Tuesday, April 05, 2011

Honors Business Economics: 6 April 2011

Beyond the Sound Bites:

Behravesh Says Government Shutdown Would `Backfire'

Cf. http://www.youtube.com/watch?v=TXaiPKWeSJA

Chapter 9 Section 3 Quiz on Friday.

The Chapter 9 Section 1 and Section 2 Quiz Make-ups are 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:

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.
Username: bshsinky@shanahan.org
Password: 10888

Chapter 10: Government Spending

Section 3: Deficits, Surpluses, and the National Debt

line-item veto


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

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

Public sector: Distribution of income, 3:56

In the free market system, who gets rewarded?
What type of distribution of income results (equal or unequal)?
What are the two separate views of this result?
What measures can government take to re-distribute income?
What forms do these measures take?

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). She was active in the Clinton administration.

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

Cf. http://glencoe.mcgraw-hill.com/sites/0078747643/student_view0/unit3/

Chapter 9 Resources

Chapter 9: Sources of Government Revenue
Multiple Choice Quiz

Cf. http://glencoe.mcgraw-hill.com/sites/0078747643/student_view0/unit3/chapter9/self-check_quizzes.html

Ch. 9 Crossword Puzzle

Chapter 9 Flashcards

Chapter 10 Resources

Self-Check Quiz, Crossword, Vocabulary

Cf. http://glencoe.mcgraw-hill.com/sites/0078747643/student_view0/unit3/chapter10/


Chapter 11 Resources

Cf. http://glencoe.mcgraw-hill.com/sites/0078747643/student_view0/unit3/chapter11/chapter_overviews.html

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.

Cf. http://www.nyse.com/pdfs/nyse_bluebook.pdf

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.

p. 4

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.

p. 23

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?

Chapter 11 Section 1 Savings and the Financial System

Guide to Reading

Section Preview

Content Vocabulary



certificate of deposit

financial asset

financial system

financial intermediary

nonbank financial institution

finance company



pension fund


In-class assignment, with a partner, fill in the graphic.

11.1 Strategy
Complete the graphic organizer by describing how financial intermediaries channel money.

Reading Strategy

11.1 Review

In-class assignment, with a partner, fill in the graphic.

Use the graphic organizer to describe the nonbank financial intermediaries.

11.2 Reading Strategy

In-class assignment, with a partner, fill in the graphic.

Use the graphic organizer to identify and describe at least four financial assets.

In-class assignment, with a partner, fill in the graphic.

11.2 Review

Use the graphic organizer to identify the characteristics of financial assets.

11.3 Reading Strategy

In-class assignment, with a partner, fill in the graphic.

Use the graphic organizer to describe the different stock markets.

11.3 Review

In-class assignment, with a partner, fill in the graphic.

Use the graphic organizer to evaluate the risks and rewards of investments.

Figure 11.1 Overview of the Financial System

Cf. http://glencoe.com/sites/common_assets/socialstudies/in_motion_08/epp/EPP_p291.swf

Figure 11.2 The Power of Compound Interest

Cf. http://glencoe.com/sites/common_assets/socialstudies/in_motion_08/epp/EPP_p293.swf

Figure 11.7 How Much Money Will You Have at Retirement?

Wisconsin Labor Protests - Noodles, 1:36

Spending, 6:25

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

Be prepared for "pop" Quizzes on Chapter 9 material.

Chapter 9 Section 3 Quiz on Friday.

Email (or hand in hard copy) to gmsmith@shanahan.org.

Wednesday HW
1. p. 284, #1-2, p. 286, #1
Thursday HW
1. p. 286, #2-9
Friday HW
1. p. 286, #10