Beyond the Sound Bites (if time after Quiz):
The Ch. 4 Sec. 2 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.
A Christian business in the left's crosshairs
Moodys Analytics Chief Economist Mark Zandi discusses the state of U.S. manufacturing, small business job growth and whether the economy can achieve 4% growth this year.
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:
URL: http://nie.philly.com
Click on the words "Access e-Inquirer" located on the gray toolbar underneath the green locker on the opening page.
Login:
Username: bshsinky@shanahan.org
Password: 10888
Ch. 6 Sec. 1 Review
In-class assignment: with a partner, identify the problems associated with rationing.
Ch. 6 Sec. 2 Reading Strategy
In-class assignment: with a partner, complete the graphic organizer by describing how a surplus and a shortage affect prices, demand, and supply.
In-class assignment, working with a partner, answer the following.
In your own words, explain the price system.
Milton Friedman, Free to Choose, Power of the Market - The Pencil (explains the price system)
In-class assignment, with a partner, answer the following.
As illustrated in the video, draw the graph.
Equilibrium price and surplus
Description of equilibrium price, consumer surplus, producer surplus and social surplus using supply and demand diagrams.
Shortage
Figure 6.2 Surpluses and Shortages
In-class assignment, with a partner, answer the following:
When does a surplus occur?
When does a shortage occur?
What does Panel A illustrate?
What does Panel B illustrate?
Cf. http://glencoe.com/sites/common_assets/socialstudies/in_motion_08/epp/EPP_p150.swf
Equilibrium Price
Reading Check
Summarizing
How do surpluses and shortages help establish the equilibrium price?
Explaining and Predicting Prices
Change in Supply
Figure 6.3 Changes in Prices
Change in Demand
Change in Supply and Demand
The Importance of Elasticity
Careers
Real Estate Agent
Real estate agents, among others such as actors (including voice actors), artists, novelists, freelance writers, and similar creative artists as talents are generally compensated on a "per job" basis, and thus are not treated as employees; as freelancers, they file a 1099 form for their taxes. They are not, strictly speaking, an employee of a company. One proposal of health care might be to demand that employers purchase health care and to be treated as regular employees of companies.
This is an expensive proposition, likewise, a 1099 provision, voted down on 2 February 2011, is a piece of "Obama’s health care overhaul, rolling back a new tax reporting requirement that’s been universally panned by business owners. . . . The provision would have required business owners to file 1099 tax documents on all cumulative purchases from a single vendor that total more than $600 in a year."
The amendment was proposed by Sen. Debbie Stabenow (D-Mich.).
“This amendment is a common-sense solution for business owners who need to be focused on creating jobs, not filling out paperwork for the IRS,” she said.
Cf. http://www.politico.com/news/stories/0211/48726.html
Prices and Competitive Markets
Reading Check
Explaining
How does the elasticity of a good affects its price?
Business Week Newsclip
What's Raining on Solar's Parade?
Solar Power: Why Economics Matters, 7:12
Ch. 6 Sec. 2 Review
In-class assignment, with a partner, complete the graphic organizer to show how a change in demand and supply affects the price of a product.
Section 3 Social Goals and Market Efficiency
Prices work as a system to allocate resources between markets. However, if prices are fixed in one market, temporary shortages and surpluses tend to become permanent. A price ceiling, such as rent control, is one form of fixed price; a price floor, such as the minimum wage, is another example. Agriculture is especially hard-hit by price changes, because demand and supply tend to be inelastic, while weather often causes the supply curve to change. Therefore, to help farmers, the federal government established the Commodity Credit Corporation (CCC), an agency in the Department of Agriculture. The CCC then used a target price, which is essentially a price floor, to help stabilize farm prices. As a result, over the years, the government has established other forms of support for agriculture in the economy.
In-class assignment, with a partner, complete the cause-and-effect chart by explaining the effects of price ceilings and price floors.
Guide to Reading
Section Preview
Content Vocabulary
price ceiling
Price Floors and Price Ceilings, 5:59
In-class assignment: with a partner, answer the following:
What happens when the government interferes with the market mechanism by artificially imposing a "better" price?
What may interfere with the market?
How does the video define price floor?
Who is the price floor meant to protect?
What is the seller protected from?
What kinds of businesses would warrant such help?
Rather than impose an artificial price on the market resulting in all manner of other problems is there any way to manage the market to get the equilibrium price up to Pf?
Define price ceiling.
Who is a price ceiling meant to protect?
Would you rather pay a higher price for gas if you knew you could get it, or, would you rather pay a lower price for gas but take the chance none would be available?
Are there ways to make a lower price of gas available instead of imposing a government price?
minimum wage
Minimum Wage, 2:30
In-class assignment, with a partner, answer the following:
Before Congress, who testifies in favor of minimum wage?
Do labor unions generally work for minimum wage?
Why do labor unions favor a minimum wage?
Which groups are often harmed by the minimum wage?
Are small businesses harmed?
price floor
target price
nonrecourse loan
deficiency payment
Academic Vocabulary
Reading Strategy
Issues in the News
Minimum Wage Rise Hurts Students
Distorting Market Outcomes
Price Ceilings
Figure 6.4 Price Ceilings
Price Floors
Figure 6.5 Price Floors
Reading Check
Analyzing
What are the negative and positive aspects of price ceilings and price floors?
Agricultural Price Supports
Loan Supports
Deficiency Payments
Figure 6.6 Deficiency Payments
Conservation "Land Banks"
Reforming Price Supports
Continued Agricultural Support
Reading Check
Summarizing
What has been the effect of agricultural price supports?
When Markets Talk
Reading Check
Examining
Can you think of any other examples of markets "talking"? Explain
In-class assignment, with a partner, use the graphic organizer to illustrate how price floors affect quantity demanded and supplied.
Did You Know?
Profiles in Economics
Margaret (Meg) Whitman, eBay
Debates in Economics
Should College Athletes Be Paid?
Should College Athletes Get Paid?" 3:14
In-class assignment, with a partner, summarize the perspectives from players, a coach, and an administrator, about whether college athletes should get paid or not.
Ch. 4 Prep
Cf. http://glencoe.mcgraw-hill.com/sites/0078747643/student_view0/unit2/chapter4/
Multiple Choice Quiz
Cf. http://glencoe.mcgraw-hill.com/sites/0078747643/student_view0/unit2/chapter5/self-check_quizzes.html
Crossword Puzzle
Cf. http://www.glencoe.com/olc_games/game_engine/content/gln_ss/epp_08/ch05/index.html
Flashcard
Cf. http://www.glencoe.com/qe/efcsec.php?qi=15424
Ch. 5 Prep
Chapter 5 Supply Multiple Choice Quiz
Cf. http://glencoe.mcgraw-hill.com/sites/0078747643/student_view0/unit2/chapter5/self-check_quizzes.html
Chapter 5 Puzzle
Cf. http://www.glencoe.com/olc_games/game_engine/content/gln_ss/epp_08/ch05/index.html
Chapter 5 Supply Flashcards
Cf. http://www.glencoe.com/qe/efcsec.php?qi=15424
Ch. 6 Prep
Chapter 6: Prices and Decision Making
Multiple Choice Quiz
Cf. http://glencoe.mcgraw-hill.com/sites/0078747643/student_view0/unit2/chapter6/self-check_quizzes.html
ePuzzle Concentration
Cf. http://www.glencoe.com/olc_games/game_engine/content/gln_ss/epp_05/chapter06/index.html
Academic, Glossary, People/Places/Events
Cf. http://www.glencoe.com/qe/efcsec.php?qi=15429
Chapter 7 Preview
Cf. http://glencoe.mcgraw-hill.com/sites/0078747643/student_view0/unit2/chapter7/
Ian Hunter- Shrunken Heads, 7:46
Email (or hand in hard copy) to gmsmith@shanahan.org.
Friday HW
1. p. 161, #1
