Current Events:
1. Will the unemployment rate be coming down any time soon (Austan Goolsbee) according to Obama's chief economic adviser?
The top White House economic adviser says the high unemployment rate will continue for some time.
There is a grim economic forecast on the horizon.
2. Who or what does the Treasury Secretary (Tim Geithner) blame?
He blames the previous Administration.
3. What does John Tamny, realclearmarkets.com, state that was not brought up by the previous commentators?
Weak dollar, money is devalued, investment is high and people are reluctant to invest (and most importantly for people who want to work--hire), regulation makes it difficult for businesses to expand, higher tax rates on individuals makes it difficult for business to have access to funds for investments, the higher the rich are taxed, who have the money to hire, the fewer jobs available, the current regime is taking on the one hand from the people who could be hiring, and then, we will return part of the money we collected from you, and if not taxed, businesses will have the capital to grow.
In short, Federal policy and national politics are hindering the economy.
Chapter 1: What Is Economics?
Web Activity Lesson Plans
The Student Web Activity is based on a class lesson that we will work on at some point as a class activity. To do this activity, students should look up and define these three terms before the Activity begins (i.e., this is Homework material):
human capital
trade-offs
opportunity cost
In addition, students can post a definition online at our Shanawiki page:
Cf. http://shanawiki.wikispaces.com/Honors+Business+Economics+Chapter+1+Section+1
You have to go to the site first and request membership; I will approve you at:
http://shanawiki.wikispaces.com/
Wikis in Plain English, 3:52
Student Web Activity
Chapter Overview
Section 1: Scarcity and the Science of Economics
Economics is a social science that deals with the fundamental economic problem of scarcity—a condition caused by the combination of seemingly unlimited wants and limited resources. Because of this, people are forced to make choices and decisions about how they will use their resources. People have needs such as food, clothing, and shelter; people have wants, which are nonessential ways of expressing needs. The notion of TINSTAAFL, which stands for There Is No Such Thing As A Free Lunch, is often used to remind us that resources are scarce and that we must make careful economic decisions regarding WHAT, HOW, and FOR WHOM to produce. Other concepts relevant to economics are the four factors of production: land, capital, labor, and entrepreneurs. And the four key elements to this study are description, analysis, explanation, and prediction.
In addition, the Hands-On Chapter Project relates the content from each section to the Big Idea. This Chapter Project is:
Participating in the Fed Challenge
The steps in each section build on each other and culminate in the Wrap-Up Activity on the Visual Summary page (p. 27).
Definition of Economics
This problem of limited resources and unlimited wants also applies to society as a whole.
Can you think of any societies in which all wants are satisfied? Most societies would prefer to have better health care, higher quality education, less poverty, a cleaner environment, etc. Unfortunately, there are not enough resources available to satisfy all of these goals.
Thus, economists argue that the fundamental economic problem is scarcity. Since there are not enough resources available to satisfy everyone’s wants, individuals and societies have to choose among available alternatives. An alternative, and equivalent, definition of economics is that economics is the study of how such choices are made.
Section 1: Scarcity and the Science of Economics, p. 5
Section Preview
Content Vocabulary
Academic Vocabulary
Eventually, these vocabulary terms can be defined and posted on Shanawiki. For practice, we will only post the three terms already mentioned for the Student Web Activity exercise.
Interactive Graphic Organizers, Chapter 1, Section 1 - Reading Strategy, p. 5 (Cf. Fill-in, p. 7).
HOW to Produce
FOR WHOM to Produce
People in the News
Teens in the Red
The Fundamental Economic Problem, p. 6
Scarcity
This is your in-class assignment for today: answer the questions listed below (you can email the answers with your HW for today).
Scarcity, 2:54
According to the video, why are goods and services scarce? What is in short supply? What three elements supply the economy?
This is an excellent illustration for your notebook.
Scarcity & Choice (Shhh, if the volume is too low), 4:36
According to the video, what is Economics? What is scarcity? Can you provide an example of a choice that is not rational nor is it in your self-interest?
Definition of Economics
TINSTAAFL (There Is No Such Thing As A Free Lunch)
Reading Check
Contrasting
What's the difference between a need and a want?
Three Basic Questions, p. 7
WHAT to Produce
HOW to Produce
FOR WHOM to Produce
Reading Check
Analyzing
Why are societies faced with the three basic questions of WHAT, HOW, and FOR WHOM?
The Factors of Production, p. 8
Graphic Organizer: Chapter 1, Section 1 - Review, The (4) Factors of Production, p. 8
Land
Capital
Labor
Entrepreneurs, p. 9
A good is said to be an economic good (also known as a scarce good) if the quantity of the good demanded exceeds the quantity supplied at a zero price. In other words, a good is an economic good if people want more of it than would be available if the good were available for free.
A good is said to be a free good if the quantity of the good supplied exceeds the quantity demanded at a zero price. In other words, a good is a free good if there is more than enough available for everyone even when the good is free. Economists argue that there are relatively few, if any, free goods.
An item is said to be an economic bad if people are willing to pay to avoid the item. Examples of economic "bads" include things like garbage, pollution, and illness.
Goods that are used to produce other goods or services are called economic resources (and are also known as inputs or factors of production). These resources are often categorized into the following groups:
1. Land,
2. Labor,
3. Capital, and
4. Entrepreneurial ability.
The category of "land" includes all natural resources. These natural resources include the land itself, as well as any minerals, oil deposits, timber, or water that exists on or below the ground. This category is sometimes described as including only the "free gifts of nature," those resources that exist independent of human action.
The labor input consists of the physical and intellectual services provided by human beings. The resource called "capital" consists of the machinery and equipment used to produce output. Note that the use of the term "capital" differs from the everyday use of this term. Stocks, bonds, and other financial assets are not capital under this definition of the term.
Entrepreneurial ability refers to the ability to organize production and bear risks.
The resource payment associated with each resource is listed in the table below:
Economic Resource Resource Payment
land rent
labor wages
capital interest
entrepreneurial ability profit
And, again here below:
Reading Check
Interpreting
What would happen if one of the factors of production was missing?
The Global Economy & You
Global Entrepreneurs Drive the Economy
The Scope of Economics
Description
Analysis, p. 10
Explanation
Prediction
Reading Check
Explaining
Why is economics considered to be a social science?
Web Activity Lesson Plans
The Student Web Activity is based on the class lesson. For example, students should look up and define these three terms before the Activity begins:
human capital
trade-offs
opportunity cost
Terms defined:
Chapter 1: What Is Economics?
Student Web Activity
"Learning About an Occupation"
Introduction
The freedom to make our own economic decisions, including our occupations, employers, and when and where we work, is one of our most cherished freedoms. Information available on the World Wide Web makes these choices increasingly easier to explore. One useful source is the Occupational Outlook Handbook from the U.S. Bureau of Labor Statistics. It has detailed information on hundreds of occupations—from "able seamen" to "zoologists"—including job descriptions, earnings, job outlooks, and educational requirements. It is never too early to think about an occupation. The Handbook may even help you to decide which courses you want to take before you graduate. One occupation you might want to consider is that of an economist. Economists have one of the higher paying jobs in the economy and it's a career worth considering.
The class will be divided into four groups and one of the questions below will eventually be your group question. Your group is expected to find a suggested answer to each of the four questions, and then your group will answer one question for the entire class.
1. Read the description under "Nature of the Work." Then, describe several aspects of the job that appeal to you.
2. If you were to decide to become an economist, what other academic disciplines would you have to study in college? Why is this so?
3. Where do economists find employment, and what salaries can economists expect to make?
4. What are the opportunity costs that you are likely to encounter if you decide to become an economist?
Textbook site:
Economics: Principles and Practices
Economics Web Links
Games & Simulations
Stock Market Game (SMG)
"Student teams are $15 each."
Mankiw Macroeconomics Presidential Game
Please note: this game requires the Shockwave version 7.0 or higher: test page for Shockwave.
There is an abundance of economics resources for Mankiw (edition 5e) as well.
The outro video is a student project on scarcity.
Tyler Gaston - Scarcity, 4:37
ECN211 Macroeconomics Video Project
'Scarcity' - words and music by Tyler S. Gaston
~Lyrics~
When theres nothing to do, nothing to say, when nothing in life is going your way thats economics, oh, scarcity
When you want that car, that will get you far, but all youve found you got an empty penny jar thats economic, oh scarcity,
Scarcity, nothing in the world for free yeah scarcity, cause money dont grow on trees yeah scarcity just look around and see
When you want that grade, and your bed to be made, but wasted all that time tryin to hit a fade thats economics, oh scarcity,
When you want that steak, and then that cake, but give the hungry kids a break thats economics, oh scarcity
Scarcity, nothing in the world for free yeah scarcity, cause money dont grow on trees yeah scarcity just look around and see
With so many wants, and much fewer needs, its up to you what kind of life youll lead thats economics, oh scarcity,
So make the choice, and make it wise, cause you may not get another try thats economics, oh scarcity
Scarcity, nothing in the world for free yeah scarcity, cause money dont grow on trees yeah scarcity just look around and see
References
Textbook site:
Economics: Principles and Practices
Economics Web Links
Games & Simulations
National Geographic MapMachine and maps to illustrate areas.
Study-to-Go: download a portable version of your textbook-related materials onto your Palm or Pocket PC, including Self-Check Quizzes.
ECONOMY WATCH
This Index page collects all of the stories that we have written about the nation’s economic and financial crisis.
Cf. http://blog.glencoe.com/blog/2010/08/25/economy-watch/
Cf. Scarcity
Energy Crisis: Resource Scarcity, Oil Wars & Climate Change, 1:25:18
Participants: George Soros; Mary Kaldor; Yahia Said; Sir Nicholas Stern. Chaired by Howard Davies
Description: This event seeks to promote their political agenda and thinking about energy security, and marks the launch of the publication Oil Wars, edited by Mary Kaldor, Terry Karl and Yahia Said.
July 4, 2007 at the London School of Economics.
(Audio only unfortunately)
HW
Answer online, email me at gmsmith@shanahan.org, or in a hard copy hand in.
1. Students should look up and define these three terms.
a. human capital
b. trade-offs
c. opportunity cost
These terms will be defined and posted as well on the Shanawiki site.
You have to go to the site first and request membership; I will approve you at:
http://shanawiki.wikispaces.com/
Wikis in Plain English
2. This is your in-class assignment for today: answer the questions listed below (you can email the answers with your HW for today).
Scarcity
According to the video, why are goods and services scarce? What is in short supply? What three elements supply the economy?
