Beyond the Sound Bites (if time after the Quiz):
The Chapter 11 Section 2 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.
http://www.youtube.com/watch?v=ngM2NIy6rwg
Soss Says U.S. May Not Reclaim Lost Jobs Until 2017
May 4 (Bloomberg) -- Neal Soss, chief economist for Credit Suisse Holdings USA Inc., talks about the Institute for Supply Management's report that service industries in the U.S. expanded in April at the slowest pace in eight months, and the outlook for the economy and labor market. The ISM's index of non-manufacturing companies declined to 52.8 last month from 57.3 in March. Soss speaks with Tom Keene on Bloomberg Television's "Surveillance Midday." (Source: Bloomberg)
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.
Cf. http://shanawiki.wikispaces.com/Honors+Business+Economics+Chapter+9+Section+4+Quiz+Prep+Page+Spring+2011
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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.
Login:
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Unit 4 Macroeconomics: Performance and Stabilization
Chapter 12 Macroeconomic Performance
Chapter 12 - Fighting Unemployment-Inflation and Poverty, Spotlight Video, 2:19
Cf. http://glencoe.mcgraw-hill.com/sites/0078747643/student_view0/unit4/
Section Overview
Section 1: Measuring the Nation's Output and Income
Cf. http://glencoe.mcgraw-hill.com/sites/0078747643/student_view0/unit4/chapter12/student_web_activities.html
4th
underground economy
In-class assignment: with a partner, answer the following.
Economics: Off the Books: The Underground Economy, 4:36
What is the underground economy?
Is this income reported to the IRS?
What types of transactions are there?
What additional type is there?
How much do economists estimate makes up the underground economy?
What are the estimates about the taxes lost on this income?
Are there additional costs related to the underground economy?
base year
real GDP
4th
In-class assignment: with a partner, answer the following.
Real GDP, 4:34
What is real GDP?
What do they refer to?
Define GDP and work through the definition by explaining the term.
What is included in GDP and what is not?
What activities do not form a part of GDP?
What is the tricky part?
What is GNP?
Where can "American" companies operate?
How does time relate to measuring of production?
current GDP
GDP per capita
gross national product (GNP)
GDP vs. GNP, 2:37
In-class assignment, with a partner, answer the following.
What is the difference between GDP and GNP?
How are these two terms different?
What is the difference?
Can you provide two examples?
Inference: which is better for producing wealth--GDP or GNP? Why?
Beechmontcrest: GDP vs. GNP.
Ownership vs. Location
The difference between GDP and GNP comes down to two factors: ownership and location.
GDP measures economic output based on location. If economic output occurs in the United States, then it is included in the GDP.
GNP measures economic output based on ownership. If the resources that produce the economic output are owned by an American entity, they are included in the GNP.
Honda and Ford
Honda of America is the largest automotive-related manufacturer in Ohio. There are four Honda plants in the state. Because these plants are located in the U.S., their output is included in the Gross Domestic Product (GDP). However, because these plants are owned by a corporation based in Japan, the output is not be included in the Gross National Product (GNP).
Now here is an opposite example: Ford Motor Company manufactures automobiles at its plant in Hermosillo, Mexico. Ford is an American corporation, so the output from this plant is included in the GNP. Since the plant is outside the United States, though, the output of the Hermosillo facility is not added to the GDP.
GDP, NDP, and National Income
Closely related to the concept of GDP is National Domestic Product, or NDP. NDP is based on a simple realization: it takes money to make money; or more precisely, it takes capital to make money.
In this context, “capital” is simply an economists’ term for goods that are used to manufacture other goods (and services) and deliver them to market. In the world of automotive manufacturing, this would mean machinery, factories, etc. But this is only one example. Across the economy, innumerable varieties of capital are consumed (and worn out) in order to make, sell, and deliver everything from washing machines to landscaping services.
Economists assume that all this “used-up capital” will be replaced. After all, businesses need to replace the items they consume and wear out in order to stay in business. This used-up capital is referred to as “capital depreciation.” Since it merely represents what business must replace if they want to keep running, it is deducted when economists evaluate the economy’s performance. When capital depreciation is subtracted from the gross domestic product, GDP, the difference between the two is called net domestic product, or NDP:
net national product (NNP)
national income (NI)
personal income (PI)
disposable personal income (DPI)
household
unrelated individual
family
output-expenditure model
net exports of goods and services
12.1 Reading Strategy
In-class assignment, with a partner, fill in the graphic.
Complete the graphic organizer by describing how the different economic sectors contribute to the nation's economic activity.
GDP posts smallest gain in 3 years
GDP--The Measure of National Output
Measuring Current GDP
Some Things Are Excluded
Current GDP vs. Real GDP
GDP per Capita
Limitations of GDP
The Global Economy and You
A Measure of Economic Performance and Well-Being
In-class assignment, with a partner, answer the following.
p. 323, Reading Check
Explaining
What does GDP measure, and why is it important?
GDP--The Measure of National Income
Gross National Product
Net National Product
National Income
Personal Income
Disposable Personal Income
In-class assignment, with a partner, answer the question.
p. 324, Reading Check
Summarizing
What are the different measures of national income?
Economic Sectors and Circular Flows
In-class assignment, with a partner, answer the following.
Figure 12.3 Circular Flow of Economic Activity
In your own words, describe the circular flow of economic activity.
Cf. http://glencoe.com/sites/common_assets/socialstudies/in_motion_08/epp/EPP_p325.swf
Investment Sector
Government Sector
Foreign Sector
In-class assignment, with a partner, answer the question.
Contrasting
How do households and families differ?
p. 327, Reading Check
The Output-Expenditure Model
p. 326, Reading Check
Describing
How does the foreign sector fit into the output-expenditure model?
12.1 Review
In-class assignment, with a partner, fill in the graphic.
Use the graphic organizer to compare GDP and GNP.
John Kenneth Galbraith
p. 328, #1, Which viewpoint made Galbraith an iconoclast to other economists?
2. How might living through the Great Depression lead to liberal economic thought?
Section 2: Population and Economic Growth
The population census, an official count of all people living in the United States, must be conducted every 10 years. The annual rate of population growth was more than three percent until the Civil War, but it has declined steadily since then and is now less than one percent annually. Factors contributing to this trend are a replacement level fertility rate, a longer life expectancy, and constant net immigration. The racial and ethnic mix will also change with gains made by Asians, Hispanics, and African Americans. Changes are gradual and can usually be predicted.
census
urban population
rural population
center of population
infrastructure
baby boom
population pyramid
dependency ratio
demographers
fertility rate
life expectancy
net immigration
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.
12.2 Review
In-class assignment, with a partner, answer the question.
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.
Figure 12.4 Center of Population, 1790-2000
Cf. http://glencoe.com/sites/common_assets/socialstudies/in_motion_08/epp/EPP_p331.swf
Figure 12.9 Poverty in the United States: total Number and Rate
Cf. http://glencoe.com/sites/common_assets/socialstudies/in_motion_08/epp/EPP_p342.swf
Chapter 11 Resources
Cf. http://glencoe.mcgraw-hill.com/sites/0078747643/student_view0/unit3/chapter11/chapter_overviews.html
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?
Chapters 8-11
Cf. http://glencoe.mcgraw-hill.com/sites/0078747643/student_view0/unit3/
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.
4th
SuperMariObama, :59
7th, Slo-mo Jello
Email (or hand in hard copy) to gmsmith@shanahan.org.
Thursday HW
1. p. 303, #6-8.
Friday HW
1. p. 303, #9.
