Thursday, January 06, 2011

Honors Business Economics: 6 January 2011

Current Events (after the Quiz):

Clear your desk except for a pencil. Once everyone is quiet, and no talking during the Quiz, we can begin. Be sure to put your name on the Quiz and the Scantron. You may write on both the Quiz and the Scantron.

If you finish early, you may take out non-class materials; once everyone is finished, put away the non-class materials. Then, I will collect the Scantron first, and then I will collect the Quiz.

Be sure your name is on both the Scantron and the Quiz.

If your name is not on the Quiz it will not be returned.

Homeless Man with the Golden Voice

CNBC Panel Dismisses Peter Schiff (and What WSJ Really Thinks Of Him)

The Chapter 3 Section 3 Quiz Prep Page for Thursday is available.

The Chapter 3 Test is on Friday: a prep page will be forthcoming (Test resources are located below just above the HW).

The Ch. 3 Sec. 2 Quiz Make-Up is today:


The Make-Up for the Chapter 3 Section 1 Quiz is today.

The Chapter 2 Make-Up Test is today.


The Ch. 2 Sec. 3 American Free Enterprise Make-Up Quiz is today.

Standard feature:

The electronic edition of the Philadelphia Inquirer is available. We have the Sunday edition, available on Mondays, in addition to the Tuesday through Friday editions on the other days.

Please follow the steps below:

Click on the words "Access e-Inquirer" located on the gray toolbar underneath the green locker on the opening page.
Password: 10888

Chapter 5: Supply

Section 2 The Theory of Production, p. 127

The theory of production deals with the way output changes in the short run when a single productive input is varied. This relationship is presented graphically in the form of a production function. The two most important measures of output are total product and marginal product. Three stages of production—increasing returns, diminishing returns, and negative returns—show how marginal product changes as additional variable inputs are added.

Chapter 5, Section 2 - Reading Strategy

In-class assignment (you may work with a partner for the exercise):

Directions: Listing

As you read about production, complete the graphic organizer by listing what occurs during the three stages of production.

With a partner, answer the following.

In a short paragraph explain the difference between the two firms shown in the video.
What is the relationship between costs and output in gold mining and oil through the use of power production functions?
How does the second firm make money?
How is it that both firms operate efficiently?
Define production function in your own words.
Are firms taking big risks?

Production functions in gold mining and oil production, 7:51

short run
long run
total product
marginal product
stages of production
diminishing returns

Short Run Production, Marginal and Average Product, 8:05

In-class assignment, with a partner, answer the following.

What input can vary in the short run?
How does quantity change?
How is total product effected?
On the other hand, how is marginal product effected?
How does the story provided help explain these ideas?
Why don't firms keep adding workers?
How is the marginal product curved?
How does the next story explain marginal product?

Figure 5.5 Short-Run Production, p. 128


Profiles in Economics

Kenneth I. Chenault, 4:00

In-class assignment: with a partner answer the following questions.

What company is Chenault Chairman and CEO of?
What size company (large, medium, or small) represents the best opportunity for job growth?
How much of the net new jobs are created by small businesses?
What size is a company that is considered a small business?
Who owns these companies?
What does a small business offer a consumer?
What is the key and how much does a dollar spent return when spent in a small business?
If people spent money locally how much in revenue would be generated?
What personal traits does a small business person exhibit?
How does a small business stay competitive with a bigger store?

Chapter 5, Section 2 - Review

In-class assignment (you may work with a partner):

Directions: Explaining

Complete the graphic organizer by explaining how marginal product changes in each of the three stages of production.

Section 3: Cost, Revenue, and Profit Maximization

Cost and revenue are added to the theory of production. Several important measures of cost are introduced, including fixed cost, variable cost, total cost, and marginal cost. Total revenue and marginal revenue are the most important measures of revenue. The firm reaches the break-even point when the revenue from sales is large enough to cover the total cost of production. Furthermore, the firm finds its profit-maximizing quantity of output where the marginal cost of production is exactly equal to marginal revenue from the sale of the product.

Chapter 3 Prep

Chapter 3: Business Organizations


Crossword Puzzle


Vocabulary eFlashcards


Ch. 4 Prep

Ch. 5 Prep

Chapter 5 Supply Multiple Choice Quiz


Chapter 5 Puzzle


Chapter 5 Supply Flashcards



Elasticity and Supply, 3:52 (Warning: images of alcohol consumption, language, and possible objectionable content, this is not required viewing).

Logan's Run (1976, trailer), 2:54

Logan is a man with a problem: he's a 29-year-old bounty hunter who collects the people who didn't submit to state mandated euthanasia when they hit the age of 30 -- and tomorrow is his birthday.

Email (or hand in hard copy) to

Reminder: Quiz Thursday

The Chapter 3 Section 3 Quiz Prep Page for Thursday is available.

Thursday HW

1. p. 115, #1-3.

Friday HW

1. p. 116, #1-2.