Thursday, May 12, 2011

Honors Business Economics: 12 May 2011

Beyond the Sound Bites (if time after Quiz):

The Chapter 12 Section 1 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.

May 11 (Bloomberg) -- Paul Ashworth, chief U.S. economist at Capital Economics Ltd., discusses the outlook for the U.S. budget. Ashworth speaks with Maryam Nemazee on Bloomberg Television's "The Pulse."

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


life expectancy

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

Economic Freedom and a Better Life, 3:09

What is the core of economic freedom?
How does the GDP compare for the richest and the poorest countries?
How does the picture change for life expectancy?
What is the relationship between economic freedom life expectancy?
What is the difference for the poor?
What other things come with economic freedom?

Economics professor Josh Hall explains that economic freedom leads to greater human well-being. If we look at average income, life expectancy, income of the poorest 10%, and other factors, we see that when governments let citizens make economic decisions for themselves, this leads to greater human flourishing.

Further resources:
The Economic Freedom of the World Report is available for free online:
Also, watch another talk from Prof. Hall, on Economic Freedom and Growth:

net immigration


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

What is the problem with the costs and benefits of illegal immigration?
How do the locals benefit?
What other industries benefit?
Who are the losers with immigration?
What part of the population absorbs the costs of immigration?
Does the federal government take the immigrants money?
Do the immigrants receive any of their taxes for Social Security benefits?

What Are True Costs And Benefits Of Illegal Immigration? 5:44

Who truly benefits from the work of illegal immigrants? Reporter Alison St. John brings you a story about the costs and benefits of illegal immigration.

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

12.2 Reading Strategy

In-class assignment, with a partner, complete the graphic organizer by identifying changes in the United States in the listed categories.

Issues in the News

Census Bureau Selects Sites for Census Dress Rehearsal

Population in the United States

p. 331, Figure 12.4 Center of Population, 1790-2000

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

What is the center of population?
Where did it start?
Since then, where has it gone?


As of 2010, the geographic center of the U.S. population shifted 23 miles, to 37 degrees 31 minutes north, 92 degrees 10 minutes west, in the northwest corner of Texas County, Missouri.

Counting the Population

Historical Growth

Regional Change

Consequences of Growth

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

p. 332, Urban Sprawl, What are other effects of population growth?

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

Reading Check


What have been the major population changes since the first census in 1790?

Projected Population Trends

Age and Gender

Race and Ethnicity

Population Growth

Future Population Growth

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

Reading Check


Why is the rate of population growth declining?

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

12.2 Review

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

Case Study

Falabella Flourishes

Section 3: Poverty and the Distribution of Income

People are classified as living in poverty if their incomes fall below a predetermined level, or threshold. Economists are interested in how many people are in poverty and how it is dispersed in households. There are eight reasons why incomes vary: education, wealth, tax law changes, decline of unions, more service jobs, monopoly power, discrimination, and changes in family structures. In order to assist people in poverty, the government has established numerous anti-poverty programs. Most of them are classified under welfare- income assistance, general assistance, social service programs, tax credits, enterprise zones, workfare programs, and negative income tax.

Content Vocabulary

poverty threshold

poverty guidelines

Lorenz curve

LorenzGINI.mp4, 5:17

How can you take raw data and graph a Lorenz Curve?
In your own words, explain the Lorenz Curve.
What is the blue curve and what does it show?
What do the Gini Coefficients show?


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.

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


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.

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

Email (or hand in hard copy) to

Thursday HW
1. p. 327, #7-8; 2. p. 335, #2.
Friday HW
1. p. 335, #4.