Mon. 1/16-MLK Day-No School

 

Tues., 1/17

Topic: Chap. 16, Sec. 2—Federal Reserve Functions; mna-6166 self-quiz

Agenda:

1. Handout: Final Exam Review Sheet—downloadable version below

2. Handout: Federal Reserve

3. USA Video: The Federal Reserve

4. Serving Government

A. Fed is the gov’t banker. Processes payments for social security, welfare, IRS refunds, etc.

B. Gov’t Securities Auctions—Financial agent for the Treasury Dept. Sells, Transfers and redeems gov’t bonds,

bills, notes & securities and makes interest payments. Keeps the deposits from the sale of gov’t debt.

C. Issuing Currency—issues all paper currency--Replaces worn out bills. Doesn’t actually print money.

4. Serving Banks

A. Check Clearing—records who pays and who receives funds.

B. Supervising Lending Practices—monitors bank reserves, checks the books of banks, approves or disapproves all bank mergers and charters, enforces Truth-in-lending laws to protect consumers.

C. Lender of Last Resort—

1. Banks usually lend to each other—Federal Funds Rate. If that is not good enough (like during a

recession), banks can go to

5. The Federal Reserve for loans—called the Discount Rate.

6. Regulating the Banking System

A. Reserves—Fed monitors the fractional reserves (the money that is not lent out by banks). The Fed uses these reserves to control the amount of $ in circulation.

B. Bank Examinations—Fed audits banks to make sure they are obeying the law and not making too many risky loans. They can force banks to write off loans, sell them off, whatever they choose.

7. 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.

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

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

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

10. (If time) USA Video: The Banking System

11. Assign: Chap. 16, Sec. 3

 

Wed. 1/18

Topic: Sec. 3—Monetary Policy Tools; mna-6167 self-quiz;

Agenda:

1. Simulation on money, banking and the Federal Reserve

Covers: Money Creation (by banks and the Fed. Reserve), Money Multiplier, Reserve Requirements, Federal Funds & Discount Rate, and Open Market Operations, Loanable Funds Theory, Money & Interest Rates.

2. Handout: Federal Reserve II

 

Thurs. 1/19

Agenda: Chap. 16. Sec. 4—Monetary Policy and Macroeconomic Stabilization; mna-6168 self-quiz;

1. Answers to Federal Reserve II handout.

2. Quick Review:

3. 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).

3. 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).

4. 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.

5. 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.

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

7. (If time): Int’l Trade

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

 

Fri., 1/20

Topic: Int’l Trade-Chap. 17

Agenda:

1. Power Point: Comparative Advantage

2. Trade Barriers

3. Currency Exchange

Mon. 1/9

Topic: Chap. 15, Sec. 1-Understanding Fiscal Policy: Self Quiz PHSchool.com mna-6155;

Agenda:

1. Fiscal Policy as a Tool—the gov’t can use its budget to expand or contract the economy—that is what fiscal means

  A. Goals include economic growth, full employment and price stability---these can be achieved through

spending, saving, taxing and borrowing.

2. The Federal Budget—a plan for gov’t spending. Fiscal Year—Oct. 1 – Sept. 30

  A. Here is the path of federal spending:

Federal agencies propose their budget---to Office of Management & Budget (OMB)—to President—to Congress (House & Senate Committees send their work to the Appropriations Committee) & Congressional Budget Office (CBP) to create appropriation bills—to President for his signature.

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

4. 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

5. Contractionary Fiscal Policies

  A. Decrease Spending

  B. Increase Taxes

6. 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.

Tues., 1/10

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.

3. Red Book: Activity 30 & 31

4. Supply Side Economics

  A. The Laffer Curve—if you cut taxes, the greater production will lead to more tax revenues

  B. Taxes & Output—people do respond, but not a lot (and probably not that quickly)

5. Fiscal Policy in American History  A. WWII—spent our way out of the Depression

  B. The Kennedy Administration—tax cut and war spending boosted economy & cut unemployment

  C. Supply Side Policies in 1980—not really supply-side—tax cuts and spending boosted demand—also increased budget deficits

Wed., 1/11

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. Assign: Chap. 16, Sec. 1

 

Thurs. 1/12

Topic: Chap. 16 Sec. 1-The Federal Reserve System: Self Quiz PHSchool.com mna-6165;

1. The Federal Reserve System—a privately owned, publicly controlled central bank.

Mon., 1/2—No School

 

Tues., 1/3

Topic: Chap. 14, Sec. 1-What are Taxe?

Agenda:

1. Funding Gov’t Programs.

2. Taxes & the Constitution:

A. Congress has power to tax.

B. Limitations on taxing power:

3. Tax Bases & Tax Structures

A. Tax Bases

B. Proportional, Progressive & Regressive Taxes—example on the board for comparison

4. Characteristics of a “Good” Tax

1. Simplicity

2. Efficiency

3. Certainty

4. Equity

a. Benefits Received Principle

b. Ability to Pay Principle

5. Who Bears the Tax Burden

A. Deadweight Loss—on board

6. (If Time): Filling out a W-4 form for income tax withholding.

7. Assign: Read Chap. 14-1 and 14-2. Go to PHSchool.com and do the self-quizzes for both sections. The codes are:

Sec. 1: mna-6145

Sec. 2: mna-6146

You must print out the completed quizzes and bring to class tomorrow for credit.

 

Wed., 1/4

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

Agenda:

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

2. Warm-up exercise: 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.)

3. 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

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

5. Assign: Read Chap. 14, Sec. 3; self quiz code: mna-6147

 

Thurs., 1/5

Topic: Chap. 14, Sec. 2-Federal Taxes & and Sec. 3-Federal Spending

Agenda:

1. 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

2. Corporate Income Taxes

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

unemployed.

4. Other Types of Taxes—G.E.E.T.

A. Gift Taxes

B. Excise

C. Estate

D. Tariffs

E. “Sin” Taxes

5. Sec. 3—Federal Spending

A. Mandatory & Discretionary Spending

B. Entitlement Programs

6. Assign: Chap. 14, Sec. 4; self-quiz code: mna-6148

 

Fri.., 1/6

Topic: Chap. 14, Sec. 3-Federal Spending & Sec. 4—State & Local Taxes

Agenda:

1. Mandatory & Discretionary Spending

2. 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

3. Discretionary Spending

4. Federal Aid to State and Local Gov’ts

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

5. Federal Budget—on Smart Board

6. Sec. 4-State & Local Gov’t—California State Spending 2010 on Smart Board. The rest of the info for this section is self-study. Go for it!

7. Assign: Chap. 15, Sec. 1; self-study quiz code: mna-6155

Mon., 12/12
Topic: Chap. 13, Sec. 1-Unemployment
Agenda:
1. Unemployment
  A. Frictional
  B. Seasonal
  C. Structural
  D. Cyclical
2. Activity 13
3. 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.
4. Full Employment
5. Underemployment
6. Discouraged Workers
7. Activity 14
8. Assign: Chap. 13-2

Self-Test Sections at PHSchool.com for Exam on Friday:

I know that the code for 13-2 and 13-3 are the same, but that is what the incompetents at Prentice-Hall have given me, and I have been unable to find another code that will work.  Bummer.

Tues., 12/13
Topic: Chap. 13-2: Inflation:
Agenda:
1. The Effects of Rising Prices
2. 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
4. Causes of Inflation
  A. Quantity Theory:
  B. Demand-Pull Theory:
  C. Cost-Push Theory
    1. Wage-Price Spiral
5. Effects of Inflation
  A. Purchasing Power
  B. Incomes
  C. Nominal Interest Rates & Inflation
6. Recent Trends—low inflation since the late 70s
7. Activity 12—Who is hurt and who is helped by inflation?
8. Assign: Chap. 13-3

 

Wed., 12/14
Topic: Chap. 13-3: Poverty
Agenda:
1. 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

  C. Racial & Gender Discrimination
  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.
5. Quick Project: How would you lower the poverty rate?

 

Thurs., 12/15
Topic: Chap. 12 & 13 Review
Agenda:
1. Review and Recap
--15 GDP Questions
--14 AD/AS Curves/Shifts Questions
--9 Inflation Questions
--7 Unemployment Questions
--4 Poverty/Inequality Questions

Fri., 12/16
Topic: Chap. 12 & 13 Exam
Agenda:
1. Chap. 12 & 13 Exam

Mon., 12/5

Topic: Economic Growth: Chap. 12-3

Agenda:

1. Wrap-up discussion of two-day simulation

A. Overall impressions

B. Lessons Learns

C. Changes for next sim

2. Chap. 12-3 Overview

3. Real GDP & Pop. Growth

A. GDP & Quality of Life

4. Sources of GDP Growth

A. Capital Deepening

1. Human Capital

2. Physical Capital

B. Savings & Investment

1. Savings = Investment—more savings = more investment = more capital = more growth

2. US borrows instead of savings

C. Population, Gov’t and Trade

1. High Population Growth

2. Government

3. Foreign Trade

5. Assign: Chap. 12-1

 

Tues., 12/6

Topic: GDP, GNP and Other Economic Measurements, Chap. 12-1

Agenda: (Cont’d from Mon.)

A. Technological Progress

-- Changes in technology-- Causes of Technological Change

1. Scientific Research

2. Innovation

3. Scale of Market

4. Education & Experience

5. Natural Resources

1. National Income and Product Accounts (NIPA)

2. Gross Domestic Product—

A. $ Value

B. Final Goods & Services

C. Intermediate Goods and Services

D. Produced within a country

3. Expenditure approach for Calculating GDP

--Consumer goods & svcs + business goods + gov’t goods (for biz and gov—includes investments) + net imports – exports

--Consumer goods

Durable goods

Nondurable goods

GDP—what counts?

GDP-what doesn’t count?

4. Activity 9

 

Wed., 12/7

Topic:

Agenda:

1. Finish Activity 9 from Tues.

2. Incomes Approach for calculating GDP—adds up everyone’s income

3. Nominal vs. Real GDP

4. Limitations of GDP

5. Other Income and Output measures

a. GNP = GDP + Foreign earnings by US firms – US earnings by foreign firms

b. Other Measurements—p. 306

6. Influences on GDP—Aggregate Supply & Demand

7. 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)

iii. Foreign Purchase Effect—price rises, fewer exports, more imports, hurts GDP

iv. 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

8. Aggregate Supply—pretty much like old Supply curve—it is a price/quantity relationship

9. Introduce the Supply Curve showing the “three-sided” curve—short run is elastic, medium run short of inelastic and long run perfectly inelastic

10. The Business Cycle--Phases

A. Peak

B. Recession

C. Trough

D. Expansion

E. Stagflation

11, 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.

12. 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

13. 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.

14. Chap. 12-2

 

Thurs., 12/8

Topic: Chap. 12-2 Business Cycle & AS/AD Movement

Agenda:

1. Activity 16—front page

2. Activity 17—front page

3. Video: Economic Growth/Booms & Busts

 

Fri., 12/9

Topic: Aggregate Supply Curve Shape and Movement-Chap. 12-2

Agenda:

1. What causes AD to Shift?

A. Consumer Spending/Confidence

B. Business Investment/Confidence

C. Gov’t Spending

D. Net Export Spending

E. Demand-pull inflation:

2. Activity 16—second page

3. Increases/Decreases in AS:

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

ii) Productivity

iii) Technology

iv) Gov’t taxes, subsidies & regulations

v) Cost-push inflation:

8. Activity 17—second page

9. Activity 18 for AS and AD equilibrium

10. External/Exogenous Demand & Supply Shocks—Activity 20

11. Chap. 13-1

Mon., 11/14

Topic: Buying Faux Stocks in Stock Market Game

Agenda:

1. Buying stocks in library/computer lab for stock market game.

2. Prepare for Chap. 11 exam on Tues.

3. Sample quizzes are at PHSchool.com

For 11.1: code is mnc-4115

For 11.2: code is mna-4116

For 11.3: code is mna-4117

 

Tues., 11/29

Topic: Review for Chap. 11 Exam

Agenda:

1. Exam review and questions

 

Wed., 11/30

Topic: Chap. 11 Exam

Agenda:

1. Chap. 11 Exam

Mon., 11/14

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 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 use 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.

6. Assign: Chap. 11, Sec. 1; PHSchool.com mnc-4111.

 

Mon., 11/7

Topic: Minimum Wage Debate

Agenda:

1. The debate format is as follows:

Affirmative will open with a max 12’ presentation on Whether the California Minimum Wage should be raised.

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 tonight to write up their results and render their opinions.

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

 

Tues., 11/8

Topic: Money

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., 11/9

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., 11/10

Topic: Test on Chap. 10

Agenda:

1. Test on Chap. 10.

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

 

Fri., 11/11—Veteran’s Day—No School

Mon., 10/24

Topic: Business Organizations

Agenda:

1. Form the four groups you were assigned on Fri.

2. You are preparing to open a restaurant. You will be going before a bank or group of investors to ask for the funds needed to open this restaurant. You will use the business organization you read about—single proprietorship, partnership, corporation or “other” (the other will be a franchise). You must immediately make the following decisions:

A. What is the name of your business?

B. What kind of restaurant are you going to open?

C. What “level” business are you opening? High-end? Casual? Fast food?

3. You must then start calculating the costs to open your business:

A. Licensing

B. Finding a space and redecorating it

C. Machines/materials/inventory

4. You must also calculate the costs of continuing to operate your business once it is open:

A. Labor

B. Rent

C. Materials

D. Taxes

E. Benefits (health care, vacation, etc.)

5. You must also calculate how much in revenues your business will bring in:

A. What is the average cost of eating at your restaurant (entrée, appetizer, drinks, etc.)?

B. How many meals can you produce during a day/week/month?

6. You must then take these facts and figures and present them to a board of investors. You are free to use any presentation method you like. Whatever you think will be the most impressive/interesting method (powerpoint, puppet show, video, website, facebook page) is the one you should use.

7. MOST IMPORTANTLY: You must look at the strengths and weaknesses of your type of business organization and decide how you can capitalize on your strengths and minimize your weaknesses.

 

Mon., 9/26

TOPIC: UNIT 2 – Chap. 6--Elasticity of Supply, Income & Cross Elasticity; Consumer & Producer Surplus.

1. 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!

2. Did Activity 23

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

4. Did sample questions from Activity 24.

5. Run over Consumer & Producer Surplus

6. Assign:

 

Tues., 9/27

TOPIC: Elasticity, Price Floors & Ceilings Review;

Agenda:

1. Handout: Elasticity worksheet—work in pairs

2. Run over Elasticity worksheet

 

Wed. 9/28

TOPIC: Unit Review

Agenda:

Topic: Unit Exam Review

Agenda:

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

2. Reminders:

--Substitute, complement

--normal, inferior

--elasticity formulas

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

-->1 elastic, <1 inelastic

--TR test

--All the stuff from yesterday—

--Price Floors & Ceilings

3. Assign: Study for Exam--Download Study Guide for Review

 

Thurs. 9/29 & 30—No Class

Mon. 9/12

Topic: Changes in Quantity Demanded—Chap. 4-1

Agenda:

1. Law of Demand

1. Diminishing MU

2. Income effect

3. Substitution effect

2. Dim MU Demonstration

3. Demand Schedule & Curve, individual vs. market demand from Charts—All Chapters Powerpoint—including—MB vs. MC section.

4. Assignment: Read Chap. 4-2

 

Tues. 9/13

Topic: Changes in Demand-Chap. 4-2

Agenda:

1. Supply & Demand Powerpoint--8 determinants of demand.

Mnemonic Device for Determinants of Demand:

T.astes;

Prices of R.elated Goods (substitutes & complements)

I.ncome

Number of B.uyers

E.xpectations

T.R.I.B.E

2. Start Activity #13--finished

3. Start Activity #14

4. Assignment: Read Chap. 5.1 & 5.3

 

Wed. 9/14

Topic: Changes in Quantity Supplied and Changes in Supply—Chap. 5-1 & 5-3

Agenda:

1. Activity 14(if not finished yesterday)

2. Ceteris paribus, profit and no barriers to entry

3. Supply—6 determinants —on whiteboard w/ examples of each.

Mnemonic device for determinants of supply:

R.esource Costs

O.ther Prices (substitutes & complements)

T.axes & subsidies

T.echnology

E.xpectations

N.umber of Suppliers

R.O.T.T.E.N.

4. Start Activity 16.

5. Assign: Chap. 6-1 & 6-2

 

Thurs. 9/15

Topic:

Agenda:

1. Act. 16

2. Intro--Market Equilibrium--Examples on Board (Powerpoint?).

3. Video: EconUSA: Markets & Prices

 

Fri. 9/16

Topic:

Agenda:

1. On whiteboard—make students answer sample questions (C-3—MC&B Qs 3, 6, 8, 9, 14)

2. Discussion/Examination of price floors/ceilings

3. Activity 25

4. Assignment: TBA

Mon. 9/5—Labor Day-No Class

 

Tues.., 9/6-Chap. 1

Topic: Production Possibilities Curves

Agenda:

1. Seating Chart

2. 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. Video: Econ USA: Scarcity & Choice

4. Assignment: Study for Quiz on Chap. 1.; Take the Chap. 1 Self-test at PHSchool.com and type in Web Code: mna-1011

 

Wed.., 9/7-Chap. 1 Exam

Topic: Chap. 1

Agenda:

1. Take & Grade Chap. 1 Exam

2. Assignment: 1) Read all of Chap. 2

 

Thurs., 9/8— Chap. 2-4 Fundamental Questions; Market, Command & Mixed Economies

Topic: Complete Chap. 2

1. Powerpoint: 4 Fundamental Questions

2. Free Markets

A. Markets are where buyers buy and sellers sell--they meet to exchange goods (think auction or ebay)

B. Self-interest guides all—profit for producers, low prices for consumers

C. Competition—the struggle among producers for customers—regulates the market

D. Adam Smith and the Invisible Hand—producers and consumers both get what they want without an overall force telling them what to produce or buy.

E. Laissez-faire==no gov’t involvement in any economic area

3. Centrally Planned Economies

A. Government runs everything.

B. Socialism vs. communism—socialists believe in democracy and central planning to achieve economic equality; communists believe in violent revolution and strict controls by gov’t.

C. Central Planning sucks—consumers don’t get what they want, there is no incentive to innovate or work hard; you have little economic freedom

4. Mixed Economies

A. Gov’t must do some things—public goods, protect property rights, enforce contracts & provide a safety net—help limit inequality and help out those who need it

B. Most economies now mixed—some are more centralized and some are more free—compare Venezuela to U.S. or Egypt to South Korea.

4. Assign: Study for Quiz on Chap. 2 tomorrow; Take the Chap. 2 Self-test--go to PHSchool.com and type in Web Code: mna-1021

 

Fri., 9/9-Short Quiz on Chap. 2 & Current Events

1. Chap. 2 Quiz

2. What happened in the economic world this week?

3. Assign: Read all of Chap. 3