Thursday, February 17, 2011

Honors Business Economics: 18 February 2010

Beyond the Sound Bites (if time after Quiz):

The Ch. 5 Sec. 3 Quiz is today.

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.

The Ch. 5 Sec. 2 Make-up Quiz is today.

The Ch. 5 Sec. 1 Quiz Make-up is today.

Skip #16 and #35; do not answer on the Test.

The Chapter 4 Test Make-up is today.


The Ch. 4 Sec. 3 Quiz Make-up 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

Teachers Union and Wisconsin Schools


Scott Says NYSE Sale Shows U.S. Losing Competitiveness

Feb. 15 (Bloomberg) -- Hal Scott, a professor at Harvard Law School, talks about Deutsche Boerse AG's agreement to buy New York Stock Exchange parent NYSE Euronext in a $9.53 billion all-stock deal. He speaks with Scarlet Fu on Bloomberg Television's "InBusiness." (Source: Bloomberg)



Chapter 7: Market Structures

Companies in the News


Types of Market Failures

Market Failures, 3:13

What is the definition of a market failure?
What are externalities?
Recall the cell phone example from externalities.
What is the second type of market failure?
What are two examples?
What is the next type of market failure?
What is one example?
What is the fourth type of market failure?
What is one example?

Inadequate Competition

Inadequate Information

Resource Immobility

Did You Know?

Expensive Memories

Sherman Antitrust Act

Public Goods


Reading Check


What type of market failure do you think is most harmful to the economy?

Dealing With Externalities

Correcting Negative Externalities

Correcting Positive Externalities

Reading Check


If externalities are positive, why should they be corrected?

BusinessWeek Newsclip

Lord of the Rings

Ch. 7 Sec. 2 Review

In-class assignment, with a partner, use the graphic organizer to identify and describe both types of externalities.


Section 3 The Role of Government

The role of government has expanded to preserve competitive markets. This has taken the form of antitrust legislation that outlaws trusts and various forms of price discrimination. As a result, the economy has been modified so that it is now a mixture of different market structures, different forms of business organizations, and some degree of government regulation.

Content Vocabulary


price discrimination, 3:59

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

What does price discrimination mean?
Does a firm charge different prices for the same product?
Why (in an economic phrase) can they do this?
Explain the role of marginal revenue in price discrimination.
Why would a firm split their market like this?
(The practice can not be done if it lessens competition--cf. Clayton Antitrust Act)

cease and desist order

public disclosure

Academic Vocabulary

Ch. 7 Sec. 3 Reading Strategy

In-class assignment, with a partner, complete the graphic organizer by describing how governments try to avoid market failures.

Products in the News

Electric Bass Recalled

Maintain Competition

Antitrust Legislation

Government Regulation

Do Government Regulations Actually Help Big Business? - Tim Carney, 4:26

Is third-party testing expensive?
Is it more difficult for a small business to comply with regulations?
Do the large companies get exemptions from compliance with regulations?
Can large companies use in-house testers for compliance?
Altria Group is the parent company of what tobacco company?
Did the Altria Group help draft the legislation to regulate tobacco companies?
Why did Nike favor regulation in the United States?
Where are their shoes manufactured: U.S. or abroad?
Are Nike's competitors harmed by regulations?
What is the effect of regulations on smaller businesses hoping to grow and compete with big businesses?

Tim Carney, Cato Enterprise Institute's Warren T. Brookes Journalism Fellow, is the author of The BIG Ripoff: How Big Business and Big Government Steal Your Money (Wiley, 2006).

He was a 2004-2005 Phillips Foundation Journalism fellow, and before that he was a political reporter for Bob Novak and Assistant Editor at Human Events. He is a columnist for America's Future Foundation's webzine Brainwash, and is a contributing editor to Human Events.

Reading Check


Why are some government regulations beneficial for consumers?

Improve Economic Efficiency

Promote Transparency

Provide Public Goods

The Rahn Curve and the Growth-Maximizing Level of Government, 5:43

When does providing public goods increase economic performance?
What happens if government spending increases too much?
Does this reduce prosperity?
What do scholars generally conclude that economic performance is maximized? Between what percentage of GDP?
What other policies also impact growth?
Most nations in Europe and North America had large or modest (small) levels of government for most of their history?
What can we say for sure?

Reading Check


What negative things could happen in a market without disclosure?

Modified Free Enterprise

Reading Check


Why do we use the term modified to describe the American free enterprise economy?

Ch. 7 Sec. 3 Review

In-class assignment, with a partner, use the graphic organizer to identify how the federal government can maintain competition and improve economic efficiency.

Case Study Pixar and Disney


Ch. 5 Prep

Chapter 5 Supply Multiple Choice Quiz


Chapter 5 Puzzle


Chapter 5 Supply Flashcards


Ch. 6 Prep

Chapter 6: Prices and Decision Making
Multiple Choice Quiz


ePuzzle Concentration


Academic, Glossary, People/Places/Events


Chapter 7 Resources



Unit 3: Economic Institutions and Issues

Chapters 8-11


Chapter 8: Employment, Labor, and Wages

Chapter 8 - The American Labor Force


Section 1: The Labor Movement

A description is given of the growth of the labor movement from its roots in craft unions to industrial unions. Organized labor was generally unpopular until the Great Depression, but labor made great strides during the 1930s and did not lose public favor again until after the end of World War II when the Taft-Hartley Act was passed in 1947. During early development of union, the two types of unions are the craft or trade union and the industrial union, and their actions consisted of striking, picketing, and boycotting. In today’s society, the union arrangements consist of closed shop, union, shop, modified union shop, and agency shop.

Student Web Activity

"Labor Unions and the AFL-CIO"

The American Federation of Labor (AFL) began in 1886 as an organization of craft unions. Later, it added several industrial unions. The trade and industrial unions did not always agree over the future of the union movement. Consequently, eight of the AFL industrial unions formed the Committee for Industrial Organization (CIO) in 1935. In 1955, after almost twenty years of disagreement, the AFL and CIO finally settled most of their differences and joined to form the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO). In this activity you will learn more about the AFL-CIO and its role in our modern economy.

Destination Title: AFL-CIO

Start at the AFL-CIO home page.

* Click on "About Us" for information about this labor organization
* Browse through the various categories and then answer the following questions.

1. What are the goals described in the AFL-CIO's mission statement?

2. What are some of the accomplishments of the AFL-CIO?

3. Select the "Union facts" link and read through the text on the page. What reasons are given for why people join unions?

4. Next, select the link "State and Local Union Movements" from the menu on the left. Select your state from the map. List at least two labor councils active in your state.

Figure 8.5 Market Theory of Wage Determination


Interactive Graphic Organizers

Chapter 8, Section 1 - Reading Strategy


Chapter 8, Section 1 - Review


Chapter 8, Section 2 - Reading Strategy


Chapter 8, Section 2 - Review


Chapter 8, Section 3 - Reading Strategy


Chapter 8, Section 3 - Review


Chapter 8 Crossword Puzzle


Vocabulary Flashcard


Self-check Quiz


Email (or hand in hard copy) to

Friday HW
1. Think of an advertising jingle that influenced you to buy a product. Explain its effectiveness.