Sunday, May 15, 2011

Honors Business Economics: 16 May 2011

Beyond the Sound Bites (if time after Quiz):

The Chapter 12 Section 2 Quiz is today.

Cross out "f."

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 Chapter 12 Section 1 Quiz Make-up is today.

The Chapter 11 Test Make-up is today.

The Chapter 11 Section 3 Quiz Make-up is today.

The Chapter 11 Section 2 Quiz Make-up is today.

5 May 2011: Jobless claims hit 8-month high.

The Chapter 11 Section 1 Quiz Make-up is today.

The Chapter 10 Test Make-up is today.

Skip #31; leave it blank.

The Chapter 10 Section 3 Quiz Make-up is today.

The Chapter 10 Section 2 Quiz Make-up is today.

The Chapter 10 Section 1 Quiz Make-up is today.

The Chapter 9 Test Make-up is today.

The Quiz 9.(4) Prep Page is available.

For the Make-up Quiz, consider the material found in Chapter 9 Section 3:

minimum tax, VAT (Value-Added Tax), flat tax, federal tax reform, business taxes, profits, tax burden, personal income rate, depreciation, investment tax credit, and, capital gains.


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

Unit 4 Macroeconomics: Performance and Stabilization

Chapter 12 Macroeconomic Performance

Section 3: Poverty and the Distribution of Income


The Nature of Justice - Amartya Sen, 5:23

Should we help others, provide welfare, if we are to survive ourselves?
Does nature, and Darwin, suggest that some will not survive?
Should justice play in welfare? How?

Nobel Prize-winning economist Amartya Sen responds to several questions on justice and society. Sen offers his opinion on topics including cultural relativism, justice and democracy, and the ethics of a "survival of the fittest" approach to social justice.


Nobel Laureate Amartya Sen has been called the "Mother Teresa of economics" for his work on famine, human development theory and welfare economics. He argues that social justice is more than a matter of intellectual discourse, and that the idea of justice influences how - and how well -- people live.

Sen offers a powerful critique of the mainstream theories of justice that, despite their many specific achievements, he argues, have taken us in the wrong direction. - Commonwealth Club of California

Amartya Sen is Lamont University Professor, and Professor of Economics and Philosophy, at Harvard University and was until recently the Master of Trinity College, Cambridge. He was formerly Honorary President of OXFAM and is now its Honorary Advisor.

Amartya Sen's books have been translated into more than thirty languages. His research has ranged over a number of fields in economics, philosophy, and decision theory, including social choice theory, welfare economics, theory of measurement, development economics, public health, gender studies, moral and political philosophy, and the economics of peace and war.

Amartya Sen has received honorary doctorates from major universities in North America, Europe, Asia and Africa. He is a Fellow of the British Academy, Foreign Honorary Member of the American Academy of Arts and Sciences, and a member of the American Philosophical Society.

food stamps


Earned Income Tax Credit (EITC)

Tax Tips: Earned Income Tax Credit, 1:25

How does a taxpayer get the Earned Income Credit?
What does it depend on?
How do you qualify?

The Earned Income Tax credit can mean a bigger refund for qualified taxpayers - watch this video for all the details.

enterprise zone


negative income tax

Negative Income Tax, 3:31

What is the negative income tax?
Would this help poor people?
Would people still have an incentive to earn more?
Why is the negative income tax preferable to illegal aliens working?
Why is this beneficial to middle income earners?
Can this bridge the gap between political parties?

Based on some ideas expressed by Milton Friedman, the negative income tax is a compromise of sorts. It allows a small amount of government assistance in exchange for the elimination of the welfare state. It achieves the goals of those who advocate a safety net by effectively setting an income floor, while not sacrificing an incentive to work, invest, save, and prosper.

Issues in the News

Need for Food Help Is Growing

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

12.3 Reading Strategy

Complete the graphic organizer by outlining three explanations for a growing income gap.

Issues in the News

Need for Food Help is Growing


Defining Poverty

Distribution of Income

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

Reading Check


How were poverty thresholds developed?

Reasons for Income Inequality



Tax Law Changes

Decline of Unions

More Service Jobs

Monopoly Power


Changing Family Structure

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

Reading Check


Which factors are most important in unequal income distribution? Why?

Antipoverty Programs

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

What has happened since the 1960s?
What happened in the 1970s?
The 1980s?

Figure 12.9 Poverty in the United States: total Number and Rate


Income Assistance

General Assistance

Social Service Programs

Tax Credits

Enterprise Zones

Workfare Programs

Negative Income Tax

A Difficult Problem

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

Reading Check


What are the benefits of the EITC to a working person?

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

12.3 Review
Use the graphic organizer to identify the major programs and proposals designed to alleviate the problem of poverty.

Business Week News clip

The Get (Much) Richer

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

p. 346, What words and phrases can you identify in the article that help reveal the author's point of view?

2. Does the author state opinions or facts? What bias might be evident in these statements?

The Global Economy and You

Global Fruit

p. 351, 1. What country is the largest buyer of U.S. FRUIT?

2. What are concerns about shipping fresh fruit from other countries?

3. What fruit is available because of global trade?


Chapter 13

Economic Instability

Section 1 Business Cycles and Fluctuations

Business fluctuations and cycles interrupt economic growth. Business cycles are the regular ups and downs of real GDP. There are many factors that influence business cycles: changes in investment spending, innovation and imitation, monetary policy decisions, and external stocks. The Great Depression of the 1930s was the worst economic decline in United States history. The economy has been much more stable since World War II with a series of short, mild recessions. While seemingly unavoidable, business cycles can be anticipated with tools such as econometric models and statistical series such as the index of leading indicators.

Web Activity

business cycles

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

The business cycle described here preceded the recession.
How does the business press characterize the economy?
What happened by the March of 2000?
Are we in a new economy hereafter?
What factors do we need to consider?
What is the multiplier effect?
What elements are part of the business cycle?
How does the cycle work (when working well)?

Economics: The Future of the Business Cycle, 4:34

business fluctuations

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

Economics: Recessions, Depressions, and Booms, 3:20

What does the trend line represent?
Draw the business cycle along the trend line.
What is the bottom called?
What is it called when the cycle is on the upswing?
What do we notice after the 1940s?


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

Economics Professor on Recession, Unemployment & Consumer Spending, 3:13

What's wrong with the 2010 economy?
What are some of the near issues that affect unemployment?
What about the renewed Real Estate Tax Credit Extensions?
What are you seeing business owners doing?
Your thoughts on consumer spending?
How do we get out of recession?




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

On YouTube

The Conversation: Understanding China's Expansion, 2:03

What people are attracted to Asia?
What elements are needed for expansion?
What is China trying?

Tony Chan from Hong Kong University explains China's massive growth.

trend line


depression scrip

leading economic indicator

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

Economics: Index of Leading Economic Indicators, 4:34

What is your best source?
What is the most famous?
What is it?
What does it indicate?
How long ahead does it project?
What does it figure out?
What behaviors indicate the direction of the economy?
How many leading indicators are there?
Name a few of the indicators.

composite index of leading economic indicators

econometric model

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

13.1 Reading Strategy

Complete the graphic organizer by identifying factors that can cause changes in the business cycle.

13.1 Review

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

Use the graphic organizer to identify the causes and effects of the Great Depression.



Student Web Activity

In Motion

13.1 Business Cycles

13.2 Index of Leading Economic Indicators

13.7 Measuring Consumer Discomfort

Crossword Puzzle


Ch. 13 Multiple-choice Quiz

Chapter 11 Resources


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?

Chapters 8-11


Wisconsin Labor Protests - Noodles, 1:36

Homemaking Knowledge Contributes To The Enrichment of Life, 9:19

From the "Why Study Home Economics?" (1955); Two teenage girls learn how a knowledge of homemaking can contribute to the enrichment of life. They also learn about the vocational opportunities available to home economic students. Home economics, is an academic discipline which combines aspects of consumer science, nutrition, cooking, parenting and human development, interior decoration, textiles, family economics, housing, apparel design and resource management as well as other related subjects. Producer: Centron Corporation; Creative Commons license: Public Domain.

Slo-mo Jello 1:00

Over Population Nightmare from 1960s - Star Trek's Mark of Gideon, 2:47

Sing along to Abattabad, :54

PaperPhone, 1:39

PaperPhone is the world's first nextgen, thin film smartphone and interactive paper computer. It is based on a 3.7" flexible electrophoretic (E Ink) display that does not consume electricity when it is not refreshed. Thinfilm sensors allow the phone to respond to bending of the screen to navigate pages in ebooks, play or pause mp3s, make phone calls, or navigate apps. A flexible wacom tablet allows users to draw on the screen with a pen as if it were a sheet of paper.
For more information visit

Business Cycle Rap (Teach Me How To Dougie Parody), 4:47

Economics Theorist Project by: Or S. & Nadya P
Schumpeter - Business Cycle
"Teach Me 'Bout The Cycle"


*Anthem of former Austria-Hungary

Aye! Aye!
They ask me, Schumps (what?)
Can you teach me 'bout the cycle?
You know why?
It's what the economy goes by
All I need are his theories and some simple math.
So you, you, and you will learn 'bout this in ropo's class
First stage, off the page, its the business start-up
They gonna be all over it when they hear about that cycle right?
Invest resources like land labor capital
New ideas are important to succeed
establish a position in the market, its what they need
creating a rep(utation) among the investors and consumers
first step has high risks to end up like a loser
marked by lower profit margins
is the price paid by entrepreneurs

Teach me 'bout the cycle
T-Teach me 'bout the cycle
Never change the cycle
Never Never change the cycle
E'erbody know it, E'erbody know it (T-E-P-R)
You ain't messin' with the cycle (T-E-P-R)

The T is for trough
The E is for expansion
The P is for peak
The R is for recession
E'erbody know it, E'erbody know it (T-E-P-R)
You ain't messin' with the cycle (T-E-P-R)

The name is Schums
For thoses that don't know him
This stage has economic growth and money
A rise in consumer demand isn't funny
They've built a core of loyalty and trust
A group of consumers come back as a must.

Keep up with rising sales and further expansion
They have to increase what's essential.
Manufacturing n' production, these inputs are substantial.
Once upgraded and aided, its part of the plan
Their profit margins continue to rise, 'cause they know they can
Gaining status and approval, they establish their niche
Ads and commercials, can't keep 'em on a leash.
As a brand name in the market,
they put money in their pocket.
It's all positives here as they continue to cheer...


The third stage, they're at a certain age
When the business matures.
They've fixed every fault and filled every hole
Now they travel through the market on cruise-control

The sales reached a regular amount
Less resources employed on their account
No retirement required, they are not disabled
Stuff profit in the pocket, the margin's still stable.

Venture out, attempt product innovation
It's their call, they're in charge of navigation
Nothing's off limits, the options swirled
Cause they're happy where they are,
On top of the world


The final stage is the toughest of all
Favourable conditions are hard to stall
When economic activity is reduced by a lot
The decline in buying and selling cannot be fought
Since employment / also circles the drain
Followed by production and most domaine(s)
None of which / they'll be able to sustain.

They struggle in the market, trying to self discover
Hoping that they will quickly recover


Don't focus on the trees, look at the forest
(E'erbody know it, T-E-P-R)
Don't focus on the trees, look at the forest
(You ain't messin' with the cycle)

That's all you need to know 'bout circular flow; Peace.

Email (or hand in hard copy) to

Monday HW
1. p. 345, #2-3, 5.
Tuesday HW
1. p. 345, #6-8.
Wednesday HW
1. p. 348, #10-15 (just write the correct word)
Thursday HW
1. p. 348, #16-18.
Friday HW
1. p. 348, #19.