Chapter 4 Market Efficiency, Market Failure, and Government Intervention
Take reliable notes on the PowerPoint presentation for Ch. 4.
Chapter Outline
Chapter 4 Market Efficiency, Market Failure, and Government Intervention
Markets are efficient mechanisms for allocating resources. However, in the real world, markets can “fail” as a result of departures from the idealized competitive market structure. This chapter assesses the efficiency of markets in terms of maximizing consumer and producer surplus, and explains the circumstances under which market failures can occur. Government intervention in markets in the forms of price floors, price ceilings, and taxes is also examined.
Efficient Market Requirements
Accurate Information Is Widely Available
Property Rights Are Protected
Contract Obligations Are Enforced
There Are No External Costs or Benefits
Competitive Markets Prevail
The Discipline of Markets
Consumer and Producer Surplus: A Tool for Measuring Economics Efficiency
Checkpoint: Markets and Efficiency
Market Failures
Accurate Information Is Not Widely Available: Asymmetric Information
Adverse Selection
Moral Hazard
Information Markets: The Wisdom of Crowds
Problems with Property Rights
Public Goods
Common Property Resources
Contract Enforcement Is Problematical
There Are Significant External Costs or Benefits: Externalities
Competitive Markets Do Not Prevail: Monopoly Power
Checkpoint: Market Failures
Review
Government-Controlled Prices
Price Ceilings
Price Floors
Taxes and Deadweight Loss
Checkpoint: Government-Controlled Prices
Review
Who Is Watching Your Money? Bank Regulation and Information Problems
Chapter Summary
Markets and Sufficiency
Market Failures
Government-Controlled Prices
HW: gmsmith@shanahan.org
1. Read Chapter 4, Market Efficiency, Market Failure, and Government Intervention;
I moved the "Blog Archive" to the top right on the blog page so it should be easier to find the daily lesson, HW, and other class material.
Sr. has advised students to check online teaching materials (as we have been doing since the first day of school).
Chapter 11 Section 2 Radical Revolution and Reaction
Checkpoint
What occurred after radicals took control of the Assembly?
Crises and Response
By early 1793, danger threatened France on all sides. The country was at war with much of Europe, including Britain, the Netherlands, Spain, and Prussia. In the Vendée (vahn day) region of France, royalists and priests led peasants in rebellion against the government. In Paris, the sans-culottes demanded relief from food shortages and inflation. The Convention itself was bitterly divided between Jacobins and a rival group, the Girondins.
This is a file from the Wikimedia Commons. Commons is a freely licensed media file repository. Description: Comite de Salut, 1794 18th century print Licensing:
This is a faithful photographic reproduction of an original two-dimensional work of art. The work of art itself is in the public domain for the following reason:
Public domain This image (or other media file) is in the public domain because its copyright has expired.
To deal with the threats to France, the Convention created the Committee of Public Safety. The 12-member committee had almost absolute power as it battled to save the revolution. The Committee prepared France for all-out war, issuing a levée en masse, or mass levy (tax) that required all citizens to contribute to the war effort. In addition, the 12 members of the Committee were in charge of trials and executions.
Spurred by revolutionary fervor, French recruits marched off to defend the republic. Young officers developed effective new tactics to win battles with masses of ill-trained but patriotic forces. Soon, French armies overran the Netherlands. They later invaded Italy. At home, they crushed peasant revolts. European monarchs shuddered as the revolutionaries carried “freedom fever” into conquered lands.
Robespierre “the Incorruptible”
At home, the government battled counterrevolutionaries under the guiding hand of Maximilien Robespierre (rohbz pyehr). Robespierre, a shrewd lawyer and politician, quickly rose to the leadership of the Committee of Public Safety. Among Jacobins, his selfless dedication to the revolution earned him the nickname “the incorruptible.” The enemies of Robespierre called him a tyrant.
Robespierre had embraced Rousseau’s idea of the general will as the source of all legitimate law. He promoted religious toleration and wanted to abolish slavery. Though cold and humorless, he was popular with the sans-culottes, who hated the old regime as much as he did. He believed that France could achieve a “republic of virtue” only through the use of terror, which he coolly defined as nothing more than “prompt, severe, inflexible justice.” “Liberty cannot be secured,” Robespierre cried, “unless criminals lose their heads.”
Biography
Robespierre
Maximilien Robespierre (1758–1794) did not have an easy childhood. His mother died when he was only 6 years old. Two years later, his father abandoned him and his three siblings. The children’s aunts and grandfather then raised them. Because of this, Robespierre assumed responsibilities at an early age. Eventually, he went to study law at the University of Paris. His performance was so noteworthy that he was chosen to deliver a speech to Louis XVI on the occasion of the king’s coronation. But young Robespierre was snubbed. After listening to the address in a pouring rainstorm, the king and queen left without acknowledging Robespierre in any way. Years later, in 1789, Robespierre was elected to the Estates-General, where his career as a revolutionary began.
How do you think Robespierre’s early life might have influenced his political ideas?
The Guillotine Defines the Reign of Terror
Robespierre was one of the chief architects of the Reign of Terror, which lasted from September 1793 to July 1794. Revolutionary courts conducted hasty trials. Spectators greeted death sentences with cries of “Hail the Republic!” or “Death to the traitors!”
In a speech given on February 5, 1794, Robespierre explained why the terror was necessary to achieve the goals of the revolution:
Primary Source
“It is necessary to stifle the domestic and foreign enemies of the Republic or perish with them. . . . The first maxim of our politics ought to be to lead the people by means of reason and the enemies of the people by terror. . . . If the basis of popular government in time of peace is virtue, the basis of popular government in time of revolution is both virtue and terror.”
—Maximilien Robespierre, quoted in Pageant of Europe (Stearns)
Suspect were those who resisted the revolution. About 300,000 were arrested during the Reign of Terror. Seventeen thousand were executed. Many were victims of mistaken identity or were falsely accused by their neighbors. Many more were packed into hideous prisons, where deaths from disease were common.
The engine of the Terror was the guillotine (gil uh teen). Its fast-falling blade extinguished life instantly. A member of the legislature, Dr. Joseph Guillotin (gee oh tan), had introduced it as a more humane method of beheading than the uncertain ax. But the guillotine quickly became a symbol of horror.
Within a year, the Terror consumed those who initiated it. Weary of bloodshed and fearing for their own lives, members of the Convention turned on the Committee of Public Safety. On the night of July 27, 1794, Robespierre was arrested. The next day he was executed. After the heads of Robespierre and other radicals fell, executions slowed dramatically.
Checkpoint
Why did Robespierre think the Terror was necessary to achieve the goals of the revolution?
Reading Check
Examining
What were the differences between the Girondins and the Mountain?
Go Online
For: Interactive French Revolution
Visit: PHSchool.com
Web Code: nap-1821
Thinking Critically
1. Identify Point of View
What were the goals of the Committee of Public Safety?
2. Predict Consequences
How do you think life (it should read "life") in France changed after the Terror came to an end?
Crushing Rebellion
The Republic of Virtue
Reading Check
Identifying
Whom did the Committee of Public Safety consider to be enemies of the state?
A Nation in Arms
End of the Terror
Audio
In reaction to the Terror, the revolution entered a third stage. Moving away from the excesses of the Convention, moderates produced another constitution, the third since 1789. The Constitution of 1795 set up a five-man Directory and a two-house legislature elected by male citizens of property. The middle class and professional people of the bourgeoisie were the dominant force during this stage of the French Revolution. The Directory held power from 1795 to 1799.
Weak but dictatorial, the Directory faced growing discontent. Peace was made with Prussia and Spain, but war with Austria and Great Britain continued. Corrupt leaders lined their own pockets but failed to solve pressing problems. When rising bread prices stirred hungry sans-culottes to riot, the Directory quickly suppressed them. Another threat to the Directory was the revival of royalist feeling. Many émigrés were returning to France, and devout Catholics, who resented measures that had been taken against the Church, were welcoming them. In the election of 1797, supporters of a constitutional monarchy won the majority of seats in the legislature.
As chaos threatened, politicians turned to Napoleon Bonaparte, a popular military hero who had won a series of brilliant victories against the Austrians in Italy. The politicians planned to use him to advance their own goals. To their dismay, however, before long Napoleon would outwit them all to become ruler of France.
Checkpoint
What changes occurred after the Reign of Terror came to an end?
By 1799, the 10-year-old French Revolution had dramatically changed France. It had dislodged the old social order, overthrown the monarchy, and brought the Church under state control.
New symbols such as the red “liberty caps” and the tricolor confirmed the liberty and equality of all male citizens. The new title “citizen” applied to people of all social classes. All other titles were eliminated. Before he was executed, Louis XVI was called Citizen Capet, from the name of the dynasty that had ruled France in the Middle Ages. Elaborate fashions and powdered wigs gave way to the practical clothes and simple haircuts of the sans-culottes.
This is a file from the Wikimedia Commons. Commons is a freely licensed media file repository. Description: Louis le dernier
Louis XVI of France wearing a phrygian cap, drinking a toast to the health of the sans-culottes. Etching and mezzotint, with watercolor. Scanned from a photographic slide.
Captions, in English:
"Long live the nation" (from bottle to mouth)
Below:
Louis XVI, having put on the Phrygian cap, cried 'long live the nation'. He drank to the health of the sans-culottes and affected a show of great calm. He spoke high-sounding words about how he never feared the law, that he had never feared to be in the midst of the people; finally he pretended to play a personal part in the insurrection of June 20. Well! The same Louis XVI has bravely waited until his fellow citizens return to their hearths to wage a secret war and extract his revenge.
Date: 1792 Source: Library of Congress Author: unknown Permission Public domain: This image (or other media file) is in the public domain because its copyright has expired.
This is a file from the Wikimedia Commons. Commons is a freely licensed media file repository. Summary: Cabinet des médailles de la Bibliothèque nationale de France, Paris, France Description: Attis as a child, wearing the Phrygian cap. Parian marble, 2nd century AD, probably during the reign of Emperor Hadrian.
Nationalism Spreads
Revolution and war gave the French people a strong sense of national identity. In earlier times, people had felt loyalty to local authorities. As monarchs centralized power, loyalty shifted to the king or queen. Now, the government rallied sons and daughters of the revolution to defend the nation itself. Nationalism, a strong feeling of pride in and devotion to one’s country, spread throughout France. The French people attended civic festivals that celebrated the nation and the revolution. A variety of dances and songs on themes of the revolution became immensely popular.
By 1793, France was a nation in arms. From the port city of Marseilles (mahr say), troops marched to a rousing new song. It urged the “children of the fatherland” to march against the “bloody banner of tyranny.” This song, “La Marseillaise” (mahr say ez), would later become the French national anthem.
Revolutionaries Push For Social Reform
Revolutionaries pushed for social reform and religious toleration. They set up state schools to replace religious ones and organized systems to help the poor, old soldiers, and war widows. With a major slave revolt raging in the colony of St. Domingue (Haiti), the government also abolished slavery in France’s Caribbean colonies.
Reading Check
Evaluating
How did the French revolutionary army help to create modern nationalism?
The Directory
Reading Check
Describing
Describe the government that replaced the National Convention.
I moved the "Blog Archive" to the top right on the blog page so it should be easier to find the daily lesson, HW, and other class material.
Chapter Three, Demand and Supply
Handout 3-1 is an in-class group exercise with your small group.
Students are asked to draw graphs illustrating shifts in demand and supply
and changes in quantity demanded and supplied. Asking students to document
research about specifics in this topic (for example, changes in planted acreage).
Learning objectives: application of concepts of changes in quantity demanded
and quantity supplied versus changes in demand and supply; demonstration of mastery of graphing techniques; and reinforcement of critical thinking skills.
Web-based Exercise
What’s Been Driving Gasoline Prices?
This example can be used as an in-class group exercise.
Asking students to perform (and document) additional research allows you
to use it as a case study or group project as well. For example, students can be
asked to document gasoline sales to see if, as predicted, an increase in demand
results in both a higher price and a greater quantity sold.
Learning objectives: application of concepts of changes in quantity demanded
and quantity supplied versus changes in demand and supply; demonstration of mastery of graphing techniques; and reinforcement of critical thinking skills.
The Supply and Demand Effects of the Increased Use of Ethanol
Draw a supply and demand graph showing the market for corn in equilibrium. Label the demand curve as “DOld” and the supply curve as “S”. Then illustrate the effect of an increased demand for corn due to its being used to produce ethanol. Explain the changes in price and equilibrium quantity using the vocabulary of “changes in quantity demanded,” and “changes in quantity supplied,” as well as “change in demand” and “change in supply.”
Use a supply and demand graph to illustrate and explain the impact of a higher price of corn on any one of a wide variety of food products; be sure to include the effect on the cost of high-fructose corn syrup.
Send HW in email to gmsmith@shanahan.org for this exercise.
If you already finished Hand-out 3.1 in class; you have no HW; otherwise, finish whatever we did not get to finish in class.
Chapter 4 material, if we get to it, will not be on Wednesday's Test.
We are near the anniversary when the U.S.S. Cole was attacked in October 2000.
Diane McDaniels lost her son James in the terrorist bombing of the U.S.S Cole. 17 American sailors died in that terrorist attack. Ms. McDaniels refused an invitation to the White House to meet with Obama.
Obama requested that the charges against terrorist suspect Abd al-Rahim al-Nashiri, being held in Guantánamo as the primary attacker against the U.S.S. Cole, be dropped. Judge Susan J. Crawford followed Obama's wishes. A sounder grasp of the issues involved may result with sufficient background.
Today's lesson plan and HW is available on the blog: http://gmicksmithsocialstudies.blogspot.com/
Email: gmsmith@shanahan.org
The Shanawiki page (http://shanawiki.wikispaces.com/) has updated class information.
The online version of a portion of the Textbook is available.
I moved the "Blog Archive" to the top right on the blog page so it should be easier to find the daily lesson, HW, and other class material.
Sr. has advised students to check online teaching materials (as we have been doing since the first day of school).
Chapter 11 Section 2 Radical Revolution and Reaction
Checkpoint
What occurred after radicals took control of the Assembly?
Crises and Response
By early 1793, danger threatened France on all sides. The country was at war with much of Europe, including Britain, the Netherlands, Spain, and Prussia. In the Vendée (vahn day) region of France, royalists and priests led peasants in rebellion against the government. In Paris, the sans-culottes demanded relief from food shortages and inflation. The Convention itself was bitterly divided between Jacobins and a rival group, the Girondins.
This is a file from the Wikimedia Commons. Commons is a freely licensed media file repository. Description: Comite de Salut, 1794 18th century print Licensing:
This is a faithful photographic reproduction of an original two-dimensional work of art. The work of art itself is in the public domain for the following reason:
Public domain This image (or other media file) is in the public domain because its copyright has expired.
To deal with the threats to France, the Convention created the Committee of Public Safety. The 12-member committee had almost absolute power as it battled to save the revolution. The Committee prepared France for all-out war, issuing a levée en masse, or mass levy (tax) that required all citizens to contribute to the war effort. In addition, the 12 members of the Committee were in charge of trials and executions.
Spurred by revolutionary fervor, French recruits marched off to defend the republic. Young officers developed effective new tactics to win battles with masses of ill-trained but patriotic forces. Soon, French armies overran the Netherlands. They later invaded Italy. At home, they crushed peasant revolts. European monarchs shuddered as the revolutionaries carried “freedom fever” into conquered lands.
Robespierre “the Incorruptible”
At home, the government battled counterrevolutionaries under the guiding hand of Maximilien Robespierre (rohbz pyehr). Robespierre, a shrewd lawyer and politician, quickly rose to the leadership of the Committee of Public Safety. Among Jacobins, his selfless dedication to the revolution earned him the nickname “the incorruptible.” The enemies of Robespierre called him a tyrant.
Robespierre had embraced Rousseau’s idea of the general will as the source of all legitimate law. He promoted religious toleration and wanted to abolish slavery. Though cold and humorless, he was popular with the sans-culottes, who hated the old regime as much as he did. He believed that France could achieve a “republic of virtue” only through the use of terror, which he coolly defined as nothing more than “prompt, severe, inflexible justice.” “Liberty cannot be secured,” Robespierre cried, “unless criminals lose their heads.”
Biography
Robespierre
Maximilien Robespierre (1758–1794) did not have an easy childhood. His mother died when he was only 6 years old. Two years later, his father abandoned him and his three siblings. The children’s aunts and grandfather then raised them. Because of this, Robespierre assumed responsibilities at an early age. Eventually, he went to study law at the University of Paris. His performance was so noteworthy that he was chosen to deliver a speech to Louis XVI on the occasion of the king’s coronation. But young Robespierre was snubbed. After listening to the address in a pouring rainstorm, the king and queen left without acknowledging Robespierre in any way. Years later, in 1789, Robespierre was elected to the Estates-General, where his career as a revolutionary began.
How do you think Robespierre’s early life might have influenced his political ideas?
The Guillotine Defines the Reign of Terror
Robespierre was one of the chief architects of the Reign of Terror, which lasted from September 1793 to July 1794. Revolutionary courts conducted hasty trials. Spectators greeted death sentences with cries of “Hail the Republic!” or “Death to the traitors!”
In a speech given on February 5, 1794, Robespierre explained why the terror was necessary to achieve the goals of the revolution:
Primary Source
“It is necessary to stifle the domestic and foreign enemies of the Republic or perish with them. . . . The first maxim of our politics ought to be to lead the people by means of reason and the enemies of the people by terror. . . . If the basis of popular government in time of peace is virtue, the basis of popular government in time of revolution is both virtue and terror.”
—Maximilien Robespierre, quoted in Pageant of Europe (Stearns)
Suspect were those who resisted the revolution. About 300,000 were arrested during the Reign of Terror. Seventeen thousand were executed. Many were victims of mistaken identity or were falsely accused by their neighbors. Many more were packed into hideous prisons, where deaths from disease were common.
The engine of the Terror was the guillotine (gil uh teen). Its fast-falling blade extinguished life instantly. A member of the legislature, Dr. Joseph Guillotin (gee oh tan), had introduced it as a more humane method of beheading than the uncertain ax. But the guillotine quickly became a symbol of horror.
Within a year, the Terror consumed those who initiated it. Weary of bloodshed and fearing for their own lives, members of the Convention turned on the Committee of Public Safety. On the night of July 27, 1794, Robespierre was arrested. The next day he was executed. After the heads of Robespierre and other radicals fell, executions slowed dramatically.
Checkpoint
Why did Robespierre think the Terror was necessary to achieve the goals of the revolution?
Reading Check
Examining
What were the differences between the Girondins and the Mountain?
Go Online
For: Interactive French Revolution
Visit: PHSchool.com
Web Code: nap-1821
Thinking Critically
1. Identify Point of View
What were the goals of the Committee of Public Safety?
2. Predict Consequences
How do you think life (it should read "life") in France changed after the Terror came to an end?
Crushing Rebellion
The Republic of Virtue
Reading Check
Identifying
Whom did the Committee of Public Safety consider to be enemies of the state?
A Nation in Arms
End of the Terror
Audio
In reaction to the Terror, the revolution entered a third stage. Moving away from the excesses of the Convention, moderates produced another constitution, the third since 1789. The Constitution of 1795 set up a five-man Directory and a two-house legislature elected by male citizens of property. The middle class and professional people of the bourgeoisie were the dominant force during this stage of the French Revolution. The Directory held power from 1795 to 1799.
Weak but dictatorial, the Directory faced growing discontent. Peace was made with Prussia and Spain, but war with Austria and Great Britain continued. Corrupt leaders lined their own pockets but failed to solve pressing problems. When rising bread prices stirred hungry sans-culottes to riot, the Directory quickly suppressed them. Another threat to the Directory was the revival of royalist feeling. Many émigrés were returning to France, and devout Catholics, who resented measures that had been taken against the Church, were welcoming them. In the election of 1797, supporters of a constitutional monarchy won the majority of seats in the legislature.
As chaos threatened, politicians turned to Napoleon Bonaparte, a popular military hero who had won a series of brilliant victories against the Austrians in Italy. The politicians planned to use him to advance their own goals. To their dismay, however, before long Napoleon would outwit them all to become ruler of France.
Checkpoint
What changes occurred after the Reign of Terror came to an end?
By 1799, the 10-year-old French Revolution had dramatically changed France. It had dislodged the old social order, overthrown the monarchy, and brought the Church under state control.
New symbols such as the red “liberty caps” and the tricolor confirmed the liberty and equality of all male citizens. The new title “citizen” applied to people of all social classes. All other titles were eliminated. Before he was executed, Louis XVI was called Citizen Capet, from the name of the dynasty that had ruled France in the Middle Ages. Elaborate fashions and powdered wigs gave way to the practical clothes and simple haircuts of the sans-culottes.
This is a file from the Wikimedia Commons. Commons is a freely licensed media file repository. Description: Louis le dernier
Louis XVI of France wearing a phrygian cap, drinking a toast to the health of the sans-culottes. Etching and mezzotint, with watercolor. Scanned from a photographic slide.
Captions, in English:
"Long live the nation" (from bottle to mouth)
Below:
Louis XVI, having put on the Phrygian cap, cried 'long live the nation'. He drank to the health of the sans-culottes and affected a show of great calm. He spoke high-sounding words about how he never feared the law, that he had never feared to be in the midst of the people; finally he pretended to play a personal part in the insurrection of June 20. Well! The same Louis XVI has bravely waited until his fellow citizens return to their hearths to wage a secret war and extract his revenge.
Date: 1792 Source: Library of Congress Author: unknown Permission Public domain: This image (or other media file) is in the public domain because its copyright has expired.
This is a file from the Wikimedia Commons. Commons is a freely licensed media file repository. Summary: Cabinet des médailles de la Bibliothèque nationale de France, Paris, France Description: Attis as a child, wearing the Phrygian cap. Parian marble, 2nd century AD, probably during the reign of Emperor Hadrian.
Nationalism Spreads
Revolution and war gave the French people a strong sense of national identity. In earlier times, people had felt loyalty to local authorities. As monarchs centralized power, loyalty shifted to the king or queen. Now, the government rallied sons and daughters of the revolution to defend the nation itself. Nationalism, a strong feeling of pride in and devotion to one’s country, spread throughout France. The French people attended civic festivals that celebrated the nation and the revolution. A variety of dances and songs on themes of the revolution became immensely popular.
By 1793, France was a nation in arms. From the port city of Marseilles (mahr say), troops marched to a rousing new song. It urged the “children of the fatherland” to march against the “bloody banner of tyranny.” This song, “La Marseillaise” (mahr say ez), would later become the French national anthem.
Revolutionaries Push For Social Reform
Revolutionaries pushed for social reform and religious toleration. They set up state schools to replace religious ones and organized systems to help the poor, old soldiers, and war widows. With a major slave revolt raging in the colony of St. Domingue (Haiti), the government also abolished slavery in France’s Caribbean colonies.
Reading Check
Evaluating
How did the French revolutionary army help to create modern nationalism?
The Directory
Reading Check
Describing
Describe the government that replaced the National Convention.
Diane McDaniels lost her son James in the terrorist bombing of the U.S.S Cole in October 2000. 17 American sailors died in that terrorist attack. Ms. McDaniels refused an invitation to the White House to meet with Obama.
Obama requested that the charges against terrorist suspect Abd al-Rahim al-Nashiri, being held in Guantánamo as the primary attacker against the U.S.S. Cole, be dropped. Judge Susan J. Crawford followed Obama's wishes.
The former Commanding Officer of the U.S.S. Cole was interviewed about his feelings when the primary attacker of the ship was released. Retired Navy Commander Kirk Lippold, "expressed disappointment" when he first learned of the decision to drop the charges and remained skeptical, faulting Obama for not consulting the families ahead of time.
Obama, center, back to camera, greets King Abdullah of Saudi Arabia, center, as the G20 leaders meet at London's Buckingham Palace, Wednesday, April 1, 2009. Graphic source: AP Photo/John Stillwell/pool
The 9/11 Families were surprised to discover that Obama directed the U.S. government to support the Saudis against Americans. The Justice Department is supporting the Saudi royal family's bid to be removed from a 9/11 lawsuit.
The families of victims have accused the royal family of financially backing terror groups that carried out the 2001 attack.
Their complaint alleges that the Kingdom of Saudi Arabia, the Saudi High Commission for Relief to Bosnia and Herzegovina (SHC), and four Saudi Princes (acting in both official and personal capacities) made donations to charitable organizations with the knowledge that those organizations were diverting funds to al Qaeda, and that a fifth Saudi prince knowingly provided banking and financial services to Osama bin Laden and al Qaeda.
A lawsuit, Federal Insurance Co. v. Kingdom Of Saudi Arabia, was initiated in 2003 by a consortium of insurance companies seeking to recover more than $300 billion for losses incurred by the 9/11 attacks.
The Saudi princes cited in the claims were:
* Prince Salman bin Abdulaziz al-Saud, president of SHC, who was warned in 2000 of his organization's ties to al Qaeda;
* Crown Prince Sultan bin Abdulaziz al-Saud, the designated successor to King Abdullah, who received warnings as early as 1994 that some Muslim charitable groups were fronts for al Qaeda;
* Prince Naif bin Abdulaziz al-Saud, who as Saudi Minister of the Interior monitors and controls the charities operating in Saudi Arabia;
* Prince Turki al-Faisal bin Abdulaziz al-Saud, who was the director of the Kingdom's Department of General Intelligence ("DGI") until August 2001; and
* Prince Mohamed al Faisal al Saud, who unlike the other princes named is not a government official but a bank manager alleged to have knowingly provided material sponsorship to international terrorism.
"I find this reprehensible," Kristen Breitweiser, a leader of the Sept. 11 families, told The New York Times.
In addition, here is a recent list of funds sent to Muslim majority countries:
17 May 2009
• West Bank and Gaza: $665 million in bilateral economic, humanitarian, and security assistance for the West Bank and Gaza
• Jordan: $250 million, $250 million above the request, including $100 million for economic and $150 million for security assistance
• Egypt: $360 million, $310 million above the request, including $50 million for economic assistance, $50 million for border security, and $260 million for security assistance
• Lebanon: $74 million
• Refugee Assistance: $343 million, $50 million above the request, including humanitarian assistance for Gaza. Funding for the UN Relief and Works Agency programs in the West Bank and Gaza is limited to $119 million (Note: Gaza = Hamas)
• Disaster Assistance: $200 million to avert famines and provide life-saving assistance during natural disasters and for internally displaced people around the world, including Somalia, Zimbabwe, Ethiopia, the Middle East and South Asia
• Peacekeeping: $837 million for United Nations peacekeeping operations, including an expanded mission in the Democratic Republic of the Congo and a new mission in Chad and the Central African Republic
• Africa: $151 million, $18 million above the request, for economic and security assistance for Kenya, Somalia, Southern Sudan, and Zimbabwe
Other recipients might be viewed as allies, humanitarian, or required military aid
• Pakistan: $1.9 billion, $591 million above the request
• $3.6 billion, matching the request, to expand and improve capabilities of the Afghan security forces
• $400 million, as requested, to build the counterinsurgency capabilities of the Pakistani security forces
• Afghanistan: $1.52 billion, $86 million above the request
• Iraq: $968 million, $336 million above the request
• Oversight: $20 million, $13 million above the request, to expand oversight capacity of the State Department, USAID, and the Special Inspector General for Afghanistan to review programs in Afghanistan, Pakistan and Iraq
• Israel: $555 million of the $2.8 billion 2010 request for security assistance, $555 million above the supplemental request. (Note: that means Obama’s original request did not include any money for Israel in 2009)
• International Food Assistance: $500 million, $200 million above the request, for PL 480 international food assistance to alleviate suffering during the global economic crisis
• HIV/AIDS: $100 million, $100 million above the request, for the Global Fund to Fight AIDS, Tuberculosis and Malaria to address a funding shortfall for grants in key countries such as Haiti, The Democratic Republic of the Congo, and Afghanistan. (Note: That means Obama’s original request didn’t include any money for AIDs)
• Mexico: $470 million, $404 million above the request, to address growing violence along the United States-Mexico border by supporting the Government of Mexico’s war against organized crime and drug-trafficking
• Georgia: $242 million to fulfill the United States commitment to the people of Georgia
• Global Financial Crisis: $300 million, $148 million below the request, to address the global financial crisis in developing countries
• Nuclear Non-Proliferation: $55 million, $34.5 million below the request, for the National Nuclear Security Administration to safeguard nuclear material in Russia and other sites world-wide
• Department of Justice: $17 million, matching the request, for counter-terrorism activities and to provide training and assistance for the Iraqi criminal justice system
I moved the "Blog Archive" to the top right on the blog page so it should be easier to find the daily lesson, HW, and other class material.
Chapter Three, Demand and Supply
Handout 3-1 is an in-class group exercise with your small group.
Students are asked to draw graphs illustrating shifts in demand and supply
and changes in quantity demanded and supplied. Asking students to document
research about specifics in this topic (for example, changes in planted acreage).
Learning objectives: application of concepts of changes in quantity demanded
and quantity supplied versus changes in demand and supply; demonstration of mastery of graphing techniques; and reinforcement of critical thinking skills.
Web-based Exercise
What’s Been Driving Gasoline Prices?
This example can be used as an in-class group exercise.
Asking students to perform (and document) additional research allows you
to use it as a case study or group project as well. For example, students can be
asked to document gasoline sales to see if, as predicted, an increase in demand
results in both a higher price and a greater quantity sold.
Learning objectives: application of concepts of changes in quantity demanded
and quantity supplied versus changes in demand and supply; demonstration of mastery of graphing techniques; and reinforcement of critical thinking skills.
The Supply and Demand Effects of the Increased Use of Ethanol
Draw a supply and demand graph showing the market for corn in equilibrium. Label the demand curve as “DOld” and the supply curve as “S”. Then illustrate the effect of an increased demand for corn due to its being used to produce ethanol. Explain the changes in price and equilibrium quantity using the vocabulary of “changes in quantity demanded,” and “changes in quantity supplied,” as well as “change in demand” and “change in supply.”
Use a supply and demand graph to illustrate and explain the impact of a higher price of corn on any one of a wide variety of food products; be sure to include the effect on the cost of high-fructose corn syrup.
Send HW in email to gmsmith@shanahan.org for this exercise.
If you already finished Hand-out 3.1 in class; you have no HW; otherwise, finish whatever we did not get to finish in class.
Chapter 4 material, if we get to it, will not be on Wednesday's Test.
I moved the "Blog Archive" to the top right on the blog page so it should be easier to find the daily lesson, HW, and other class material.
Sr. has advised students to check online teaching materials (as we have been doing since the first day of school).
Chapter 11 Section 2 Radical Revolution and Reaction
Objectives
*Understand how and why radicals abolished the monarchy.
*Explain why the Committee of Public Safety was created and why the Reign of Terror resulted.
*Summarize how the excesses of the Convention led to the formation of the Directory.
*Analyze how the French people were affected by the changes brought about by the revolution.
Terms, People, and Places
faction
elector
coup d'etat
Georges Danton
Jean-Paul Marat
Jacobins
Maximilien Robespierre
suffrage
Reign of Terror
guillotine
nationalism
Marseilles
The Move to Radicalism
The Fate of the King
As the revolution continued, dismal news about the war abroad heightened tensions. Well-trained Prussian forces were cutting down raw French recruits. In addition, royalist officers were deserting the French army, joining émigrés and others hoping to restore the king’s power.
Tensions Lead to Violence
Battle disasters quickly inflamed revolutionaries who thought the king was in league with the enemies. On August 10, 1792, a crowd of Parisians stormed the royal palace of the Tuileries and slaughtered the king’s guards. The royal family fled to the Legislative Assembly, escaping before the mob arrived.
A month later, citizens attacked prisons that held nobles and priests accused of political offenses. About 1,200 prisoners were killed; among them were many ordinary criminals. Historians disagree about the people who carried out the “September massacres.” Some call them bloodthirsty mobs. Others describe them as patriots defending France from its enemies. In fact, most were ordinary citizens fired to fury by real and imagined grievances.
Radicals Take Control and Execute the King
Backed by Paris crowds, radicals then took control of the Assembly. Radicals called for the election of a new legislative body called the National Convention. Suffrage, the right to vote, was to be extended to all male citizens, not just to property owners.
The Convention that met in September 1792 was a more radical body than earlier assemblies. It voted to abolish the monarchy and establish a republic—the French Republic. Deputies then drew up a new constitution for France. The Jacobins, who controlled the Convention, set out to erase all traces of the old order. They seized lands of nobles and abolished titles of nobility.
This is a file from the Wikimedia Commons. Commons is a freely licensed media file repository. Description: JacobinClubDoor.jpg
The Door of the Jacobin Club in the Saint-Honoré Street, Paris, France.
Date: 19th Century Source: G. Lenotre, Paris révolutionnaire, Paris, Firmin-Didot, 1895. This image is in the public domain.
Vocabulary Builder
radical—(rad ih kul) adj. extreme; departure from the usual or traditional
During the early months of the Republic, the Convention also put Louis XVI on trial as a traitor to France. The king was convicted by a single vote and sentenced to death. On a foggy morning in January 1793, Louis mounted a scaffold in a public square in Paris. He started to speak, “Frenchmen, I die innocent. I pardon the authors of my death. I pray God that the blood about to be spilt will never fall upon the head of France. . . .” Then a roll of drums drowned out his words. Moments later, the king was beheaded. The executioner lifted the king’s head by its hair and held it before the crowd.
In October, Marie Antoinette was also executed. The popular press celebrated her death. The queen, however, showed great dignity as she went to her death.
Comparing Viewpoints
On the Execution of a King
On January 21, 1793, King Louis XVI of France was executed by order of the National Convention. Reaction to this event was both loud and varied throughout Europe. The excerpts below present two different views on this event.
Critical Thinking
Which of the two viewpoints makes a better case for or against the execution of King Louis XVI? Cite examples from both statements to support your argument.
For the Execution
The crimes of Louis XVI are unhappily all too real; they are consistent; they are notorious. Do we even have to ask the question of whether a nation has the right to judge, and execute, its highest ranking public official . . . when, to more securely plot against the nation, he concealed himself behind a mask of hypocrisy? Or when, instead of using the authority confided to him to protect his countrymen, he used it to oppress them? Or when he turned the laws into an instrument of violence to crush the supporters of the Revolution? Or when he robbed the citizens of their gold in order to subsidize their foes, and robbed them of their subsistence in order to feed the barbarian hordes who came to slaughter them? Or when he created monopolies in order to create famine by drying up the sources of abundance so that the people might die in misery and hunger? . . .
—Jean-Paul Marat
Against the Execution
The Republican tyrants of France have now carried their bloody purposes to the uttermost diabolical stretch of savage cruelty. They have murdered their King without even the shadow of justice, and of course they cannot expect friendship nor intercourse with any civilized part of the world. The vengeance of Europe will now rapidly fall on them; and, in process of time, make them the veriest wretches on the face of the earth. The name of Frenchman will be considered as the appellation of savage, and their presence shunned as a poison, deadly destructive to the peace and happiness of Mankind. It appears evident, that the majority of the National Convention, and the Executive Government of that truly despotic country, are comprised of the most execrable villains upon the face of the earth. . . .
—London Times, January 25, 1793
The latter perspective, is one of the most well-known perspectives, and is considered the Burkean reaction based on ideas of the Englishman Edmund Burke.
Checkpoint
What occurred after radicals took control of the Assembly?
Crises and Response
By early 1793, danger threatened France on all sides. The country was at war with much of Europe, including Britain, the Netherlands, Spain, and Prussia. In the Vendée (vahn day) region of France, royalists and priests led peasants in rebellion against the government. In Paris, the sans-culottes demanded relief from food shortages and inflation. The Convention itself was bitterly divided between Jacobins and a rival group, the Girondins.
This is a file from the Wikimedia Commons. Commons is a freely licensed media file repository. Description: Comite de Salut, 1794 18th century print Licensing:
This is a faithful photographic reproduction of an original two-dimensional work of art. The work of art itself is in the public domain for the following reason:
Public domain This image (or other media file) is in the public domain because its copyright has expired.
To deal with the threats to France, the Convention created the Committee of Public Safety. The 12-member committee had almost absolute power as it battled to save the revolution. The Committee prepared France for all-out war, issuing a levée en masse, or mass levy (tax) that required all citizens to contribute to the war effort. In addition, the 12 members of the Committee were in charge of trials and executions.
Spurred by revolutionary fervor, French recruits marched off to defend the republic. Young officers developed effective new tactics to win battles with masses of ill-trained but patriotic forces. Soon, French armies overran the Netherlands. They later invaded Italy. At home, they crushed peasant revolts. European monarchs shuddered as the revolutionaries carried “freedom fever” into conquered lands.
Robespierre “the Incorruptible”
At home, the government battled counterrevolutionaries under the guiding hand of Maximilien Robespierre (rohbz pyehr). Robespierre, a shrewd lawyer and politician, quickly rose to the leadership of the Committee of Public Safety. Among Jacobins, his selfless dedication to the revolution earned him the nickname “the incorruptible.” The enemies of Robespierre called him a tyrant.
Robespierre had embraced Rousseau’s idea of the general will as the source of all legitimate law. He promoted religious toleration and wanted to abolish slavery. Though cold and humorless, he was popular with the sans-culottes, who hated the old regime as much as he did. He believed that France could achieve a “republic of virtue” only through the use of terror, which he coolly defined as nothing more than “prompt, severe, inflexible justice.” “Liberty cannot be secured,” Robespierre cried, “unless criminals lose their heads.”
Biography
Robespierre
Maximilien Robespierre (1758–1794) did not have an easy childhood. His mother died when he was only 6 years old. Two years later, his father abandoned him and his three siblings. The children’s aunts and grandfather then raised them. Because of this, Robespierre assumed responsibilities at an early age. Eventually, he went to study law at the University of Paris. His performance was so noteworthy that he was chosen to deliver a speech to Louis XVI on the occasion of the king’s coronation. But young Robespierre was snubbed. After listening to the address in a pouring rainstorm, the king and queen left without acknowledging Robespierre in any way. Years later, in 1789, Robespierre was elected to the Estates-General, where his career as a revolutionary began. How do you think Robespierre’s early life might have influenced his political ideas?
The Guillotine Defines the Reign of Terror
Robespierre was one of the chief architects of the Reign of Terror, which lasted from September 1793 to July 1794. Revolutionary courts conducted hasty trials. Spectators greeted death sentences with cries of “Hail the Republic!” or “Death to the traitors!”
In a speech given on February 5, 1794, Robespierre explained why the terror was necessary to achieve the goals of the revolution:
Primary Source
“It is necessary to stifle the domestic and foreign enemies of the Republic or perish with them. . . . The first maxim of our politics ought to be to lead the people by means of reason and the enemies of the people by terror. . . . If the basis of popular government in time of peace is virtue, the basis of popular government in time of revolution is both virtue and terror.”
—Maximilien Robespierre, quoted in Pageant of Europe (Stearns)
Suspect were those who resisted the revolution. About 300,000 were arrested during the Reign of Terror. Seventeen thousand were executed. Many were victims of mistaken identity or were falsely accused by their neighbors. Many more were packed into hideous prisons, where deaths from disease were common.
The engine of the Terror was the guillotine (gil uh teen). Its fast-falling blade extinguished life instantly. A member of the legislature, Dr. Joseph Guillotin (gee oh tan), had introduced it as a more humane method of beheading than the uncertain ax. But the guillotine quickly became a symbol of horror.
Within a year, the Terror consumed those who initiated it. Weary of bloodshed and fearing for their own lives, members of the Convention turned on the Committee of Public Safety. On the night of July 27, 1794, Robespierre was arrested. The next day he was executed. After the heads of Robespierre and other radicals fell, executions slowed dramatically.
Checkpoint
Why did Robespierre think the Terror was necessary to achieve the goals of the revolution?
Reading Check
Examining
What were the differences between the Girondins and the Mountain?
Go Online
For: Interactive French Revolution
Visit: PHSchool.com
Web Code: nap-1821
Thinking Critically
1. Identify Point of View
What were the goals of the Committee of Public Safety?
2. Predict Consequences
How do you think life (it should read "life") in France changed after the Terror came to an end?
Crushing Rebellion
The Republic of Virtue
Reading Check
Identifying
Whom did the Committee of Public Safety consider to be enemies of the state?
A Nation in Arms
End of the Terror
Audio
In reaction to the Terror, the revolution entered a third stage. Moving away from the excesses of the Convention, moderates produced another constitution, the third since 1789. The Constitution of 1795 set up a five-man Directory and a two-house legislature elected by male citizens of property. The middle class and professional people of the bourgeoisie were the dominant force during this stage of the French Revolution. The Directory held power from 1795 to 1799.
Weak but dictatorial, the Directory faced growing discontent. Peace was made with Prussia and Spain, but war with Austria and Great Britain continued. Corrupt leaders lined their own pockets but failed to solve pressing problems. When rising bread prices stirred hungry sans-culottes to riot, the Directory quickly suppressed them. Another threat to the Directory was the revival of royalist feeling. Many émigrés were returning to France, and devout Catholics, who resented measures that had been taken against the Church, were welcoming them. In the election of 1797, supporters of a constitutional monarchy won the majority of seats in the legislature.
As chaos threatened, politicians turned to Napoleon Bonaparte, a popular military hero who had won a series of brilliant victories against the Austrians in Italy. The politicians planned to use him to advance their own goals. To their dismay, however, before long Napoleon would outwit them all to become ruler of France.
Checkpoint
What changes occurred after the Reign of Terror came to an end?
By 1799, the 10-year-old French Revolution had dramatically changed France. It had dislodged the old social order, overthrown the monarchy, and brought the Church under state control.
New symbols such as the red “liberty caps” and the tricolor confirmed the liberty and equality of all male citizens. The new title “citizen” applied to people of all social classes. All other titles were eliminated. Before he was executed, Louis XVI was called Citizen Capet, from the name of the dynasty that had ruled France in the Middle Ages. Elaborate fashions and powdered wigs gave way to the practical clothes and simple haircuts of the sans-culottes.
This is a file from the Wikimedia Commons. Commons is a freely licensed media file repository. Description: Louis le dernier
Louis XVI of France wearing a phrygian cap, drinking a toast to the health of the sans-culottes. Etching and mezzotint, with watercolor. Scanned from a photographic slide.
Captions, in English:
"Long live the nation" (from bottle to mouth)
Below:
Louis XVI, having put on the Phrygian cap, cried 'long live the nation'. He drank to the health of the sans-culottes and affected a show of great calm. He spoke high-sounding words about how he never feared the law, that he had never feared to be in the midst of the people; finally he pretended to play a personal part in the insurrection of June 20. Well! The same Louis XVI has bravely waited until his fellow citizens return to their hearths to wage a secret war and extract his revenge.
Date: 1792 Source: Library of Congress Author: unknown Permission Public domain: This image (or other media file) is in the public domain because its copyright has expired.
This is a file from the Wikimedia Commons. Commons is a freely licensed media file repository. Summary: Cabinet des médailles de la Bibliothèque nationale de France, Paris, France Description: Attis as a child, wearing the Phrygian cap. Parian marble, 2nd century AD, probably during the reign of Emperor Hadrian.
Nationalism Spreads
Revolution and war gave the French people a strong sense of national identity. In earlier times, people had felt loyalty to local authorities. As monarchs centralized power, loyalty shifted to the king or queen. Now, the government rallied sons and daughters of the revolution to defend the nation itself. Nationalism, a strong feeling of pride in and devotion to one’s country, spread throughout France. The French people attended civic festivals that celebrated the nation and the revolution. A variety of dances and songs on themes of the revolution became immensely popular.
By 1793, France was a nation in arms. From the port city of Marseilles (mahr say), troops marched to a rousing new song. It urged the “children of the fatherland” to march against the “bloody banner of tyranny.” This song, “La Marseillaise” (mahr say ez), would later become the French national anthem.
Revolutionaries Push For Social Reform
Revolutionaries pushed for social reform and religious toleration. They set up state schools to replace religious ones and organized systems to help the poor, old soldiers, and war widows. With a major slave revolt raging in the colony of St. Domingue (Haiti), the government also abolished slavery in France’s Caribbean colonies.
Reading Check
Evaluating
How did the French revolutionary army help to create modern nationalism?
The Directory
Reading Check
Describing
Describe the government that replaced the National Convention.
The Radical Revolution
HW send to gmsmith@shanahan.org.
Which of the two viewpoints makes a better case for or against the execution of King Louis XVI? Cite examples from both statements to support your argument.
For the Execution
The crimes of Louis XVI are unhappily all too real; they are consistent; they are notorious. Do we even have to ask the question of whether a nation has the right to judge, and execute, its highest ranking public official . . . when, to more securely plot against the nation, he concealed himself behind a mask of hypocrisy? Or when, instead of using the authority confided to him to protect his countrymen, he used it to oppress them? Or when he turned the laws into an instrument of violence to crush the supporters of the Revolution? Or when he robbed the citizens of their gold in order to subsidize their foes, and robbed them of their subsistence in order to feed the barbarian hordes who came to slaughter them? Or when he created monopolies in order to create famine by drying up the sources of abundance so that the people might die in misery and hunger? . . .
—Jean-Paul Marat
Against the Execution
The Republican tyrants of France have now carried their bloody purposes to the uttermost diabolical stretch of savage cruelty. They have murdered their King without even the shadow of justice, and of course they cannot expect friendship nor intercourse with any civilized part of the world. The vengeance of Europe will now rapidly fall on them; and, in process of time, make them the veriest wretches on the face of the earth. The name of Frenchman will be considered as the appellation of savage, and their presence shunned as a poison, deadly destructive to the peace and happiness of Mankind. It appears evident, that the majority of the National Convention, and the Executive Government of that truly despotic country, are comprised of the most execrable villains upon the face of the earth. . . .
Ce contenu est diffusée sous la licence Creative Commons Attribution-ShareAlike 2.5 (appelée parfois licence by-sa).
"Name originally given to a group of Left-wing deputies in the Legislative Assembly, who supported [the] policy of a `revolutionary war' in the autumn and winter of 1791 and many of whom . . . came from the Gironde region. Later applied to a wider group sharing a more or less common political and social programme in opposition to that of the main body of Jacobins (Rude, p. 255)."
The Vendée was one of Europe's last great rural rebellions. . . . (p. vii) A series of local conflicts which had much in common with the standard local conflicts of the old regime evolved and coalesced into a rebellion which was emphatically counter-revolutionary (p. ix).
The Jacobin Club was the largest and most powerful political club of the French Revolution. It originated as the Club Benthorn, formed at Versailles as a group of Breton deputies to the Estates General of 1789. At the height of its influence, there were thousands of chapters throughout France, with a membership estimated at 420,000. After the fall of Robespierre the club was closed.
Initially moderate, after the death of Mirabeau the club became notorious for its implementation of the Reign of Terror and for tacitly condoning the September Massacres. To this day, the terms Jacobin and Jacobinism are used as pejoratives for left-wing revolutionary politics and more recently for extremist centralist views.
Formed shortly after The Estates-General of 1789 was convened at Versailles, the club was first composed exclusively of deputies from Brittany, but they were soon joined by other deputies from regions throughout France. Among its early members were the dominating Mirabeau, Parisian deputy Abbé Sieyès, Dauphiné deputy Antoine Barnave, Jérôme Pétion, the Abbé Grégoire, Charles Lameth, Alexandre Lameth, Robespierre, the duc d'Aiguillon, and La Revellière-Lépeaux. It also counted Indian ruler Tipu Sultan among its ranks. At this time its meetings occurred in secret and few traces remain of what took place at them, or where they were convened.
I moved the "Blog Archive" to the top right on the blog page so it should be easier to find the daily lesson, HW, and other class material.
Chapter Three, Demand and Supply
Extended Examples in the Chapter
Examples Used in the End-of-Chapter Questions
For Further Analysis
The Supply and Demand Effects of the Increased Use of Ethanol
Handout 3-1 is an in-class group exercise with your small group.
Students are asked to draw graphs illustrating shifts in demand and supply
and changes in quantity demanded and supplied. Asking students to document
research about specifics in this topic (for example, changes in planted acreage).
Learning objectives: application of concepts of changes in quantity demanded
and quantity supplied versus changes in demand and supply; demonstration of mastery of graphing techniques; and reinforcement of critical thinking skills.
Web-based Exercise
What’s Been Driving Gasoline Prices?
This example can be used as an in-class group exercise.
Asking students to perform (and document) additional research allows you
to use it as a case study or group project as well. For example, students can be
asked to document gasoline sales to see if, as predicted, an increase in demand
results in both a higher price and a greater quantity sold.
Learning objectives: application of concepts of changes in quantity demanded
and quantity supplied versus changes in demand and supply; demonstration of mastery of graphing techniques; and reinforcement of critical thinking skills.
The Supply and Demand Effects of the Increased Use of Ethanol
Draw a supply and demand graph showing the market for corn in equilibrium. Label the demand curve as “DOld” and the supply curve as “S”. Then illustrate the effect of an increased demand for corn due to its being used to produce ethanol. Explain the changes in price and equilibrium quantity using the vocabulary of “changes in quantity demanded,” and “changes in quantity supplied,” as well as “change in demand” and “change in supply.”
Use a supply and demand graph to illustrate and explain the impact of a higher price of corn on any one of a wide variety of food products; be sure to include the effect on the cost of high-fructose corn syrup.
Send HW in email to gmsmith@shanahan.org for this exercise.
If you already finished Hand-out 3.1 in class; you have no HW; otherwise, finish whatever we did not get to finish in class.
We got as far as:
Supply and Demand
HANDOUT 3
Draw a supply and demand graph showing the market for corn in equilibrium. Label the demand curve as “DOld” and the supply curve as “S”. Then illustrate the effect of an increased demand for corn due to its being used to produce ethanol. Explain the changes in price and equilibrium quantity using the vocabulary of “changes in quantity demanded,” and “changes in quantity supplied,” as well as “change in demand” and “change in supply.”
Use a supply and demand graph to illustrate and explain the impact of a higher price of corn on any one of a wide variety of food products; be sure to include the effect on the cost of high-fructose corn syrup.
Use a supply and demand graph to illustrate and explain the impact of higher corn price on cost of animal feeds and the resulting impact on prices of beef, pork, etc.
Use a supply and demand graph to illustrate the response by farmers to higher corn prices in terms of planting more acres in corn.
Will the increased planting of corn lead to decreased production of other crops such as soybeans and wheat? If so, what is the impact on the prices of goods that use those ingredients? Use a supply and demand graph to illustrate and explain.
