Wednesday, March 30, 2011

Honors Business Economics: 31 March 2011

Beyond the Sound Bites (if time after Assessment):

Clear your desk except for a pencil. Once everyone is quiet, and no talking during the Test, we can begin. Be sure to put your name on the Test.

You may write on the Test itself.

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 Test.

Be sure your name is on the Test.

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

Lorin Says Applications to Ivy League Schools at Record, 3:32

An unprecedented admissions year; Harvard College invites 6.2% of record 34,950 applicants. This is an increase of nearly 15 percent over last year, and of more than 50 percent from four years ago.

March 30 (Bloomberg) -- Bloomberg reporter Janet Lorin talks about applications and acceptance rates at U.S. Ivy League colleges and the use of school alumni to interview prospective freshmen. Harvard University, Yale University and Princeton University accepted 6.2 percent, 7.4 percent and 8.4 percent, respectively, of their freshman applicants this year as more students than ever seek Ivy League educations. Lorin speaks with Carol Massar and Matt Miller on Bloomberg Television's "Street Smart." (Source: Bloomberg)

The Chapter 9 Section 2 Quiz Make-up is today.

The Chapter 9 Section 1 Quiz Make-up is today; all Chapter 9 Quizzes and Test will be recorded for the 4th Quarter, not this Quarter.

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 10: Government Spending

10.2. Review

In-class assignment, with a partner, list the five largest federal government expenditures.

Case Study

Boeing Going Strong

Section 3: Deficits, Surpluses, and the National Debt

Deficit spending adds to the federal national debt. The national debt affects the distribution of income and transfers purchasing power from the private to the public sector. Attempts to control the deficit have taken the form of mandated deficit targets and pay-as-you-go provisions.

Content Vocabulary

deficit spending

Deficit Spending - Obama's Choice, 3:33

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

Increases in the budget increase what?
Increases in economic activity increases what?
Does consumer confidence increase economic activity?
Consumer confidence is also affected by the size of what?
Increases in the deficit results in what?
When you decrease the federal budget what happens?

national debt

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

Economics: Case Study: The U.S. National Debt (please note that this video is not that old but the debt figure was much lower), 4:34

What is the national debt?
What is the budget deficit?
GDP divided into debt, was, what percent?
How does this figure compare to other countries?
After World War II, and in the 1990s, what happened to the debt?

balanced budget

Mike Lee & Rand Paul (03.07.11), 6:35

trust funds

per capita

crowding-out effect

Crowding Out & Lags, 5:52

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

Should we use fiscal policy?
What does the answer depend upon?
Define crowding out.
What does this mean?
What is the unintended consequence?
What is driven up as a result?
What three possibilities exist?
What is one more thing to consider?
What is this called?
What type of lags are there?
How do these lags relate to the business cycle?

"pay-as-you-go" provision

line-item veto

spending cap


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

John Stossel - Government's Ponzi Scheme, 7:27

What is a bigger Ponzi scheme than Madoff?
Who will pay the entitlements when the baby boomers retire?
What does the graph show?
What can be done?
How does Obamacare add an entitlement?
Why are entitlements unsustainable?
What are Rep. Ryan's suggestions?

10.3 Strategy

In-class assignment, with a partner, list the various attempts by government to reduce the federal deficit and the national debt, then discuss the results.

From Deficits to Debt

Predicting the Deficit

Deficits Add to the Debt

A Growing Public Debt

Public vs. Private Debt

Impact of the National Debt

Transferring Purchasing Power

Reducing Economic Incentives

Crowding Out

Redistributing Income

Reducing Deficits and the Debt

Legislative Failures

Raising Revenues

Reducing Spending

10.3 Review

In-class assignment, with a partner, list five ways the national debt can affect the economy.

Profile in Economics

Alice Rivlin

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

How to Fund Health Care Reform? - Alice Rivlin, 3:17

Is raising taxes a sufficient solution to fund health care?
What suggestion does Ms. Rivlin make?

Alice M. Rivlin is a Visiting Professor at the Public Policy Institute of Georgetown University and a Senior Fellow in the Economic Studies program at the Brookings Institution. She is the Director of the Greater Washington Research Program at Brookings. Before returning to Brookings, Ms. Rivlin served as Vice Chair of the Federal Reserve Board from 1996 to 1999. She was Director of the White House Office of Management and Budget from 1994 to 1996, and Deputy Director (1993-94). She also chaired the District of Columbia Financial Management Assistance Authority (1998-2001).

Ms. Rivlin was the founding Director of the Congressional Budget Office (1975-1983). She was director of the Economic Studies Program at Brookings (1983-1987). She also served at the Department of Health, Education and Welfare as Assistant Secretary for Planning and Evaluation (1968-69).

Chapter 10 Resources

Chapter 10: Government Spending Multiple Choice Quiz

Chapter 10: Government Spending ePuzzles and Games Column

Chapter 10: Government Spending Vocabulary eFlashcards

Chapter 10: Government Spending In Motion The Federal Budget for Fiscal Year 2007

Chapter 10: Government Spending In Motion State and Local Expenditures

Chapters 8-11


Chapter 9 Resources

Chapter 9: Sources of Government Revenue
Multiple Choice Quiz


Ch. 9 Crossword Puzzle

Chapter 9 Flashcards

Chapter 10 Resources

Self-Check Quiz, Crossword, Vocabulary



Chapter 11 Resources


Chapter 11: Financial Markets

Chapter Overviews

Section 1: Savings and the Financial System

People who save their money make it easier for businesses to spend, which in turn, produces economic growth. The role of saving in a financial system is the process that makes dollars available for others to invest. Financial assets—such as savings accounts, bonds, certificates of deposit (CDs), and many other types are issued by individuals, businesses, and governments. Another important group of financial intermediaries is called non-bank financial institutions—or non-depository institutions that also channel savings to borrowers. Finance companies, life insurance companies, and pension funds are examples of non-bank financial institutions. Finally, investors need to consider the following factors before investing their money: consistency, simplicity, risk-return relationship, and investment objectives.

Section 2: Financial Assets and Their Markets

When people decide to invest their money, they have many options. Some main investments include CDs, bonds, bills, and IRAs, all of which vary in cost, maturity, and risk. Financial assets are grouped into different markets depending on their maturity and liquidity. Financial assets are grouped into four different markets: capital market, money market, primary market, and secondary market.

Section 3: Investing in Equities and Options

Purchasing stocks is another form of investment. Equities, or stocks, are shares of common stocks that represent ownership of corporations. Many stocks are traded on organized exchanges like the New York Stock Exchange, the American Stock Exchange, and the many regional exchanges around the country. Although, the great majority are traded on a computerized marketplace of organized dealers called the Over-the-Counter Market. Investors follow the Dow-Jones Industrial Average (DJIA) or the Standard & Poor's 500 (S&P 500) to track the performance of stocks. Bull markets are strong markets with prices going up; bear markets are bad markets with prices going down. Investors who are not afraid of risk can also invest in futures and options if these suit their investment needs.

Chapter 11: Financial Markets
Student Web Activity

"The New York Stock Exchange"

You have already learned that the New York Stock Exchange (NYSE) is the oldest, largest, and most prestigious of the organized stock exchanges in the United States. It is located on Wall Street in New York City and like most other organized exchanges, has certain rules for both its members and the corporations listed on the Exchange. The NYSE lists stocks from over 3,000 companies who must meet stringent requirements related to profitability and size. These requirements virtually guarantee that the companies will be among the largest, most profitable, publicly held companies. In this activity, you will learn more about the NYSE as well as your role as an investor.

Destination Title: The New York Stock Exchange

Note: Clicking on the link above will launch a new browser window.
Need help using your browser for this activity? Click here for tips.

Start at the New York Stock Exchange's Education Web site.

Scroll down and click on the pdf called A Guide to the NYSE Marketplace.
From here, you will read several chapters from a guide to the Exchange and your role as an investor. Read the articles and answer the following questions.

1. Read Chapter 1, "The NYSE: At the Heart of Global Financial Markets." Why did Wall Street brokers form the Buttonwood Agreement?

2. Continue reading Chapter 1. Describe the role of the New York Stock Exchange as a world leader.

3. Next, scroll down and read Chapter 6, "Putting Your Money to Work." What are reasons that people invest in stocks and bonds?

4. Continue reading Chapter 6. What are examples of types of investments? If you had $500, what type of investment would you select? Why?

Figure 11.1 Overview of the Financial System


Figure 11.2 The Power of Compound Interest


Figure 11.7 How Much Money Will You Have at Retirement?

Wisconsin Labor Protests - Noodles, 1:36

The Rules of Good Sportsmanship in Games, Sports and in Life, 9:30

The public domain film, Good Sportsmanship (1950). How sportsmanship enriches daily living: a lesson for teens.
Producer: Coronet Instructional Films
Creative Commons license: Public Domain

After 4th Period Friday, be prepared for "pop" Quizzes on Chapter 9 material; and, of course, consider the 3rdQuarter Assessment Prep Page.


By the Numbers, 1:39

36,000 students applied to Harvard this year; provisionally, there was a 4.5% acceptance rate.

Email (or hand in hard copy) to

Thursday HW
1. p. 275, #6-8
Friday HW
1. p. 283, #2