mandatory Spending Programs—SSI, food stamps, veterans benefits, federal worker benefits

E. Future of Entitlement Spending

4. Discretionary Spending

5. Federal Aid to State and Local Gov’ts

A. Changed from Grants-in-Aid to Block Grants.

6. Federal Budget—on Smart Board

7. Assign: Chap. 15, Sec. 1 (389-93 only)

 

Thurs., 1/10

Topic: Chap. 15, Sec. 1-(p. 389-93 only) Understanding Fiscal Policy: Self Quiz PHSchool.com mna-6155;

Agenda:

1. Fiscal Policy & the Economy—should we expand (spend) or contract (cut spending)?

2. Expansionary Fiscal Policies—demonstrate the effect on the AD curve on board. What should the gov’t be doing now?

A. Increase Spending

B. Cut Taxes

3. Contractionary Fiscal Policies

A. Decrease Spending

B. Increase Taxes

4. Limits of Fiscal Policy—Look at Obama’s budgets and see which problems from below may be important

A. Entitlement programs are hard to cut—60% of the budget is entitlements. Discretionary spending can be cut, but you have to cut a lot to make a difference.

B. Hard to predict the future—where is the economy now? What will people do with less/more $?

C. Delayed Results—How do you know if it works? Maybe the economy was already recovering. Maybe you

caused an inflationary leap. Again, the future is hard to see.

D. Political Pressures—what is good for the election isn’t necessarily good for the economy.

E. Coordinating Fiscal Policy—

1. State & Federal sometimes work at cross purposes

2. Different areas of the country may be experiencing differing economic conditions

3. Short term effect (growth) good, long term effect (inflation) bad.

5. Assign: Chap. 15, Sec. 2 (except 399-401 supply side econ and fiscal history)

 

Fri., 1/11

Topic:

Sec. 2-Fiscal Policy Options: Self Quiz PHSchool.com mna-6156;

Agenda:

1. Classical Economics—the economy regulates itself—Great Depression is a problem for this theory, because how long is the “long run”. Are people really willing to wait?

2. Keynesian Economics

A. A Broader View—Keynes looked at macro, not just micro. He said that productive capacity was not being reached because no one—business or consumers—was willing to spend. The gov’t must do it.

B. A New Role for Gov’t—gov’t should buy when biz & consumers don’t—demand-side economics—spending to lift demand. Keynesianism says the gov’t should help offset the business cycle.

C. Avoiding Recessions & Depressions—when times are bad—spend. Problems: are they “good” productive jobs? Do they “crowd out” private sector jobs?

D. Controlling Inflation—gov’t could also cut spending or increase taxes to reduce demand.

E. The Multiplier Effect—give example of the multiplier effect—spending of money

F. Automatic Stabilizers—when economy is growing, taxes increase and less unemployment & welfare—surpluses decrease demand; when economy is shrinking, taxes decrease and spending goes up—deficits boost demand.

4. USA Video: The Keynesian Revolution & the Great Depression

5. Assign: Chap. 15, Sec. 3

Mon., 12/10

Topic: Economic Growth Simulation

Agenda:

Topic: Economic Growth: Chap. 12-3

3. Simulation

4. Assign: Chap. 13-1

(Sub did not finish simulation Sec. 3-5)

 

Tues., 12/11

Topic: Chap. 13, Sec. 1-Movement of Aggregate Demand and Aggregate Supply Curves

Agenda:

1. External/Exogenous Demand & Supply Shocks

 

Wed., 12/12—Late, late start day

Topic: Unemployment

Agenda:

1. Unemployment

A. Frictional

B. Seasonal

C. Structural

D. Cyclical

2. Measuring Unemployment

A. Monthly poll of 50,000 families conducted by the Dept. of Labor.

B. Unemployment Rate

1. Seasonally adjusted

2. Rate is national—doesn’t reflect rate in a particular area or state.

3. Full Employment

4. Underemployment

5. Discouraged Workers

 

Thurs. 12/13

Topic: Chap. 13-2: Unemployment & Inflation:

Agenda:

1. Activity 13

2. Activity 14(if time))

3. The Effects of Rising Prices

4. Price Indexes

A. Using Price Indexes

B. The Consumer Price Index (CPI)

C. Price Indexes and the Inflation Rate—not important

D. Determining the CPI—difference/original price

E. Calculating Inflation Rate—never mind

F. Types of Inflation

1. Core Inflation

2. Hyperinflation

5. Causes of Inflation

A. Quantity Theory:

B. Demand-Pull Theory:

C. Cost-Push Theory

1. Wage-Price Spiral

6. Effects of Inflation

A. Purchasing Power

B. Incomes

C. Nominal Interest Rates & Inflation

7. Recent Trends—low inflation since the late 70s

8. Activity 12—Who is hurt and who is helped by inflation

9. Assign: Chap. 13-3

 

Fri., 12/14

Topic: Chap. 13-3: Complete Inflation Section--then Poverty

Agenda:

1. (Complete from yesterday) Activity 12—Who is hurt and who is helped by inflation

2. The Poor

A. The Poverty Threshold

B. The Poverty Rate

1. High for Hispanics and African-Americans

2. High for single mother households

3. Children have a high poverty rate

4. Inner city and rural rates very high

2. Causes of Poverty

A. Lack of Education

B. Location

D. Economic Shifts

E. Shifts in Family Structure

3. Income Distribution

A. Income Distribution—very bad in US, worst since the 1930s.

1. Richest 2.7 million make as much as bottom 100 million.

B. Income Gap—getting worse over the last 25 years—why?

1. Skills and Ed.

2. Inheritances

3. Field of work

4. Antipoverty Policies

A. Enterprise Zones

B. Employment Assistance

C. Welfare Reform—workfare—work to get welfare.

D. Working Poor

Agenda for Dec. 3 - 10

Mon., 12/3

1. Econ USA: GNP/GDP

2. Take quiz on PHSchool.com website. code: mna-5125 

3. Assign: P. 306 - 308

 

Tues. 12/4

Topic: GDP--Aggregate Supply & Demand

Agenda:

1. Influences on GDP—Aggregate Supply & Demand—Reffonomics website

2. Handout: Activity 16—front--for note taking. Aggregate Demand—like old demand curve with some differences. Why does the curve slope down?

a. Wealth (Real Balances) Effect—high price less consumption, low price more consumption

b. Interest Rate Effect—assume money supply is constant

i. Low price = low interest rate=more spending

ii. High price= high interest rates = reduced consumption (hard to pay off loans)

c. Net Export Effect—price rises, fewer exports, more imports, hurts GDP; conversely, more exports, fewer imports, GDP rises.

3. Differences between AD and D

a. No substitution effect—can’t substitute when it uses all goods & svcs.

b. No Income effect—low price means less incomes

4. Activity 17—front page for notes--Aggregate Supply—pretty much like old Supply curve—it is a price/quantity relationship

5. Introduce the Supply Curve showing the “three-sided” curve—short run is elastic, medium run sort of inelastic and long run perfectly inelastic; also can be: elastic is recession; inelastic is full employment and middle section is, well, somewhere in the middle.

 

Wed., 12/5

Topic: Aggregate Supply Curve Shape and Movement-Chap. 12-1

Agenda:

1. Quick Review of AD/AS shape

2. What causes AD to Shift?—Activity 16 back page

3. What causes AS to shift—Activity 17 back page:

i. Price of Inputs (C.E.L.L.)

ii. Productivity

iii. Technology

iv. Gov’t taxes, subsidies & regulations

4. Assign: Chap. 12-2

 

Thurs., 12/6

Topic: The Business Cycle—12-2.

Agenda:

1. Handout: Activity 18 for AS and AD equilibrium

2, Demand-pull inflation/Cost-push inflation:

3. The Business Cycle--Phases

A. Peak

B. Recession

C. Trough

D. Expansion

E. Stagflation

4. Causes of the Business Cycle

A. Some believe it is caused by changes in productivity, while other theorists believe it is the result of momentous innovations (cotton gin, electronics).

B. The main cause for fluctuations in the business cycle is changes in the level of total spending

C. Productivity

D. Peaks are only temporary because at full employment, real output can hardly rise anymore while the spending keeps increasing. This results in inflation.

5. Impacts of the Business Cycle

A. Capital goods and consumer durables are affected most by the business cycle

B. Service industries and industries that produce nondurable consumer goods are somewhat insulated

6. The Business Cycle is dependent on the Aggregate Demand and Aggregate Supply Curves.

A. The intersection of the aggregate demand curve AD and the aggregate supply curve AS establishes the economy's equilibrium price level and equilibrium real output.

Impacted by Shifts in Aggregate Demand and Aggregate Supply.

B. (if time) Video: Economic Growth/Booms & Bust

7. Chap. 12-3

 

Fri., 12/7

Topic: Economic Growth Simulation: Chap. 12-3: Day 1

Agenda:

1. Simulation

 

Mon., 12/10

Topic: Economic Growth Simulation: Day 2

Agenda:

1. Simulation

2. Assign: Chap. 13-1

Mon. 11/26

Topic: Defending Your Stocks—present your stocks and philosophy to the class

Agenda:

1. Review return and liquidity, look at different CD rates based on time.

2. Review return and risk

-Reading “How Much Risk Can You Tolerate?”

3. Other Financial Assets

CDs-good because of low price points, many term lengths, ultra safe

Mutual Funds (stocks, bonds, etc.) and Money Market Mutual Funds-these funds buy short term financial assets—more risk, more reward than savings accounts, but not insured

4. Financial Asset Markets

-Capital Markets—financial assets w/ maturity terms of more than 1 yr.—mostly corporate and gov’t bonds

-Money Markets-less than 1 yr.—treasury bills, short term CDs

5. Stock splits

6. Stocks--more risk more reward than other investments

7. How to read a stock report--pg. 287

8. Stock brokers and brokerage firms are intermediaries between companies and investors.

9. Stock exchanges/markets

A. NYSE--large, well-known companies

B. NASDAQ--electronically traded stock

10. Futures options--usually grains and livestock

A. Call option--an option to buy a stock at a certain price at a certain date

B. Put option--an option to sell a stock at a certain price on a certain date

11. Day trading

12. Bull and bear markets

13. Dow jones--30 large companies that “represent” the whole market

14. S & P 500--500 companies that “represent” the whole market

15. Crash of 1929

 

Tues. 11/27

Topic: Computer Lab—Stock trading game

Agenda:

1. Buying stocks in library/computer lab for stock market game. Lab not available. Signup will have to be in class—if I can get IT to unblock the website…

 

Wed., 11/28

Topic: Financial Intermediaries

Agenda:

1. Why do we save?

a. for emergencies (gaps in incomes)

b. Delay consumption in order to spend more later

c. Want excess income to generate $$--we are unable to invest in our own skills or business

2. Why do we borrow?

a. Borrow so we can consume now and pay later

b. Have an idea or project but do not have money

3. Financial Intermediaries link excess income from savers with ideas or projects of producers. Examples:

a. Banks, Savings & Loans, Credit Unions—differences and similarities of these institutions—see Google Advisor for sample interest rates.

b. Finance Co.’s—pay day loans

c. Mutual Funds—pool funds in stocks, bonds, various other financial assets and invest to diversify risk

d. Life Insurance—use excess funds (see 1a) to invest in (see 2b)

e. Pension Funds—same as d.

4. Advantages of intermediaries

a. Share risk—diversification—don’t put all your eggs in one basket.

b. Provide info about investments—less true now than it used to be.

c. Provide liquidity—can get $ faster and easier than if you buy a “hard” asset like a house or a car.

5. Essential Ideas:

a. Return and liquidity are tradeoffs--$ has a time value—the longer the term the higher the interest rate.

b. Return and risk move together—if you think you might lose your $, you will demand more $ in return.

 

Thurs., 11/29

Topic: Review for Chap. 11 Exam on Fri.

Agenda:

1. Exam Review Breakdown

A. 11-1: 12 qs

B. 11-3: 22 qs

2. 11-1

A. Calculating Returns

B. Financial Intermediaries and Investment Types

C. Risk & Return

D. Prospectus

E. Investment—different than consumption?

4. 11-3

A. Bull & Bear Markets

B. Stock and Stock Characteristics

C. Stock Types

D. Stock Tables—reading them

5. Sample quizzes are at PHSchool.com

For 11.1: code is mna-4115

For 11.3: code is mna-4117

 

Fri., 11/30

Topic:

Agenda:

1. Short Chap. 11 quiz

2. Assign: Chap. 12-1

Mon., 11/12—Veteran’s Day—No School

 

Tues., 11/13

Topic: Money—we can either discuss what you read—or take a test. It is up to you.

Agenda:

1. Judges should turn in their results.

2. Students Paired up.

3. Answer the Section 1 Assessment on p. 248 of textbook.

4. Check answers.

6. A 10 question on-line quiz. When finished click at the bottom and it will show you your score.

6. Assign: Chap. 10, Sec. 2 & answer questions 1-3 on p. 256.

 

Wed., 11/14

Topic: Banking

Agenda:

1. Section 2 Assessment Review

2. Show Video: The Banking System

3. Hand out Chap. 10-Self-Assessment

4. Assign: Go to PHSchool.com and put in code mna-4106 and test your knowledge of Section 2. Read Chap. 10, Sec. 3; Go to PHSchool.com and put in code 4107 and test your knowledge of Section 3. Complete Chap. 10 Self-Assessment given out in class.

 

Thurs., 11/15

Topic: Test on Chap. 10—or an overall discussion of Chap. 10 issues

Agenda:

1. Test on Chap. 10—Answers go on a separate sheet, not on the test.

2. (If time) Trade and grade in class. Each question is worth 2 points.

3. Assign: Chap. 11.3

 

Fri., 11/16

Topic: The Stock Market

1. Stock Market Game—Setup and Preparation

Mon., 11/5

Topic: Imperfect Comp. Quiz

Agenda:

1. 30 M/C and 1 graph Quiz

2. Assign: Students number off 1-4. Read the section of Chap. 8 that corresponds with your number and Create a 3-column chart (typed) for the type of business organization discussed in your section.

Column 1: Characteristics Column 2: Strengths Column 3: Weaknesses

For section 4, Cooperative and Nonprofit Organizations will only need column 1 completed. You must bring 4 copies of you chart to class tomorrow.

 

Tues., 11/6

Topic: Chap. 8—Business Organizations

Agenda:

1. Form groups of at least 4 people. Each group must have one person who has read and completed the chart for all four sections of the chapter. Completed charts will be stamped.

2. Give a copy of your 3 column chart to each person in your group.

3. Answer the Key Terms and Main Ideas Questions at the end of each section. Complete them as a group. Students who have not completed the chart will be in a group together.

4. Handout: Answers for all sample questions.

5. Assign: Test tomorrow on Chap. 8. All questions are from the book—I highly recommend doing the sample on-line quizzes that come with your textbook.

 

Wed., 11/7

Topic: Test on Business Organizations

Agenda:

1. Turn in stamped charts for credit.

2. Exam—39 M/C questions only.

3. (If time) Trade and grade.

4. Turn exams in to proper period tray.

5. Assign: Read Chap. 9-2 for tomorrow.

 

Thurs. 11/8

Topic: Debate: Laws Should Guarantee Women Equal Pay for Equal Work

Agenda:

1. Debate: 3 groups: Affirmative, Negative, Judges

A. Affirmative must address the following questions/issues:

1. What is the problem?

2. Is it a significant one?

3. Who is harmed if this problem is not solved?

4. Propose a plan—how much and how fast?

5. Show how your plan will solve the problem.

B. Negative must:

1. Refute all aspects of the affirmative team presentation.

2. Defend the status quo.

C. Judges must--Track all arguments in the debate and use these to justify their declaration of a winner. In other words, it is not enough to merely say which side won. Judges must discuss each of the points raised by the affirmative team and how each argument was—or was not—refuted by the negative team. They must then render a judgment as to which side made the better/more persuasive arguments.

2. The Affirmative and Negative must have a minimum of four students per side. All other students will be judges.

3. You may have all of the class period today to prepare. The debate is tomorrow. Anyone not present for the debate will be given a makeup exam.

 

Fri., 11/9

Topic: Debate—50 pts. for participation, plus a bonus for the winning side. 50 pts. for a complete write-up

Agenda:

1. The debate format is as follows:

Affirmative will open with a max 12’ presentation on why Laws Should Guarantee Women Equal Pay for Equal Work

Negative will be able to ask questions for 6’, attacking the affirmative presentation.

Negative will then have 12’ to refute the Affirmative plan.

Affirmative will be able to ask questions for 6’, attacking the affirmative presentation.

The Affirmative team will then have 6’ to sum up and give final arguments.

The Negative team will then have 6’ to sum up and give final arguments

2. Judges will have until Tuesday to type up their results and render their opinions.

3. Assign: Chap. 10, Sec. 1 and Bring your book to class on Tuesday.

Agenda for Oct. 29 – Nov. 2

Mon., 10/29

Topic: Perfect Comp Quiz

Agenda:

1. Quiz

2. Assign: Read 7.2

 

Tues., 10/30

Topic: Monopoly

Agenda:

1. Powerpoint-Monopolies

2. Quickly run over Activity 39

3. Assign: Read 7-4—understand why companies (particularly monopolies) are regulated; Download Unit 3 Study Guide-Imperfect Competition

 

Wed., 10/31

Topic: Monopoly, Regulated Monopoly & Price Discriminating Monopoly,

Agenda:

1. Do Activity 38 on board/smartboard.

2. Draw monopoly graphs on whiteboard

3. Do a monopoly graph on board, then do a Price Discrimination graph—MR curve swings over and MR=D=AR=P is back in business! What do we mean by Price Discrimination?

4. Regulating a Monopoly

A. Anti-trust or regulation?

B. Regulation—block mergers—but not all—why not?

C. If you regulate, how?

1. Socially Optimal MC=P

2. Fair Return ATC=P

D. If regulation doesn’t work—deregulate.

6. Assign: Read 7-3

 

Thurs., 11/1

Topic: More Monopoly & Monopolistic Comp

Agenda:

1. Whiteboard: Monopoly graphs—show where profit/loss is—common error on perfect comp exam.

2. Regulating a monopoly—on whiteboard.

3. Activity 41

4. Monopolistic Competition

A. Description/characteristics

1. Many (generally smaller) Firms—not as many as P.C., but close.

2. Few Barriers to entry

3. Some pricing power—but not much

4. Differentiated product—this is what really makes a MC market.

a. Location

b. Product Characteristics

c. Level of Service

d. Advertising/marketing/brand loyalty

B. MC Firms have higher prices and lower production than PC—but they still don’t make an economic profit. Because firms limit production, the industry as a whole has “excess capacity.”

5. Assign: Handout: Sample Questions for monopolies

 

Fri., 11/2

Topic: Oligopoly and Exam Review

Agenda: Do all four markets on white board

1. Oligopoly: What you need to know

A. Description/characteristics

1. Big firms

2. Few competitors

3. Differentiated or homogeneous product

4. High barriers to entry

5. Profits—particularly if they collude

B. "Sticky" price and output

2. Answers to Handout: Sample Monopoly Qs/Sample MC Qs from test.

3. How to calculate Marginal Revenue.

4. MR >= to MC—you will make and sell that Q

5. Sample Monopoly Graph—then regulate it. Sample Monopoly graph, then turn it into PC

6. Sample Monopoly chart—how to read it

7. Final Hints for Quiz—8 matching, 22 M/C and 1 graph

Mon. 9/15

TOPIC: Chap. 5.2 Costs of Production

Agenda:

1. Grade Graphing section of test

2. Production Costs

a. What are they?

a. Fixed Costs + Variable Costs = Total Costs

b. Averages (Costs per piece)AFC + AVC = ATC

c. Marginal Cost—why is this # important?

d. Marginal Cost—why is this curve shaped like a check mark?

i. Increasing and Diminishing Returns

e. How are MC, AVC and ATC related?

3. Short Run vs. Long Run Production Costs

a. All costs are variable in the long run

b. Economies or Diseconomies of Scale (ATC curve)

 

Tues. 9/16

Topic: Costs of Production

Agenda:

1. Production Costs (cont’d from yesterday)

b. What are they?

a. Fixed Costs + Variable Costs = Total Costs

b. Averages (Costs per piece)AFC + AVC = ATC

c. Marginal Cost—why is this # important?

d. Marginal Cost—why is this curve shaped like a check mark?

i. Increasing and Diminishing Returns

e. How are MC, AVC and ATC related?

2. Short Run vs. Long Run Production Costs

a. All costs are variable in the long run

b. Economies or Diseconomies of Scale (ATC curve)

3. Costs are directly related to productivity—the more productive you are, the lower your costs will be. Example of 1 worker producing differing amounts of goods.

4. Handout: Sample Problems—do together in class

5. Assignment: Read Chap. 7-1;

 

Wed. 9/17

Topic: Costs of Production

Agenda:

1. Exam Review—constructed response only

1. Handout: Sample Problems-complete together in class

2. Handout: Sample M/C Questions—start on question 6-complete for tomorrow.

 

Thurs., 9/18

Topic: Perfect Competition

Agenda:

1. Lecture & Powerpoint: Perfect Competition--All Slides

2. Short run vs. Long Run

A. Short Run

a. MR (also P)=MC--profit maximizing

b. P>=ATC—economic profif

c. P

d. If suffering a loss, then

e. P>=AVC--stay open

f. P

3. Activity 32—start in class

 

Fri., 9/19

Topic: Perfect Comp--short run & long run.

Agenda:

1. Activity 32—show on overhead—walk through samples of MC and MR calculations. Make students do one or two rows in AVC, ATC, MC chart and then have them graph them. Answer questions for graphs.

 

Mon. 9/8

Topic: Supply & Demand & Market Equilibrium

Agenda:

1. Lesson: What happens when both D & S change?

2. Grade M/B Chap. 3 homework. All questions worth 1 pt.

3. Handout: Supply & Demand White Board Questions—students may work in pairs. Each row will answer 5 questions and then present on the board.

6. Presentation of answers on the board.

7. Assign: Chap. 4-5-6 Sample Questions; Answers can be downloaded below. Re-read Chap. 4-3 and p. 104-6; EXAM STUDY GUIDE—Unit 2 Study Guide available for download below.

 

Tues. 9/9

Topic: Elasticity of Demand

Agenda:

1. Elasticity of Demand

A. Definition of elasticity—use slinky and football or other non-bouncing object.

2. Elasticity of Demand

A. Definition of elasticity—sensitivity to price or how much does consumption increase or decrease when price changes?

3. S.P.L.T—Demand Elasticity

Substitutes—More-Elastic; Less-inelastic

Percentage of Y—More-Elastic; Less-inelastic

Luxury-Elastic; Necessity—inelatic

Time—More-elastic; less-inelastic

4. Handout: Activity 1 & 21

5. Reviewed Elasticity of Demand: Rules of thumb

a. Elastic—curve is more like an E; Inelastic—curve is more like an I

b. Closer to origin means more elastic; further from origin more inelastic.

c. Higher on Demand curve means more elastic; lower on demand curve means more inelastic

d. Formula for Demand

1. = %ΔQ/%ΔP—if Q changes more then P it is elastic & the number is > 1

2. %ΔQ/%ΔP—if Q changes less then P it is inelastic & the number is < 1

3. Total Revenue test is the easiest way to see if something is elastic or not!

6. Total Revenue Test using paper clip (inelastic) or slinky (elastic).

7. Handout: Activity 22

 

Wed. 9/10—late, late start

Elasticity of Supply, Income & Cross Elasticity; Consumer & Producer Surplus.

Agenda:

1. Did formulas for Supply, Income and Cross Elasticity--Q is always on top!!!!!!!!!!!!!!!!!!!!

2. Activity 24.

3. Elasticity worksheet (answers will be available on-line if not able to finish by end of class.)

4. (If time) Consumer & Producer Surplus

 

Thurs., 9/11

TOPIC: Exam Prep

Agenda:

1. (If not complete on Wed.) Consumer & Producer Surplus

2. Do sample Questions 96 #2 and 98 #1.

3. Reminders:

--Substitute, complement

--normal, inferior

--elasticity formulas

--show curve—high elasticity in high price, low in low price

-->1 elastic, <1 inelastic

--TR test

--Price Floors & Ceilings Review

4. Assign: Study for Exam: Test consists of: 8 demand questions; 6 supply & demand questions; 4 price floor/ceiling questions; 8 demand elasticity questions; 3 supply elasticity questions; 2 cross elasticity questions; 3 income elasticity questions; 3 consumer/producer surplus questions; 2 random questions

 

Fri., 9/12

Topic: Unit Exam

Agenda:

1. Unit Exam—40 M/C questions & 1 Graphing question

Monday, Sept. 10

• Check of homework

• Unit 1 – “3 Economic Questions/Economic Systems”

o Quiz

• HW: -

o Read handout 3-1; “Earning A Living”

 

Tuesday, Sept. 11

• ECONO GAME

• HW:

o On-line quiz for Sect. 3

 

Wednesday, Sept. 12

• Finish ECONO GAME

• Unit 2 & 4: “Free Market/Modern Economies”

o Quiz

o Discussion

• HW:

o On-line quiz for Sect. 4

o Read Article on political debate on Government involvement in U.S. Economy

 

Thursday, Sept. 13

• Central/Command Planned Economy

o Quiz

• Discussion on Government involvement in U.S. economy/2012 Presidential Election

 

Friday, Sept 14

• Test on Chap. 2

• HW -

o Read Chapter 3

o Outline Chapter

Agenda for Sept. 3 – 7, 2012

Mon., 9/3: LABOR DAY HOLIDAY—NO SCHOOL

 

Tues., 9/4-Chap. 1

Topic: Production Possibilities Curves

Agenda:

1. Turn in class expectations

2. Seating Chart

3. Activity 2-Scarcity, Opportunity Costs and PPCs. Do at least Q. 1 & 2.

2. Chap. 1—Review for test tomorrow

A. Utility, scarcity, MB vs. MC, opportunity cost, factors of production, PPCs

3. (If time) Video: Econ USA: Scarcity & Choice

4. Assignment: Study for Quiz on Chap. 1.; Take self tests for Chap. 1 Self-test at PHSchool.com (link is below) and type in Web Code: Sec 1: mna-1015, Sec. 2: mna-1016, Sec. 3: mna-1017; All of Chap. 1: mna-1011

 

Wed., 9/5-Chap. 1 Exam

Topic: Chap. 1

Agenda:

1. Take & Grade Chap. 1 Exam

2. Assignment & Discussion: 1) Record Your Expenses Handout—Due on Friday!!!

 

Thurs., 9/6

Topic: Scarcity & Choice

Agenda:

1. Econ USA Video: Scarcity & Choice 

2. Cont’d Discussion: Record Your Expenses Handout

 

Fri., 9/7-Chap. 4-1

1. Record Your Expenses Handout

2. How much money do you need to make to move out of your parents house?

3. Assignment:

Wed. 8/29-Chap. 1

Topic: Intro to Economics

Agenda:

1. Handout: Do You Think Like An Economist?—Students have 10 or 15 minutes to fill this worksheet out. They will be asked to defend their answers, so right and wrong is less important than the reasoning they use to reach their conclusion. After they are finished, they will compare answers and argue amongst themselves. All answers are false. This is a cheap trick, but it is important to realize that they don’t really know anything about econ. The good news is that, unlike Spanish, which always has a bunch of native speakers screwing up the curve for everyone, in Econ you are all equally ignorant.

2. Lecture: Course Intro.—class website on overhead— www.miracostahigh.org

3. Download from site: Econ 1-Classroom Expectations—due on Tues., Sept. 4

A. Speed & Attendance. We will be covering around 80% of the 18 chapters in this book—roughly one chapter every 6 days. If you miss a few days you will fall far behind, which is very bad in economics. Also, your book is not always perfectly clear in its explanations, so you need a teacher to help provide examples, clarify meanings and present alternate ways of looking at the issue. In essence, you will learn more—and more easily—if you are in class.

B. Frequent quizzes and testing—-very frequent. The purpose of the homework assignments is to prepare you for tests. They are rarely graded. If you don’t do them, however, you will fail the exams. If you miss an exam, the makeup exam will be different—and painful.

4. On the side whiteboard: The daily and weekly agendas will be posted. If you are absent, you will be expected to get the information you need from the class website and return to class prepared.

5. Download from site—Econ 2-Exit Passes--guard these with your life--they are like money, not like traveler's checks. If you lose them, they are gone.

6. Why would you want to be filthy rich?

7. Pick up textbooks from library: 8:30 and 10:50.

8. Extra Credit articles can be obtained at:

www.economist.com

email: [email protected]

password: deadpuppies

9. Assignment: Chap. 1, Sec. 1; Download and have Classroom Expectations signed by Wed.; Download Exit Passes by Wednesday. Ponder: Why would you want to be filthy rich?

 

Thurs. 8/30-Chap. 1

Topic: Chap 1, Sec. 1-Scarcity & Choice/Factors of Production—C.E.L.L.

Agenda:

1. Why filthy rich?

2. Opening—(I can’t get no) Satisfaction—The Rolling Stones

3. Gradebookwizard: available as soon as school uploads info.

4. Utility

a. What this course is about—Dollars or Desires? We aren’t after $$$, we are after utility. What is utility?—Your book mostly ignores this, but it is very important.

b. Handout: Supply & Demand or Who gets the gold?

5. Lecture: Scarcity & Choice—-Notes from Chap. 1

--Wants are unlimited but resources are scarce. Because of this—you must make choices!!!! The choices people make and why they make them are the heart (or twin hearts, if you prefer) of economics. Because of this—everything has a cost!!!

--Wants matter, needs do not—at least in economics.

6. PowerPoint: Powers of Economic Thinking—very important for the discussion of Marginal Benefits (Utility) and Marginal Costs.

7. Assignment: A) Read Chap. 1, Sec. 2 - 3

 

Fri., 8/31-Chap. 1-PPCs

Agenda:

1. (cont’d from yesterday) PowerPoint: Powers of Economic Thinking

2. Just like there is a budget grids/lines for individuals, there is also one for an economy—it is called a Production Possibilities Curve—PPC

3. C.E.L.L. Every good and service in the world is composed of these four components. Also, ignore the crap in your book about human and physical capital. Brain Teaser—which category does $$$ fall under?

4. PPC Powerpoint and Reffonomics website: Production Possibilities Model--Movement along and of PPC.

5. Assignment: None