Sunday, February 06, 2011

Honors Business Economics: 7 February 2011

Beyond the Sound Bites:

UCLA professor Lee Ohanian discusses the economics of the Super Bowl.

The Ch. 4 Sec. 3 Quiz is on Wednesday.

The Ch. 4 Sec. 2 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


Equilibrium Price

Reading Check


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


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.


Prices and Competitive Markets

Reading Check


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

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

Which influence is greatest on this "green" company?
What issue was preeminent in the 70s?
What two issues are the focus of this company?
What is the number one "pocketbook" issue?
Does the skepticism (after Climategate) change their sales pitch?
Why not?
What are their ideas about global warming like? What type of thing?
Nevertheless, what argument is convincing for some people?
What is to stop concerns about solar from happening again?
What happened to oil prices after Reagan was elected?
Is the world-wide demand for oil rising or falling? (As a result of supply and demand)

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


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


What has been the effect of agricultural price supports?

When Markets Talk

Reading Check


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


Multiple Choice Quiz


Crossword Puzzle




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 Preview


Ian Hunter- Shrunken Heads, 7:46

Email (or hand in hard copy) to

Monday HW
1. p. 161, #3-6
Tuesday HW
1. p. 161, #7-8
Wednesday HW
1. p. 162, #1-2
Thursday HW
1. p. 164, #1-6 (just answer the correct letter)
Friday HW
1. p. 164, #7

Honors World History II: HW Week of 7 February 2011

Monday HW
1. p. 405, #1-2; p. 407, Picturing History.
Tuesday HW
1. p. 409, Connecting to the Past, #1-3
Wednesday HW
1. p. 409, Reading Check, Explaining, Why did states make a commitment to provide public education?
2. p. 410, Reading Check, Explaining, How did innovations in transportation change leisure activities during the Second Industrial Revolution?
3. p. 411, #8
Thursday HW
1. p. 412, #1-2, p. 413, Reading Check, Summarizing, What is the principle of ministerial responsibility?
Friday HW
1. p. 413, Analyzing Political Cartoons

Honors World History II: HW

Tuesday HW
1. p. 398, Why were early cars expensive?
2. p. 399, Geography Skills, #1-2
Wednesday HW
1. p. 401, #4-6
Thursday HW
1. p. 401, #8-9, p. 402, #1-2.
Friday HW
1. p. 404, #1.

Honors Business Economics: HW Week of 7 February 2011

Monday HW
1. p. 161, #3-6
Tuesday HW
1. p. 161, #7-8
Wednesday HW
1. p. 162, #1-2
Thursday HW
1. p. 164, #1-6 (just answer the correct letter)
Friday HW
1. p. 164, #7

Honors Business Economics: HW

Tuesday HW
1. p. 146, #1-2, 4
Wednesday HW
1. p. 146, #5; p. 147, #1-2
Thursday HW
1. p. 154, #1, 3, 4
Friday HW
1. p. 161, #1