Game Theory

We don't spend much time on Game Theory in class, however the definition is:
"Game theory studies interactive decision-making, where the outcome for each participant or "player" depends on the actions of all. If you are a player in such a game, when choosing your course of action or "strategy" you must take into account the choices of others. But in thinking about their choices, you must recognize that they are thinking about yours, and in turn trying to take into account your thinking about their thinking, and so on."


You may have heard of Nash Equilibrium (A Beautiful Mind) where the two players establish the actions that will be in both of their best interests. This is usually explained using the Prisoners Dilemma (see below)

Say Ben and Alice have both been arrested for the same crime and are being held in separate cells. They are questioned by the police and have the following options; confess or stay silent. What should each do?
If both confess they each get 1 year in prison, if both stay silent they get 3 years apiece. If one confesses and the other stays silent, the confessor gets 5 years and the other one goes free. Game theory explains what strategy each player should select to minimize their time in jail.

Click on the link below, watch the video from the British game show "Golden Balls" and answer the 3 questions in your response.
http://welkerswikinomics.com/blog/2012/04/20/golden-balls-game-theory-the-prisoners-dilemma-and-the-cold-rationality-of-human-behavior/

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.

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.

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.

Charging Students for Discipline Infractions

Now here is the other side of the coin. You read an article about paying students for good grades.

Now how about charging them for minor discipline infractions. Read the article and leave your comments.

Its 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.

Paying Kids for Good Grades: Is this the answer?

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. Click on the title of the blog entry 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. 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.