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?