The World Clock

This is a repeat of an older post, but I still love this site. Check out the world clock. Click the Now button and watch the numbers fly. Do you see any trends? Any of the numbers surprise you? Check out some of the other features on the site.

100 Best Economic Blogs

Review two blogs from this list of the 100 best blogs for economics students. Make sure they are from different categories, and don't repeat one that someone else has already done. Yes I realize that this means you will have to check the previous posts to see which ones have already been reviewed. The sooner you do this one the easier it will be. Reviews need to include:
1) Content
2) Appearance
3) Ease of Navigation
4) Apparent bias

Welcome Spring Semester!

Welcome to Mr. Pye's AP Economics Class. Leave a short comment showing that you found this spot, and in your own words, tell me something that you think we will be studying this semester. Don't copy anyone else's ideas.

The Fed Chairman Game

Check out this game created by the Federal Reserve. It deals with exactly what we are studying right now, monetary policy. The game puts you in the position of the Fed Chairman, and you must manipulate interest rates in order to balance unemployment and inflation. Click on the learn more button before playing. Investigate the Fed Toolkit and the other items in the help section. After this play the game. Give me a short summary of your strategy and how it went.

Keynes vs. Hayek: The Debate Continues

Read the article and decide which famous Economist you most identify with. Then watch the two youtube videos at:
Fear the Boom and Bust: http://www.youtube.com/watch?v=d0nERTFo-Sk

and Part II of the Epic Battle at:
Fight of the Century: http://www.youtube.com/watch?v=GTQnarzmTOc

Identify at least 3 points from either Economist that you agree with. List the point and the video that it came from. Don't copy your classmates responses.

The Worlds Fastest Growing Cities

As the world population is about to break the 7 billion mark, once again we focus on the changing nature of the global population. According to the article, "The world is currently undergoing a mass urbanization -- as of 2008, and for the first time in history, a majority of the global population now lives in cities. That's just the start. According to the United Nations Population Fund, the urban-dwelling population will swell to nearly five billion by 2030. But whereas it once was the alpha world cities such as New York, London, and Shanghai that were the primary magnets for young people looking to make their fortunes, now a surprising new crop of boomtowns, from the Middle East to Mali, are seeing their populations leapfrog to the top of the list."
Check out the fastest growing cities. What surprises did you notice? What problems do you foresee for these cities? What accounts for this rapid growth?

Is America actually Underpopulated?

The most recent Republican debate focused on whether Mitt Romney's yard was mowed by illegal aliens or not. This recent editorial in the New York Sun makes the point that the U.S. is actually underpopulated and that we need more immigrants not fewer. Read the article and leave your thoughts.

Is it time to Retire the Penny?

Has the venerable $.01 piece outlived its usefulness? Check out the website for some of the arguments in favor of eliminating the penny. What do you think? Also check out this guys hilarious rant against the penny.

Is paying kids for good grades; right or wrong?

There have been several experiments by school districts at paying students for attendance, good behavior, and good grades. The most recent attempts in Washington, D.C. and New York City have shown some promising results. Money is a powerful incentive. Read the article and leave your thoughts about "money for grades."

The World Clock

This is a repeat of an older post, but I still love this site. Check out the world clock. Do you see any trends? Any of the numbers surprise you? Check out some of the other features on the site.

It's a Small World After All

Here is a great quote about the interrelatedness of the global economy, and it comes not from a famous economist but from someone you all know.

"Did you ever stop to think that you can’t leave for your job in the morning without being dependent on most of the world? You get up in the morning and go to the bathroom and reach over for the sponge, and that’s handed to you by a Pacific islander. You reach for a bar of soap, and that’s given to you at the hands of a Frenchman. And then you go into the kitchen to drink your coffee for the morning, and that’s poured into your cup by a South American. And maybe you want tea: that’s poured into your cup by a Chinese. Or maybe you’re desirous of having cocoa for breakfast, and that’s poured into your cup by a West African. And then you reach over for your toast, and that’s given to you at the hands of an English-speaking farmer, not to mention the baker. And before you finish eating breakfast in the morning, you’ve depended on more than half the world. This is the way our universe is structured, this is its interrelated quality." Martin Luther King, 1967

Your assignment this week is to find 5 items that you use in your everyday lives and determine where they are produced. Look on the bottom for the "Made in ..." stamp.
List the items and the country where they are made. Be creative. You'll be surprised at the journey that some of these common items have made to get into your hands.

100 Economics Blogs

Review two blogs from this list of the 100 best blogs for economics students. Make sure they are from different categories, and don't repeat one that someone else has already done. Yes I realize that this means you will have to check the previous posts to see which ones have already been reviewed. The sooner you do this one the easier it will be. Reviews need to include:
1) Content
2) Appearance
3) Ease of Navigation
4) Apparent bias

Place your name and class period at the bottom of your entry

Welcome Future Economists of the Class of '12

This assignment is due Wednesday, August 24,2011. Click on the Reffonomics link on the right side of this page. Click on Basic Concepts. Page through the four power point presentations in the Introduction to Economics Unit. 2004 - 2009 2nd ed, "What is Economics", "Opportunity Cost", " Resources", and "Fallacies". Click on the first "Multiple Choice Questions" link. Fill in your first and last name and take the 10 question quiz. You will then print out your results and turn them in to me on Wednesday during class.

Distilling the Wisdom of C.E.O.’s

Check out this article from the NY Times, it identifies some of the characteristics shared by CEOs of corporations. Of those traits listed which one do you think is the most important? List a few characteristics that you think should be added to the list. Of those listed, which characteristics do you feel that you possess, and which ones would you need to work on?

The Fed Chairman Game

Check out this game created by the Federal Reserve. It deals with exactly what we are studying right now, monetary policy. The game puts you in the position of the Fed Chairman, and you must manipulate interest rates in order to balance unemployment and inflation. Click on the learn more button before playing. Investigate the Fed Toolkit and the other items in the help section. After this play the game. Give me a short summary of your strategy and how it went.

Does Apple Stand a Chance?

I came across this article from 3 years ago that didn't give Apple much of a chance with their new iPhone. Read the article and answer the 4 questions at the end of it. Then tell me why you think that Apple was a success with the iPhone.

Its all about the Incentives

Read the following article about how the Swiss deal with the negative spillover costs associated with garbage. Answer the three questions at the end of the article. Be original do not copy previous posts.

Super Bowl Ads

With a captive audience of over 110 million viewers during Super Bowl XLV, businesses lined up to pay the $100,000 per second, fees for their commercials. The average 30 second commercial cost $3.1 million just for the air time. Click on the title and go to hulu.com to see all of the commercials that aired during the Super Bowl. Pick your 3 favorites, and give me the one that was most likely to cause you to buy their product.

The World Clock

This is a repeat of an older post, but I still love this site. Check out the world clock. Do you see any trends? Any of the numbers surprise you? Check out some of the other features on the site.

Is it time to Retire the Penny?

Has the venerable $.01 piece outlived its usefulness? Check out the website for some of the arguments in favor of eliminating the penny. What do you think? Also check out this guys hilarious rant against the penny.

Grinchonomics

I know that I told you that Economics was not really the "dismal science." However you may have other ideas once you read this article about the Economics of Christmas. Read the article and answer the discussion question at the end that corresponds to the number that you receive in class. Have a great week.

100 Best Economic Blogs

Review two blogs from this list of the 100 best blogs for economics students. Make sure they are from different categories, and don't repeat one that someone else has already done. Yes I realize that this means you will have to check the previous posts to see which ones have already been reviewed. The sooner you do this one the easier it will be. Reviews need to include:
1) Content
2) Appearance
3) Ease of Navigation
4) Apparent bias

Welcome and Assignment #1

This assignment is due Friday, January 7,2011. Click on the Reffonomics link on the right side of this page. Click on Basic Concepts. Page through the four power point presentations in the Introduction to Economics Unit. 2004 - 2009 2nd ed, "What is Economics", "Opportunity Cost", " Resources", and "Fallacies". Click on the first "Multiple Choice Questions" link. Fill in your first and last name and take the 10 question quiz. You will then print out your results and turn them in to me on Friday.

The Fed Chairman Game

Check out this game created by the Federal Reserve. It deals with exactly what we are studying right now, monetary policy. The game puts you in the position of the Fed Chairman, and you must manipulate interest rates in order to balance unemployment and inflation. Click on the learn more button before playing. Investigate the Fed Toolkit and the other items in the help section. After this play the game. Give me a short summary of your strategy and how it went.

A Biter's Market

This is a nice little article about kids and incentives. Government policy makers are always looking for incentives to motivate us to act in a certain way. Read the article and respond to at least two of the five questions listed at the bottom of the article.

Should You Watch Football

I thought that this was an interesting article, and I'm curious about your take on it. The National Football League generates billions in revenues each year. The league markets itself as America's pastime. Have we become immune to the violence on TV each Sunday? We have all seen players being carted off the field on stretchers. Is it time to rethink our support of this league?

Is Paying Kids for Good Grades Wrong?

There have been several experiments by school districts at paying students for attendance, good behavior, and good grades. The most recent attempts in Washington, D.C. and New York City have shown some promising results. Money is a powerful incentive. Read the article and leave your thoughts about "money for grades."

The World Clock

This is a repeat of an older post, but I still love this site. Check out the world clock. Do you see any trends? Any of the numbers surprise you? Check out some of the other features on the site.

Illegal Immigration; Not an Economic Debate

Check out this article by Jason Welker about the Economics of Illegal Immigration. It is a refreshing take on an issue that has gotten a great deal of publicity recently. What are your thoughts after reading the article? Is this different from what you have been hearing from both the Republicans and the Democrats lately?

A Course Load for the Game of Life

Greg Mankiw is a professor of Economics at Harvard University. He has written an introductory Economics textbook that is widely used in AP courses around the nation. He has served on the Presidents Council of Economic Advisors, and is a real star in our field. In a recent New York Times article, he spelled out his advice for the college bound. Read the article and leave your comments. Do any of his points hit home for you?

Is it time to Retire the Penny

Has the venerable $.01 piece outlived its usefulness? Check out the website for some of the arguments in favor of eliminating the penny. What do you think? Also check out this guys hilarious rant against the penny.

Infographics In Economics

Infographics are a great way for students to dig a bit deeper and explore an issue. They are typically a combination of graphs, maps, visuals, charts and texts that can be explored through the internet. The New York Times has produced a wealth of these resources over the past few years and this week they are showcasing their best exhibits. It is important for students of Economics to be able to read and interpret visual information, to learn about the world around them. Click on the title on check out this infographic on how Americans spend their day. Check out the chart by activity and then by groups. Anything surprise you? Is this an accurate representation of how you spend the average day? Remember to leave your comments before Friday at midnight.

Assignment #1

This assignment is due Friday, August 27, 2010. Click on the Reffonomics link on the right side of this page. Click on Basic Concepts. Page through the four power point presentations in the Introduction to Economics Unit. 2004 - 2009 2nd ed, "What is Economics", "Opportunity Cost", " Resources", and "Fallacies". Click on the first "Multiple Choice Questions" link. Fill in your first and last name and take the 10 question quiz. You will then print out your results and turn them in to me on Friday.

Welcome

Welcome Class of 2011. The wonderful world of Economics awaits you. Leave a short comment with your own definition of economics.

Fed Chairman Game

Check out this game created by the Federal Reserve. It deals with exactly what we are studying right now, monetary policy. The game puts you in the position of the Fed Chairman, and you must manipulate interest rates in order to balance unemployment and inflation. Click on the learn more button before playing. Investigate the Fed Toolkit and the other items in the help section. After this play the game. Give me a short summary of your strategy and how it went.

Should Kids be Bribed to do Well in School?

Read this recent article from Time Magazine and respond. Should kids be bribed with money to succeed in school? I know that this one is a bit hard to swallow, but if it works, why not? Should it even be considered as an option? Let me know what you think.

Fear the Boom and Bust

Since we couldn't view the Keynes Rap in school, here it is. Your assignment is to identify some of the Keynesian concepts that you have learned about. Describe these concepts in the comments section.

Aid causing more hardship for Haiti's Small Businesses

As we learned when we studied price floors and price ceilings, when the government intervenes in the free market, it often makes matters worse. Causing unforseen hardships when trying to fix a problem is known as the "Law of Unintended Consequences." Just such a thing is happening in Haiti. Now don't get me wrong, I'm not saying that we shouldn't help others in times of need, but we should also fully realize the consequences of that help. Read the article and comment. Come up with at least one other example of "unintended consequences."

Under 21? Getting a credit card just got tougher

In the past, everyone on campus was trying to give you a credit card. It looks like that is about to change. Is this a good idea or not?

Economics!

A College professor came up with this acronym for remembering the basics of Economics. Pick a letter and expand on it based on what you have learned about Economics so far.

Ten Key Principles in Economics

Everything has a cost. There is no free lunch. There is always a trade-off.

Cost is what you give up to get something. In particular, opportunity cost is cost of the tradeoff.

One More. Rational people make decisions on the basis of the cost of one more unit (of consumption, of investment, of labor hour, etc.).

iNcentives work. People respond to incentives.

Open for trade. Trade can make all parties better off.

Markets Rock! Usually, markets are the best way to allocate scarce resources between producers and consumers.

Intervention in free markets is sometimes needed. (But watch out for the law of unintended effects!)

Concentrate on productivity. A country’s standard of living depends on how productive its economy is.

Sloshing in money leads to higher prices. Inflation is caused by excessive money supply.

!! Caution: In the short run, falling prices may lead to unemployment, and rising employment may lead to inflation.

An Economic Mystery

Alright, AP students… you are economics detectives and you’ve been assigned your first case. The mystery is thus: how can decreasing demand cause prices to go up? In chapter three, we are reading about product markets, the interaction of supply and demand, and market equilibrium price and quantity. You’ve read that prices are affected by the interaction of supply and demand. Clearly, if demand for a product rises, prices should go up unless supply increases a certain amount. On the other hand, if demand falls, then prices should fall unless supply falls at the same time.
So what’s happening in the article above? The headlines seems to proclaim an economic impossibility is occurring: as demand falls, prices rise! How is this possible? Is it? Is the market for apartments in the D.C. area defying the laws of demand and supply? Read the article and see if you can solve this economic mystery!

Day Zero in Haiti

Read this interesting article about the recent earthquake in Haiti and the chance that exists for this country to remake itself. In your comments address at least two of the discussion questions at the end of the article.

Assignment #1

This assignment is due Friday, January 15, 2010. Click on the Reffonomics link on the right side of this page. Click on Basic Concepts. Page through the four power point presentations in the Introduction to Economics Unit. 2004 - 2009 2nd ed, "What is Economics", "Opportunity Cost", " Resources", and "Fallacies". Click on the first "Multiple Choice Questions" link. Fill in your first and last name and take the 10 question quiz. You will then print out your results and turn them in to me on Friday.

Welcome Spring Semester Econ Students

Welcome Class of 2010. The wonderful world of Economics is waiting for you.

The decline of music piracy holds lessons for other industries

Check out this article on the decline of music piracy. When napster first came out it was all the rage. Now there seem to be other legal alternatives to illegal file sharing of music. In your opinion are more people turning to legal means, or is illegal downloading of music still commonplace?

Fed Chairman Game

Check out this game created by the Federal Reserve. It deals with exactly what we are studying right now, monetary policy. The game puts you in the position of the Fed Chairman, and you must manipulate interest rates in order to balance unemployment and inflation. Click on the learn more button before playing. Investigate the Fed Toolkit and the other items in the help section. After this play the game. Give me a short summary of your strategy and how it went.

Who Won the Recession? McDonalds.

Check out this interesting article about how McDonald's sales actually increased during the recession. How can this be? Aren't we all about eating healthy? Didn't we all watch "Supersize Me"? Feel free to share your own McDonald's experiences. Are you a closet "Big Mac junkie"?Can you think of any other businesses that did well as consumers stopped spending?

Allocating H1N1 Vaccines

Greg Mankiw is one of the most highly respected Economists in the U.S. He is currently a professor of Introductory Economics at Harvard. Check out this discussion question that he plans to use in his classes. Feel free to go beyond his two alternatives and be creative with your ideas.

The Government Spending Multiplier

Here is an article dealing with exactly what we are studying this week, fiscal policy and the Keynesian Multiplier. Read the article and respond to the four discussion questions at the end of it.

World Clock

This is a repeat of an older post, but I still love this site. Check out the world clock. Do you see any trends? Any of the numbers surprise you? Check out some of the other features on the site.

Economics: The 180 Degree Science

Read Steve Latter's article about how studying Economics just may cause you to re-examine some long held beliefs about the world. In your comments be sure to answer two of the four discussion questions found at the end of the article. Enjoy your Labor Day Holiday. Three cheers for the American worker, the most productive being the world has ever know.

The National Debt

Follow this link to view the 30 minute film entitled "I.O.U.S.A." The filmmaker is obviously not a big fan of George W. Bush. However, with that he mind, he still does an excellent job of educating us about the size and problems of the national debt. Leave your thoughts after watching the video in the comments section of this blog. Each comment must be a minimum of fifty words, make sure to leave your name and class period at the end of the comment. What are the lasting impressions that this video left on you?

Assignment #1

Follow link to Reffonomics.com, click on Macroeconomics Textbook. Click on "Basic Concepts" in the left hand column. Read all parts of first section "What is Economics?" Take online "What is Economics" multiple choice Quiz. Print off score sheet after quiz and turn in at the beginning of class Thursday August 27.

Welcome!

Welcome Class of 2010. The wonderful world of Economics is waiting for you.

Monkey Business

For this our final blog of 2008-09, I've decided to resurrect an oldie but a goodie.
As you all know, I am no big fan of monkeys. However, this is a pretty interesting article on the research being done by a Yale economist testing the economic behavior of a group of Capuchin monkeys.
What do you think of his research?

A Sin Tax on Video Games

OK, one of you recently told me that all of my current events and news stories were negative and that I was depressing all of you every day in class. Here is a lighter side story. A sin tax is a tax on negative behavior such as taxes on cigarettes or alcohol. A Louisiana lawmaker has decided that all of this video gaming and TV watching has got to stop. It's not just Louisiana either, lawmakers in New Mexico, Texas, and Wisconsin have tried to get similar legislation passed. What are your thoughts on this? Are the youth of America spending too much time in front of their Xboxes and Wiis? Will this legislation alter their behavior?

Making Sense of the Banking Crisis

This is, perhaps, the most engaging and accessible explanation of the current "Great Recession" I have come across. In this 59-minute podcast, Ira Glass and his cohorts at Chicago Public Radio and NPR create an ultra-simplified world of just one eager dollhouse buyer, a would-be banker with $10 in his pocket, and a young man with $90 he wants to put into a savings account to explain the financial mess we find ourselves in. This recording explains why TARP is called TARP, what insolvency is all about, what the term toxic assets means, and why America's biggest banks are afraid to "mark it to market" or re-value those toxic assets.

After listening I have a better appreciation for the state of all things financial but I am left wondering, what's the best way out of this morass?

Discussion Questions

1. Can you point to an underlying cause that precipitated this crisis?

2. Does the government nationalize the banks for a time, robbing banks' shareholders of their investments but allowing banks to start over with a clean slate? Does it help the banks get back on their feet by purchasing toxic assets with taxpayer money at artificially high prices? What are the short and long term effects of these different strategies?

3. Do you think the United States has "learned its lesson"? Will people (and businesses and governments) change their behavior? Or are we doomed to repeat this process?

4. Are there safeguards the government can introduce that will keep this from happening in the future?

Buy American

It seems obvious that the idea of "buying American" is a good thing. Shouldn't we try to buy American made goods, especially during this period of recession and economic downturn? It could almost be seen as our patriotic duty to purchase American made goods. We would be saving American jobs, wouldn't we? Well what seems obvious is not always the economic truth. Read this blog post by Steve Latter. He makes some very good points about free trade, and the evils of protectionism.

Should the Government Bail Out the Auto Industry?

by Victoria Miu

America's Big Three—General Motors, Chrysler, and Ford—are in big trouble. Sales from the not-so-fuel-efficient fleet of American-made vehicles had already suffered considerably because of high gas prices even before the financial crisis began to get serious in September of 2008. Faced with undesirable terms in private credit markets, the Big Three are now turning to the government for financial assistance. The House passed a bill to rescue the Big Three car companies with $15 billion in emergency loans on Wednesday, December 10, but the Senate abandoned the plan the day after. Should the government bail out the auto industry?

Those in favor of the bill argued that the rescue plan can prevent the loss of 500,000 jobs in the auto industry. Job losses in the auto sector would most likely have spillover effects in other sectors. As auto workers lose their jobs, they would consume fewer goods and services, negatively affecting industries in retail, health care, and financial services. With unemployment already rising, supporters of the bailout argued that keeping auto workers in their jobs is much easier than creating new jobs for them.

Opponents of the bill compared the bailout to the inefficiencies generated by government subsidies and tariffs. Many companies face financial problems—why should the government save the Big Three and not the others? Poor performance is typically a good signal that a company should change how and what it produces. A partial government takeover of American auto companies will not ensure that the firms will start producing vehicles that people want to buy. A bailout, according to critics, will simply prolong the inevitable: the consolidation of the American auto industry, the large number of layoffs that come with it, and the migration of workers from autos to more profitable industries.

Discussion Questions

1. What is the role of labor unions in contributing to the financial problems facing the Big Three? In particular, how well do the wages reflect the productivity of the workers in the Big Three? Click here to read more.

2. Do you think the problems faced by the Big Three stem primarily from the recent financial crisis or from longer-term decisions about what types of vehicles to produce and how to produce them?

3. Some suggest that another reason leading to the failure of the Big Three is that American consumers prefer cars made by foreign companies, such as Toyota and Honda, to cars made by American-owned companies. How does the market of foreign-made cars affect the demand for American cars?

The Snuggie

Follow the link in the title to a USA Today article on the Snuggie. The Snuggie is the latest product to make the jump to pop culture icon. Why has this product become so popular. There are a host of other blankets-with-sleeves (a.k.a. “robes”) on the market, from the “original” Freedom Blanket to the socially conscious but awkwardly named Slanket. One upscale version, the Nuddle, even includes a pocket in front for your hands and another at the bottom for your feet (the Nuddle is so upscale that it doesn’t have sleeves, it has slats).

Niche-marketed blankets didn’t catch on last winter, when home heating costs skyrocketed with rising fuel prices.

So why now?

According to their ads, 4 million Snuggies have been sold in the past 3 months. Could the downturn in the economy have anything to do with the increase in infomercials and sales of these products?

Have you ever fallen victim to one of these must have products? Think "Shamwow", "Chia Pet", "Loud and Clear", etc.

Are Newspapers a Thing of the Past?

Precious News
by Kevin Zhang

News of Barack Obama's historic election on November 4 dramatically increased demand for newspapers on November 5. Tall, bold headlines announcing the nation's new president transformed copies of the daily paper into collector's items. Though many publishers printed thousands of extra copies in anticipation of higher demand for their post-election issue, at newsstand prices, supply simply couldn't keep up with the surge in demand. On Wednesday morning, many looking to own a piece of history found only empty news boxes and long lines in front of newsstands.

Not surprisingly, copies of major newspapers' November 5, 2008 issue began selling for as much as $200 on eBay and Craigslist.

This is a classic example of how a market responds to an increase in demand. The market equilibrium on a normal day for newspapers is at point A with price P1 and quantity Q1. As the demand curve for newspapers shifts rightward from D1 to D2 (people want more newspapers at any given price level), both equilibrium quantity and equilibrium price of newspapers increase as a result—from P1 to P2, and Q1 to Q2. On November 5, the quantity of newspapers supplied increased in part because publishers anticipated higher demand and in part because they scrambled to reprint when demand was even higher than expected. In the end, more newspapers appeared in the market, and at higher prices. The new market equilibrium for newspapers on November 5 is now at point B.

Though the consequences of the sudden shock in demand for November 5 newspapers are pretty much as expected, the reasons behind this shock are not so clear.

Though newspapers received renewed attention after the election, newspaper circulation has fallen steadily across the country for years. The ease of instant access to up-to-date information and the accessibility of free content have turned many readers to the Internet for news. The spike in demand for newspapers after the election raises interesting questions about the value of the daily newspaper in a digital world.

With the prominence of the Internet, why do you think people still wanted physical copies of newspapers with news they probably already knew? What factors do you think drove up the value of newspapers after the election? What do paper newspapers have that websites do not?