Sunday, October 04, 2009

AP Economics: 5 October 2009

Prayer

Current Events:

U.S. job losses accelerated again and the unemployment rate inched up to 9.8 percent, a 26 year high.

Today's lesson plan and HW is available on the blog: http://gmicksmithsocialstudies.blogspot.com/

Email: gmsmith@shanahan.org

The Shanawiki page (http://shanawiki.wikispaces.com/) has updated class information.

LibraryThing has bibliographic resources.

I moved the "Blog Archive" to the top right on the blog page so it should be easier to find the daily lesson, HW, and other class material.

We are addressing Chapter 2 in particular for the parts not covered in the Quiz. We will cover the non-Quiz material in Chapter 2 for a Test on Chapter 2.

The exercise is Handout 2-1.

I will cover Questions #1-7; and then, in your small groups, you can work to solve the questions before we review as a class.

We have to finish #4-7.

4) Explain why each country is better off at “b” than it was at “a.”

5) Suppose that Mexico experiences growth such that its production possibilities curve now has the endpoints of 15 on the vertical axis and 6 on the horizontal axis. Draw the new production possibilities curve for Mexico.

6) Explain what may have caused this growth.

7) Has Mexico’s absolute advantage changed as a result of growth? Has its comparative advantage changed? Explain why or why not.

We will begin "NAFTA: Are Jobs Being Sucked Out of the United States?"

Description:

The level of output in an economy can be increased through specialization. Economic specialization occurs when people produce different goods and services than they consume. It requires people to exchange goods and services.

Lesson Objectives:

Students will understand that:

The level of output in an economy can be increased through specialization. Economic specialization occurs when people produce different goods and services than they consume. It requires people to exchange goods and services, thus increasing interdependence.

Specialization and exchange occur when there is unequal distribution of productive resources and when one party can produce a product at a lower opportunity cost than another party. This latter condition, known as comparative advantage, allows nations (or individuals) to benefit from specialization and trade, even though productive resources are unevenly distributed.

NAFTA: Are Jobs Being Sucked Out of the United States?

Introduction:

NAFTA, the North American Free Trade Agreement, went into effect on January 1, 1994. The Agreement phases out most tariffs between the United States, Canada, and Mexico. Tariffs, which are taxes on imports, increase the price of foreign goods and thereby benefit domestic producers. The participants in NAFTA agreed to reduce tariffs by 50 percent immediately and to reduce them to zero over the following 15 years. Industries suffering the most because of the increased competition from foreign goods would be given extra time to adjust to the elimination of tariffs on their foreign competitors' products.

Economists are generally in agreement that free trade benefits both parties involved in the exchange. Their argument rests on the principle of comparative advantage. An individual or country may be more efficient in producing all goods. However, both parties benefit if each individual or country specializes in producing goods in which it is relatively efficient and voluntarily trades for those goods in which others produce more efficiently.

The theoretical argument for free trade is persuasive. Nevertheless, many people object to the removal of trade barriers because they believe free trade will have a negative impact on employment and income. Others contend that the net benefits of free trade are positive and that tariffs protect the inefficient to the detriment of the country as a whole.

The International Debate Education Association (IDEA) presents a debate over the pros and cons of the free trade debate. Students could be quizzed on the arguments and asked to take a stand on the issues.

The debate in the United States on NAFTA centers on potential job losses because of competition with Mexico. Specifically, individuals such as Reform Party founder Ross Perot and presidential candidate Patrick Buchanan argue that lower wages in Mexico will result in United States businesses moving to Mexico. This would mean job losses in the United States. Others counter that although wages are higher in the United States, so is worker productivity. The net result in most industries is that costs in the United States are lower than in Mexico.

The effect of NAFTA on the United States economy can be determined only by a look at the data. We must see what has happened to trade since the Agreement took effect and attempt to draw conclusions about its effects.

For the "Process," we will consider "Frontier Specialists."

Activity 1:

Pretend the year is 1840. Your family moved one year ago to a sparsely populated area west of the Mississippi River. Only one other family lives within 10 miles of your house, and it is 50 miles to the next town. Each family has 50 acres of land.

Each family has been producing all its own food and clothing for the past year. As the families have come to know each other, Mr. Sanchez notices that each family has some special skills and resources. The Jacobsons seem to have an absolute advantage in growing corn and the Sanchez family an absolute advantage in hunting meat. (A person has an absolute advantage if he or she can produce more of a product with the same amount of resources.)

In your small groups, draw a chart which represents current production.

Food Production Without Specialization: (Units)

You should have three columns: Family, Corn, and Meat; and, you should have three rows: Sanchez, Jacobson, and TOTAL.

The families meet to exchange information. Members from both families want to see if they would be better off if each family specialized in what it did best and exchanged the extra goods they produced for other items they need.

In your small group, draw a chart which represents what they found.

Food Production With Specialization: (Units)

Questions:

1. In which case does each family have an absolute advantage?

2. Would the families be better off if each family produced only one item and traded with the others? Explain?

3. What will happen if one of the families does not produce all it can?

Activity 2:

The Jacobson's have moved, and a new family, the Martins, now live near the Sanchez farm. The two families are interested in trading cloth and meat. The following is the new production schedule:

Food Production Without Specialization: (Units)

Now, you need three columns: Family, Cloth, and Meat; and, you should have three rows: Sanchez, Martin, and TOTAL.

One family has a comparative advantage here if it can produce a product at a lower opportunity cost than the other family. Comparative advantage is a primary basis for specialization and trade. To see if both families will benefit, we must see what each family would give up--the "cost" of one item in terms of the other item. The "cost" of one item in terms of the other is found by calculating the ratio between the two items. The ratio of meat to cloth for Sanchez is 2:1; for Martin 1.5:1. In other words, for the Sanchez family to produce one additional unit of meat, they must give up some cloth.

Questions:

1. Which family has the absolute advantage in producing cloth? Meat?

2. Can the Sanchez family still benefit from trading?

3. How much cloth would the Sanchez family give up to produce one additional unit of meat? The Martins?

4. Which family has a comparative advantage in meat (has to give up the least cloth)?

5. How much meat would the Sanchez family give up to produce one additional unit of cloth? The Martins?

6. Which family has the comparative advantage in cloth?

7. Should the two families specialize and trade (Cf. the summary below)?

8. Which family should produce cloth and which should produce meat? Complete the following production schedule to find your answer.

[It would benefit both families to specialize and trade. If the Sanchez family produces all meat, it can produce a total of 20 units of meat. If the Martins produce all cloth, they can produce a total of 9 units of cloth. Total production for the two families increases and they will be better off.]

Conclusion:

The debate on NAFTA, and United States foreign trade in general, usually centers on the potential negative effects of imports on the economy. It is relatively easy to identify who is harmed, because imports displace workers in industries where the comparative advantage lies elsewhere. At the same time, others benefit. Firms whose exports increase clearly benefit. Consumers get the same or higher quality products at lower costs. Are these gains costless? No; some firms lose sales and some individuals lose their jobs. Is protecting firms or industries that are likely to lose costless? No; we lose the gains from trade, and those who would have benefited because they could have increased exports never get the chance to do so.

The purpose of this lesson is to acquaint students with the concept of comparative advantage (relative efficiency) and the arguments for and against foreign trade. Understanding the theory, the debates surrounding the theory, and the relevant data will help students to think clearly about optimum public policy concerning free trade.

References

Cf. Absolute Advantage: "NAFTA: Are Jobs Being Sucked Out of the United States?"

Cf. Basic Concepts Graphs

Cf. Comparative Advantage

HW send to gmsmith@shanahan.org

Define the following terms:

Key Economic Concepts:

* Absolute Advantage
* Comparative Advantage
* Exchange
* Goods
* Interdependence
* Services
* Specialization

WH II; 5 October 2009

Prayer:

Current events:


According to Molotov Mitchell, its pro-life stance makes Ireland the most civilized nation in the West. The civilized nature will change if the Lisbon Treaty is approved on October 2nd; as you may have guessed, Ireland voted to approve the Lisbon Treaty.

Today's lesson plan and HW is available on the blog: http://gmicksmithsocialstudies.blogspot.com/

Email: gmsmith@shanahan.org

The Shanawiki page (http://shanawiki.wikispaces.com/) has updated class information.

The online version of the Textbook is available.

LibraryThing has bibliographic resources.

I moved the "Blog Archive" to the top right on the blog page so it should be easier to find the daily lesson, HW, and other class material.

Joseph II Continues Reform

In Austria, Hapsburg empress Maria Theresa ruled as an absolute monarch. Although she did not push for reforms, she is considered to be an enlightened despot by some historians because she worked to improve peasants’ way of life.

The most radical of the enlightened despots was her son and successor, Joseph II. Joseph was an eager student of the Enlightenment, and he traveled in disguise among his subjects to learn of their problems.

Joseph continued the work of Maria Theresa, who had begun to modernize Austria’s government. Despite opposition, Joseph supported religious equality for Protestants and Jews in his Catholic empire. He ended censorship by allowing a free press and attempted to bring the Catholic Church under royal control. He sold the property of many monasteries that were not involved in education or care of the sick and used the proceeds to support those that were.

Joseph even abolished serfdom. Like many of his other reforms, however, this measure was canceled after his death.

We can read the online version of the Textbook together to finish the section.

We will want to read the "War of the Austrian Succession."

Then, we will consider the "Seven Years War, 1756-1763" to read.

If you take good notes, and examine the maps, you should have no problem answering the three (3) "Geography Skills" questions on p. 314, for HW.

1. p. 314, "Geography Skills" Questions: Study the world map above--"Seven Years War, 1756-1763"--and identify the areas where conflict erupted during the Seven Years' War. On what continent did the most extensive conflicts of the war take place?

2. Using the map of Europe on page 315, identify the two European alliances and which countries belonged to each.

Hint: the answer is in the "War in Europe" section.

3. Over what geographical regions did the French and British fight in North America? Using the maps and your text, explain why the British were able to defeat the French.

Hint: this is in the "War in North America" section.

Checkpoint

Why were the philosophes interested in sharing their beliefs with European rulers?

Post detailed, specific examples on our Shanawiki page.

Lives of the Majority Change Slowly

Most Europeans were untouched by either courtly or middle-class culture. They remained what they had always been—peasants living in small rural villages. Echoes of serfdom still remained throughout Europe despite advances in Western Europe. Their culture, based on centuries-old traditions, changed slowly.

By the late 1700s, however, radical ideas about equality and social justice finally seeped into peasant villages. While some peasants eagerly sought to topple the old order, others resisted efforts to bring about change. In the 1800s, war and political upheaval, as well as changing economic conditions, would transform peasant life in Europe.

Important Composers included in this section: Bach, Handel, and Haydn, among others. Music is available on Songza.

Bach, Air on the G String (5:21)


Haydn, Deutschland Ueber Alles (3:35), and a bit of trivia about this composition. Do you know which 20th century German political group adopted this song to represent their movement and point of view? Traditional German music was transformed for political and propaganda purposes.


Checkpoint

During this time, why did change occur slowly for most Europeans?

Post a detailed answer with specifics on our Shanawiki page.

Checkpoint: Focus Question

How did ideas of the Enlightenment lead to the independence and founding of the United States of America?

Post detailed, specific examples on our Shanawiki page.

Preview:

Section 4 Colonial Empires and the American Revolution

In the sixteenth century, Portugal came to control Brazil, while Spain established an empire in the Western Hemisphere that included parts of North America and most of Latin America. Portugal and Spain held onto their Latin American colonies for over 300 years. During that time, they profited richly by exporting Latin American gold, silver, and other natural resources and farm products. Spanish and Portuguese officials and Christian missionaries played important roles in Latin American societies. In North America, British control over its colonies began to unravel over issues of taxation. Multiple crises led the Americans to declare their independence in 1776 and to fight Britain until its defeat in 1783. The Articles of Confederation that formed the United States were soon replaced with a Constitution, which created a stronger central government. The Bill of Rights added important freedoms derived from the natural rights expressed by the philosophes.

Main Ideas

The colonies of Latin America and British North America were developing in ways that differed from their European mother countries.

The American colonies revolted against Great Britain and formed a new nation.

Objectives

*Describe characteristics of Britain and the 13 English colonies in the mid-1700s.
*Outline the events that led to the American Revolution.
*Summarize the events and significance of the American Revolution.
*Analyze how the new Constitution reflected the ideas of the Enlightenment.

Key Terms

mestizo

mulatto

federal system

Additional Terms, People, and Places

George III

Stamp Act

George Washington

Thomas Jefferson

popular sovereignty

Yorktown, Virginia

Treaty of Paris

James Madison

Benjamin Franklin

federal republic

Pearson Success Net has an interesting note on a "Witness History" feature.

Paine’s Common Sense

Early in 1776, English colonists in North America eagerly read the newly published Common Sense, by Thomas Paine. This pamphlet called on them to declare their independence from Britain and echoed the themes of the Enlightenment.

“Tis repugnant to reason, to the universal order of things, to all examples from former ages, to suppose that this Continent can long remain subject to any external power.”

—Thomas Paine, Common Sense

HW: email me at gmsmith@shanahan.org.

First, go to: (Glencoe World History: Modern Times Chapter 10: Revolution and Enlightenment, 1550–1800, ePuzzles and Games, Crossword Puzzle).

This does not have to be emailed; it is an online puzzle. There is a check built right into the exercise.

Answer the correct words in:
Glencoe World History: Modern Times
Chapter 10: Revolution and Enlightenment, 1550–1800, ePuzzles and Games, Crossword Puzzle.
Just click on "Crossword Puzzle."

There are instructions and a Word List.

1. p. 314, "Geography Skills" Questions: Study the world map above and identify the areas where conflict erupted during the Seven Years' War. On what continent did the most extensive conflicts of the war take place?

2. Using the map of Europe on page 315, identify the two European alliances and which countries belonged to each.

3. Over what geographical regions did the French and British fight in North America? Using the maps and your text, explain why the British were able to defeat the French.

Wikis in Plain English

Web 2.0 Tutorial explains wikis well and is a handy reference site. If you are new to wikis, there is a Web 2.0 tutorial at Web 2.0 Tutorial (http://web2tutorial.wikispaces.com/). The educational benefits are examined and you can view examples of other teacher's wikis: Educational benefits and Teacher's wikis.

Educational benefits/classroom applications:

* Students have ownership of the knowledge. They actively seek it, and they create it.
* Students are given the responsibility to look after a publication with a global audience. It's not just their teacher reading their work.
* High-level critical thinking is developed as students critique others' contributions for accuracy.
* Increased information literacy skills are required as students check their facts for accuracy and correct errors discovered by their peers.
* Create an online text for your curriculum that you and your students can contribute to.
* Engage in collaborative projects with other classrooms and other schools.
* Create collaborative stories and books.

Since 2005 when I first started using wikis in education, I point out how students should remain anonymous online, I advise them never to post any pesonal information whatever online, and finally, for their wiki postings, I have used a simple, randomly generally student number for them.

You post using a random three-digit number. For example, a student in first period, who sits in the first seat, in the first row, is #111. A student in the 7th Period, who sits in the seventh row, in the seventh seat, is #777. Each student then can determine their unique, anonymous, randomly assigned three-digit number.

N.B.: you should never post any personal information online, there should be nothing online that really identifies your actual name, address, or any other personal information. The randomly assigned three-digit number keeps you anonymous online.

Students can safely post using wikis. The added bonus for a teacher is that I quickly get to view the most highly motivated and active students, I have many students who are quiet by nature and will not ask a question in class but they become inveterate posters out of the public eye, and I discover which students need more prodding to get them active as well. My students eventually create a monitored class notebook or textbook. It is not unusual to end a course with around a 100 pages of hard-copy student generated content.

Once you are more comfortable with the concept of wikis, you can explore some of the many services that offer free wikis to educators, including Wiki Spaces (wikispaces.com), Wikis in Education (wikisineducaton.wetpaint.com), and Pbwiki (pbwiki.com).

Wikis in Plain English