Econ Resource Link

If you need additional resources, please go to the following:

http://www.thomsonedu.com/economics/mankiw/edition_4/macro.html

This is the AP textbook resource website!

Educational Links and Additional Help

If anyone needs additional tutoring, please see me/email me to set up individual times and dates. I can also provide links to additional econ resources, if needed.

Honors Economics/Economics Test Dates

Test dates are not definite, as I prefer to base test dates on student readiness, not a strict schedule dictated by school policy. With that being said, it appears your test on Unit V, Globalization, will be next Monday, November 8th--if all goes as planned.

Honors Econ Standards for Unit VI

SSEPF1
The student will apply rational decision to the making of personal spending and savings choices.
Element: SSEPF1.a
Explain that people respond to positive and negative incentives in predictable ways.
Element: SSEPF1.b
Use a rational decision making model to select one option over another.
Element: SSEPF1.c
Create a savings or financial investment plan for a future goal.

SSEPF2
The student will explain that banks and other financial institutions are businesses which channel funds from savers to investors.
Element: SSEPF2.a
Compare services offered by different financial institutions.
Element: SSEPF2.b
Explain reasons for the spread between interest charged and interest earned.
Element: SSEPF2.c
Give examples of the inverse relationship between risk and return.
Element: SSEPF2.d
Evaluate a variety of savings and investment options, including stocks, bonds and mutual funds.

SSEPF3
The student will explain how changes in monetary and fiscal policy can impact an individual's spending and savings choices.
Element: SSEPF3.a
Give examples of who benefits and who loses from inflation.
Element: SSEPF3.b
Define progressive, regressive and proportional taxes.
Element: SSEPF3.c
Explain how an increase in sales tax affects different income groups.

SSEPF4
The student will evaluate the costs and benefits of using credit.
Element: SSEPF4.a
List factors that affect credit worthiness.
Element: SSEPF4.b
Compare interest rates on loans and credit cards from different institutions.
Element: SSEPF4.c
Explain the difference between simple and compound interest rates.

SSEPF5
The student will describe how insurance and other risk-management strategies protect against financial loss.
Element: SSEPF5.a
List various types of insurance such as automobile, health, life, disability and property.
Element: SSEPF5.b
Explain the costs and benefits associated with different types of insurance.

SSEPF6
The student will describe how the earnings of workers are determined in the marketplace.
Element: SSEPF6.a
Identify skills which are required to be successful in the workplace.
Element: SSEPF6.b
Explain the significance of investment in education, training and skill development.

Honors Econ and Economics Classes

Your closed book unit test will be Monday, October 25th. We will review in class beginning Thursday. Make sure you study your handout packets, study guide and pretests. Questions on the unit test will come from those sources! Good luck!

AP Macroeconomics

Your unit 3 test will be on Monday, October 25th. There will be study sessions Friday morning and Monday Morning.

Honors/Economics

Make sure you have your book for class this week. We will be working on handout packets and open book quizzes/pretests to start our newe unit on Taxes and the Federal Government.

AP Macroeconomics

This has been a rough week with all the testing, senior breakfast, band trip, chorus trip, etc. Not a whole lot of class time to get things done. Make sure you have completed all handouts and you are reading over chapter 20 in your textbook.

Honors World History

Great job on the Incan rope bridge project! How amazing was it to see a 200 pound football player held up by a suspension cable made entirely of newspaper!

Our next project will coincide with our current unit on the Middle Ages in Europe. We will be constructing paper castles in class. Make sure you have available colored pencils on those days we work on the projects in class.

I am in the process of sorting and grading your last unit essays. More details in class later......

AP Macroeconomics

Your next unit test will be after the fall break. It will cover measures of economic growth (GDP, CPI, unemployment, etc.) as well as a few review questions from the previous unit. Study sessions will be held prior to the test. Times and dates TBA!

Honors World History Children's Book Project

Projects will be due at the beginning of class on Tuesday, September 27th. I have extended the due date from Monday to Tuesday to allow for any last minute changes/corrections that may need to be made after the fall break. Do a great job and be ready to read your stories to the class!

HonorsEcon/Econ Unit II Standards

SSEMI4
The student will explain the organization and role of business, and analyze the four types of market structures in the U.S. economy.
Element: SSEMI4.a
Compare and contrast three forms of business organization--sole proprietorship, partnership, and corporation.
Element: SSEMI4.b
Explain the role of profit as an incentive for entrepreneurs.
Element: SSEMI4.c
Identify the basic characteristics of monopoly, oligopoly, monopolistic competition and pure competition.

Honor Economics/Economics Unit II test, 9/9-9/10

This week we are completing the open book pod quiz for Unit II. The closed book quiz will be next Thursday/Friday.

Honors World History Unit II test next Wednesday!

Unit II test will be on Wednesday, September 8th! Start reviewing now. Study session the morning of the test.

Honors World History Greek Tabloid Project

Make sure you carefully review the rubric in your handouts to be certain you have done everything that is required to earn the full 450 points. Any projects turned in late or incomplete will be subject to a severe reduction in points.

Economics Unit Test on Monday

Make sure you read over your notes and handouts. Test will be multiple choice and graphing!

Ap Macro Unit Test On Monday

Make sure you review your notes and handouts for the test. Test is multiple choice and graphing. Bring your Supply/Demand Index Card "Cheat Sheet" for the test.

Honors World History
STEVEN.ROBINSON@cobbk12.org

Course Description: Today, humans are found everywhere on Earth, in jungle and desert, in boulevard and bazaar. But how did we get there? Where did we come from? And why do we all look and act so differently? This course answers those questions by tracing the human race from its origins to modern times. Beginning with earliest human history, we will chart the course of humanity through its earliest civilizations forward on to the global community of the 21st century.

Text Book: World History: Patterns of Interaction

Make Up Work Policy: See agenda for Cobb County School District policies in place concerning student absences and make up work.

Late work: No full credit for late work (any exceptions to this rule is teacher discretion). Fifty percent of the total grade for a particular assignment is the maximum awarded for any late work. Those who habitually hand in late work will risk the chance of late work no longer being accepted.

Class Requirements: You must pass this class to graduate! Bring all required items to class everyday, unless told in advance by teacher. These items include: Textbook, Notebook paper, Writing utensil

Food/Drink: The only item allowed in class during insturcitional time is water unless otherwise specified. Lunch time is for consuming lunch.

Restroom Policy: Passes granted only in emergency cases (Teacher is final judge as to the validity/severity of an emergency). No passes during the first 10 minutes of class will be issued.

Projects: We will have multiple projects throughout the course. Some are individual and some are group efforts. Sufficient advanced notice of project requirements and deadlines will be given. Late projects will result in a deduction of one letter grade per day.

NO NAME Policy: NO NAME = 20% lost credit on assignment
Cheating Policy: Policy set forth in student handbook will be adhered to.

Grading:
Tasks/Classwork 20%
Chapter Quizzes 20%
Projects 20%
Tests/Exams 30%
Final Exam 10%

Cheating = 0

Course Outline:
Unit 1 Beginnings of Civilization
A) Earliest Humans
B) Early River Valley Civilizations
C) Spread of Civilization

Unit 2 Age of Empires
A) The Near East
B) The Far East
C) Southern Europe
D) Africa
E) The Americas

Unit 3 The Age of Exchange and Encouter
A) Muslim World
B) Christian Europe
C) Far Eastern Empires
D) Wealth of Africa

Unit 4 When Worlds Collide
A) The Americas
B) Europe in Transition (Renaissance and Reformation)
C) Ottoman Empire
D) India

Unit 5 Absolutism to Revolution
A) Absolute Monarchs
B) Enlightenment and Revolution

Unit 6 The Industrial World
A) Industrial Revolution
B) Democracy
C) Imperialism

Unit 7 The Great War
A) World War I
B) Revolution and Nationalism
C) Postwar Uncertainty

Unit 8 World War II
A) Causes
B) Effects

Unit 9 The Modern World
A) The Cold War
B) Era of New Nations
C) Struggle for Democracy
D) Global Interdependence
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I have read the course syllabus and understand the rules and procedures for Honors World History.

_________________________________________________
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Name of Student___________________________________________

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Economics Syllabus

Course Description: The vast majority of the world’s population participates in some form of economic activity on a daily basis. Whether bartering goods using shells or investing in world markets, economic interactions are necessary in our lives. This course is a detailed study of the six primary principles of economics: fundamental concepts, microeconomics, free enterprise, macroeconomics, governmental economic policy, and international economics. You will be expected to actively participate in the analysis of the various topics that we will address. This will be done via several techniques including but not limited to: class discussions, large and small group discussions, simulations, videos, and class projects.

The emphasis of this course is getting you to think analytically about economics, an issue you will surely experience for the rest of your lives.

Materials Required: Red, Black, and Green pens, pencils, one 3 ring binder, one package of dividers, two packs of 3 x 5 notecards

Textbook: Economics: Principles in Action by Prentice Hall ($51.47)

Units of Study
Unit 1 Intro to Econ
Unit 2 Microeconomics
Unit 3 Free Enterprise
Unit 4 Macroeconomics
Unit 5 Government and the Economy
Unit 6 International Economics

Grade Percentages:
Tests 35%
Daily Assignments/Quizzes/Vocabulary 30%
Projects 15%P
articipation 5%
EOCT 15%
EXPECTATIONS
1. Be on time for class. Class will start when the bell rings. Tardy policy in Student Handbook will be followed strictly. Additionally, class ends when the teacher has decided so.
2. Come Prepared to class with your textbook, notebook, and pen/pencils. I am not responsible for supplying you with these items.
3. Participate in class discussion and activities.
4. COMPLETE all assignments. There is a strong correlation between students with borderline grades and those who have not completed assignments. No matter how big or small the assignment, DO IT!
5. SCHOOL POLICY will be STRICTLY FOLLOWED concerning dress code and hats in the classroom
6. SCHOOL POLICY will be STRICTLY FOLLOWED concerning the use of headphones and electronic devices.
7. Only WATER will be allowed in class unless otherwise indicated by teachers.
8. RESPECT others and their property. After all, you want to be treated well too.
9. YOU are responsible for completing your work with the exception of some major projects, ALL HOMEWORK AND DAILY WORK IS DUE ON TIME. Late work will be accepted one day late for half credit. Late Projects grades will decrease by one letter grade for every day late. If you know that you will be absent from school for any reason, have someone bring your project to school.
10. MAKE-UP WORK – IT’S YOUR RESPONSIBLILTY to schedule the day and time to make up any missed assignments when excused a timely fashion. Make-ups are generally offered on Tuesdays.
11. WORK HARD!!! DON’T HARDLY WORK!!

ACADEMIC INTEGRITY
Cheating is considered a serious matter. The parents of a student who has been involved in cheating will be notified and the student will receive a grade of zero for the test or evaluation period, and a grade of U in conduct.For this course, cheating is defined as, but is not limited to, the following acts:§ Copying anyone’s answers to questions, exercises, study guides, classwork or homework assignments§ Taking any information verbatim from any source, including the Internet, without giving proper credit to the author, or rearranging the order of words and/or changing some words as written by the author and claiming the work as his or her own, i.e., plagiarism.§ Looking onto another student’s paper during a test or quiz.§ Having available any study notes or other test aids during a test or quiz without the teacher's permission.§ Collaborating on assignments when independent work is expected.§ Students displaying cell phones during tests and/or quizzes will have their cell phones confiscated, and will be given a zero for that test or quiz.Confirmation.

YOUR SIGNATURE BELOW INDICATES YOURAGREEMENT WITH THE FOLLOWING:§ I have read and understand the academic integrity policy.§ I have reviewed the class syllabus and understand the grading policy.§ I give permission for my child to view G, PG or PG13 movies if they are related to the curriculum of the class.§ I give permission for my child to read the class parallel readings noted in the syllabus.§ I am willing to be contacted by email.§ I have access to the internet and will access the Pinnacle parent feature (once it is available) to check on my child's progress. I understand that teachers will make every effort to post grades within 2 weeks of accepting the assignment, but that posting of grades for larger papers and projects may extend beyond the 2 week timeframe.

Student Signature ________________________________________

Date:_________

Parent/Guardian Signature _____________________________

Date:_________

Contact Information:

Name of Parent____________________________________________________________

Parent Telephone Number_____________________ (H)______________________(W)

Parent Email ___________________________________________________________

Syllabus A.P. Macroeconomics

The purpose of an Advanced Placement course in macroeconomics is to give students a thorough understanding of the principles of economics that apply to national income and price determination, economic performance measures, economic growth, and international economics.

Materials:In order to be fully prepared, students are expected to have their notebooks (one with pockets to hold handouts), and pens or pencils in class everyday. You will be advised ahead of time if you need any additional materials.

Grading Procedures:Students will be assessed in a variety of ways. This may include but not be limited to homework, worksheets, quizzes, tests, daily work, projects (both individual and group), and a final exam.

The break down of these grades will be as follows:
Tests: 40%.
Daily Activities: 40%
Projects: 5%
State Mandated End of Course Test 15%

Students and parents must understand up front that this is a college level class. As such, students will be expected to spend a great deal more time on this class than they would in an ordinary class. The very nature of economics makes it almost like a foreign language—with its own vernacular and vocabulary. It is very important for the student to work on economics daily or they will ultimately get behind and not be able to catch up.

SUMMARY OUTLINE: AP MACROECONOMICS COURSE AND EXAMINATION
Content Area % goals of examination
I. Basic economic concepts 8-12%
A. Scarcity, choice and opportunity costs
B. Production possibilities curve
C. Comparative advantage, absolute advantage, specialization and exchange
D. Demand, supply, market equilibriumE. Macroeconomic issues, business cycle, unemployment, inflation and growth

II. Measurement of economic performance 12-16%
A. National income accounts (4-6%)
1. Circular flow
2. Gross Domestic Product
3. Components of Gross Domestic Product
4. Real versus nominal Gross Domestic Product
B. Inflation measurement and adjustment (4-5%)
1. Price indices
2. Nominal and real values
3. Costs of inflation
C. Unemployment (4-5%)
1. Definition and measurement
2. Types of unemployment
3. Natural rate of unemployment

III. National income and price determination 10-15%
A. Aggregate demand (5-8%)
1. Determinants of aggregate demand
2. Multiplier and crowding-out- effects
B. Aggregate supply (5-8%)
1. Short-run and long run analyses
2. Sticky versus flexible wages and prices3. Determinants of aggregate supply
C. Macroeconomic equilibrium (5-8%)
1. Real output and price level
2. Short and long run
3. Actual versus full-employment output
4. Economic fluctuations

IV. Financial Sector 15-20%
A. Money, Banking, and financial markets (7-15%)
1. Definition of financial assets: money, stocks, bonds
2. Time value of money
3. Measure of money supply
4. Banks creation of money
5. Money demand
6. Money market
7. Loanable funds market
B. Central bank and control of the money supply (3-5%)
1. Tools of central bank policy
2. Quantity theory of money
3. Real versus nominal interest rates

V. Inflation, Unemployment, and Stabilization Policies (20-30%)
A. Fiscal and monetary policies (15-20%)
1. Demand-side effects
2. Supply-side effects
3. Policy mix
4. Government deficits and debt
B. Inflation and unemployment (5-10%)
1. Types of inflation
a. Demand-pull inflation
b. Cost push inflation
2. The Phillips curve: short run versus long run
3. Role of expectations

VI. Economic Growth and Productivity (5-10%)
A. Investment in human capital
B. Investment in physical capital
C. Research and development, and technological progress
D. Growth policy

VII. Open Economy: International Trade and Finance (10-15%)
A. Balance of payments accounts
1. Balance of trade
2. Current account
3. Capital account
B. Foreign exchange market
1. Demand for and supply of foreign exchange
2. Exchange rate determination
3. Currency appreciation and depreciation
C. Net exports and capital flows
D. Links to financial and goods markets
Note: The percentages approximate the weight on the AP exam. These change from year to year so I will be making adjustments as needed. I reserve the right to make adjustments in course content and/or grading procedures as needed.Copyright College Entrance Examination Board and Educational Testing Services

CLASSROOM RULES AND PROCEDURESSchool Policies/General Information:- All school policies will apply in the classroom. This includes the policy on food, drink, candy and gum in the classroom.Class Preparation:- Students are expected to be in the room when the bell rings. Failure to abide by this will result in the student being counted as tardy.

Classroom Behavior:- This class is conducted like a college level classroom. You are expected to participate in all activities.- Unless it is an extreme emergency no bathroom passes will be issued.Homework:-
Homework will be a part of this class. Homework, reports and projects will be accepted late at a penalty of 25% per day. If you have an excused absence, pre assigned work is due the day you return.
Grading:- Students with excused absences will have five class days to make up homework, tests or exams. Failure to make up a test within five days will result in a zero. Makeup work is your responsibility. High school students tend to study independently while college students tend to study in groups. This is a college level class. Study in groups!!!. However, honesty is expected on all work. Only your work will be accepted. Copying other people’s homework is not studying together and is considered cheating and will be dealt with accordingly.
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I have read the class outline and Rules for Mr. Robinson's A.P. Economics class:

Student Signature _____________________________ Date ____________

Parent Signature _____________________________ Date ____________

Study Sessions

Any students needing extra help studying for finals/AP exams/EOCT exams should see Mr. Robinson to set up tutoring sessions before or after school this week and/or next.

Honors World History

Last unit test will be this Thursday//Friday over chapters 32 and 33. 34-36 will be included on the final exam.

Study guides for the final exam will be given out at the end of this week. Make sure you complete this regardless of whether you are exempting the final or not.

Important Dates for Economics

EOCT tests are online and will be given on the following days:

2nd period copper Wednesday, May 5th
3rd period copper Wdnesday, May 5th

2nd period black Tuesday, May 11th
3rd period black Tuesday, May 11th


AP macro exam is Thursday, May 13th

ECON EOCTs are fast approaching!

Make sure you are keepingg up with the review sheets and handouts we are doing and going over in class. So far, many of you are doing very well. Others need a little more review. We want to make sure we do our absolute best on the Econ EOCT!

AP Macro

Make sure you complete the 6 handouts you started in class on Tues/Wed. There will be a short quiz over the material. You may use your handouts.

Honors World History

The next unit test will be Monday, March 15th. The test will cover chapters 23 and 24--Latin American revolutions and the rise of nationalism.

Honors Economics

Electric car ad campaigns are due to present to the class on Thursday, March 18th and Friday, March 19th. Make sure you research your vehicle and are able to answer any questions your classmates may have.

Honors Economics

Resurrecting the Electric Car: The Chevy Volt Ad Campaign

A. Now that you’ve seen the video clips for the new Volt, let’s see how well you can promote and advertise GM’s new, crowning achievement.

In your groups, create a rough draft advertising poster as if you were an advertising firm vying for GM’s business. Remember this account could mean tens of millions of dollars for your advertising company (that equates to text exemption on the next closed book test in this class).

Your pitch ad should contain the following:

I. A campaign slogan to grab consumer attention

II. Attractive layout and design to draw the consumer in

III. A list of Volt qualities:
A. value to the consumer
B. value to the environment
C. Sex Appeal/Desirability factor—make people want it!

B. Create a brief (3-5 minutes) presentation for the class in the manner of an advertising sales pitch. It should be a final draft of your earlier creation and should be as professional as possible. Create a name for your firm and present your idea as a product of that firm!

AP Macro Econ

The take home portion of your unit 5 exam will be given out on Thursday/Friday and due on Monday, March 1st. The multiple choice portion will be completed in class on Monday. Make sure you go over your notes and handouts!

Honors World History Test

Your next test will be over chapters 21 and 22. The test will be Thursday/Friday, February 18th/19th. Make sure you keep up with your notes and handouts!

Honors World History Assignment

Make sure you read chapter 21 in your textbook. Complete the chapter 21 handout you were given in class, as well as the chapter assessment (pgs 618-619).

AP Macro extra credit for this week's test!

On test day, give Mr. Robinson the answers to the following questions (answers only) for 10 bonus points.

1. Commodity money is money with ________ value (opposite of extrinsic).
2. Which is most liquid, M1 or M2?
3. Currency + demand deposits + travelers' checks + other checkable deposits = ________.
4. Is Savings included in M1?
5. What is the money multiplier formula?

Honors World History Unit Test Thursday/Friday

Over the Age of Exploration and Conquest. I will not be able to have study sessions for this test due to AP Macroeconomics testing, but I will provide you with a thorough study guide handout!

AP Macro Test This Thursday/Friday!

Make sure you are keeping up with your notes and reading. There will be study sessions Wednesday afternoon, Thursday morning and Friday morning for those interested.

Honors Economics Notes on Demand

Demand: What is it?
Demand
The desire to own something and the ability to pay for it
Law of Demand
When a good’s price is lower, consumers will buy more of it
When a good’s price is higher, consumers will buy less of it
How much would you pay for a slice of pizza?

Law of Demand: How it emerges
2 Factors that create the Law of Demand
#1 Substitution Effect--Consumer reaction to price increase
Result: consume less of good and more of another(Pizza vs Tacos)
#2 Income Effect--Change in consumption b/c of real income change
Gas Price ↑ Favorite Pizza Parlor↓

Demand Schedule

Demand Schedule
A table showing quantities people will buy at given prices
Market Demand Schedule
A table showing quantities all people will buy at given prices
Demand Curve
Graphic Representation of a demand schedule
Demand Curve







Demand curves function this way assuming no other factors change
Demand Curve
Ceteris paribus “all other things remain constant”
Demand curves function this way assuming no other factors change
Only considers price as a factor
When ceteris paribus is dropped, the whole curve shifts


What Causes Demand Shifts?
#1 Income
Normal goods – consumers demand more when they have more income
Example: buying more pizza
Inferior Good – consumer demands less of when income increases
Ex: Mac’n Cheese, Ramen noodles and SPAM!!!!!!

Causes of Demand Shifts
#2 Consumer Expectations
Future Prices determine spending habits
Will the item(s) be on sale or more expensive in the future?
#3 Population
Growing populations need more goods
Example: Baby boom, Post WWII
More needs for baby goods

#4 Consumer Tastes and Advertising
Consumers opinions are effected by popularity of items and ads appealing to their desires

Elasticity of Demand
How consumers react to change in price:
Inelastic
Demand isn't sensitive to a change in price
Elastic
Demand is sensitive to a change in price
Calculating Elasticity
PEoD = (% Change in Quantity Demanded)/(% Change in Price)
Price Range
Goods can go from being inelastic to elastic
For Example: $1.00 pizza sliceÞ $1.50 versus $1.00Þ $4.00

Values of Elasticity
Unitary Elastic
Demand whose elasticity is exactly equal to 1
Quantity demanded is = to percentage change in price
Increase of price 50%, demand effected by 50%
Factors Affecting Elasticity
Available Substitutes
Is there something else that can replace the demand you have?
Relative Importance
How much of your budget would you spend on the item--The larger the item is in the budget, the more effect is has upon elasticity
Necessities vs. Luxuries
Change Over Time
Demand becomes more elastic over time



Total Revenue
Amt of $ a firm receives by selling goods or services
Firms must know if goods are elastic or inelastic
This helps to make sure they make maximum revenue

Honors Economics

Intro Unit 1, Lesson 1

ECONOMICS: Concerned with the efficient use and management of limited productive resources to achieve maximum satisfaction of human material wants.

ECONOMICS: The study of our behavior in producing, distributing, and consuming material goods and services in a world of scarce resources.

SCARCITY: WANTS EXCEED RESOURCES

ECONOMICS: The study of how limited resources are allocated in a world of unlimited wants.

We want more than we are capable of getting.


MICROECONOMICS: deals with specific economic units and a detailed consideration of these individual units. The economist is placing a specific portion of the economy under a microscope.

MACROECONOMICS: Deals either with the economy as a whole or the basic subdivision or aggregates such as government, household, or business sectors, which make up the economy.

relation v. causation: Just because something happens when something else happens does not mean one caused the other. It may just be that they are correlated. (They are associated in some systematic but dependable way.) It may be that a third variable is the cause yet that variable makes the first two correlated.
An example of this is hot weather and electric bills. When the weather gets hot your parents’ electric bills go up. These two are not related by causation. (one does not cause the other.) Instead, they are correlated. When the weather gets hot the air conditioners are turned on and this causes the electric bills to go up.

To illustrate the example of ceteris parabus use the example of shooting a bullet out of a gun at an angle. How far does the bullet travel. In physics what do you consider? Velocity, projectory, friction (air pollution)...

CETERIS PARIBUS: Means other things being equal. In economics when you are working on a problem we must assume that only those variables will change. All others remain the same.

Unit One: Lesson 2

Once again, look at the definitions of Economics. Relate this to limited resources.

ECONOMICS: Concerned with the efficient use and management of limited productive resources to achieve maximum satisfaction of human material wants.

ECONOMICS: The study of our behavior in producing, distributing, and consuming material goods and services in a world of scarce resources

SCARCITY: WANTS EXCEED RESOURCES

ECONOMICS: The study of how limited resources are allocated in a world of unlimited wants.

Economics is the study of the distribution of goods and services. It is all based on the idea that we live in a world of unlimited wants with limited or scares resources.

Examples of Resources are:
1) Land: This includes the land and its natural resources

2) Labor: This includes all services of people used in production except Entrepreneurial ability, which will be discussed later.

3) Capital: This is all the things used in production. Can anyone give me examples? (Tools, machinery, equipment, the factory itself...) (Notice that money is not capital because it in itself is useless.)

4) Entrepreneurial Ability: This is the person responsible for taking the first three and combining them into a product or service. He is also the one who bears the risk of the undertaking.

Some assumptions are (CETERIS PARIBUS)
1) Fixed Resources:

2) Fixed Technology:

3) Two Products: (Usually one capital good and one consumer good)

4) We are achieving economic efficiency:
Inside the PPC you would not be at economic efficiency. We might not be at full employment.
This could be that workers that want to work can not find jobs. We are not at FULL EMPLOYMENT.

This also assumes that what is being produced is what we want to be produced.

ALLOCATIVE EFFICIENCY: Resources are devoted to goods most wanted by society.

PRODUCTIVE EFFICIENCY: Least costly production techniques are used to produce wanted goods and services. If you building boats by hand you are not utilizing full production.







Given that we have a world of unlimited wants in a world of limited resources we must decide how to allocate production to satisfy society. We must look at our production possibilities.

Production Possibilities Curve (also called Production Possibility Frontier)
1. What are the tradeoffs involved?
Must give up units of one good in order to produce units of the other.
Notice that if they give up more capital goods for consumer goods they are hurting their future.

2. Why is the PPC concave?
As more and more of a good is produced it takes more away from the other because the resources are not easily converted. (Law of Increasing Opportunity Costs)

3. What does a point inside the curve represent?
A point in which efficiency is not being achieved.

4. Can you think of an example in history when we were inside the PPC?
Great Depression

5. What is the significance of a point outside the PPC.
Without advancements in technology or changes in factors of production this is unattainable for long period of time.
Suppose that additional resources (land, labor, capital and entrepreneurial ability was found. (In other words the economy is expanding.) HOW WOULD THIS AFFECT OUR PPC? (It would shift it outward.)
The same is true for technological advancements

One thing a society must decide is if it wants to produce more goods that will help it advance or more goods that it can consume now. Should we produce at A or B? Either works, it just depends on what society wants. However, A will help you advance quicker in the long run.

6. Under what conditions could the point outside the PPC be reached?
Technological advancements or new resources

Make sure that students understand that no point on the curve is more desirable from an economist standpoint. That gets into societies specific wants, which is outside the scope of the class.

OPPORTUNITY COSTS: THE AMOUNT OF OTHER PRODUCTS WHICH MUST BE FOREGONE OR SACRIFICED TO OBTAIN SOME AMOUNT OF ANY GIVEN PRODUCT.
Ex: In order to have more pizzas we must give up robots. The opportunity of pizzas is therefore robots.

OPPORTUNITY COST: The best alternative forgone. This takes into consideration all types of opportunity costs rather than just production costs. Ex. Study or go on a date

Implicit Costs: Resources that could have been used in the next best alternative. You could be taking team sports or marketing instead of A.P. Economics. You could take a nap tonight instead of studying.

Explicit Costs: These are the measurable costs. It costs $3 for a Big Mac. This is measurable.

Marginal means change.

AP Macro Notes Unit 4

Money has been around forever.
Barter system: Problem with Barter system is double coincidence of wants. You have to want what I have and vice versa. We would have to spend time searching for others to trade with. Huge waste of time!

Functions of Money:
1) Medium of Exchange: It must be able to be used to buy goods and services.
That way I do not have to trade Bonsai for hamburgers.

2) Measure of Value: It must be capable of being a measurement as to the relative worth of a good or service.
Which is worth more a Bonsai or a hamburger?

3) Store of Value: You can hold it without worrying about it spoiling.

Three definitions of money

M1 = Currency + Checkable Deposits

Currency: Coins and Paper Money
Coins are token money because the value of the metal is not worth what the actual coins represents.
Paper money is actually Federal Reserve Notes.
plus

Checkable Deposits: (the largest component of M1 (It constitutes around 70%))
Checking accounts are a way of transferring money from one account to another. They can be easily converted into liquid cash.

*** Notice that M1 must be in the hands of individuals. Not in the hands of the treasury or the banks. This avoids double counting money. (Your money is in your checking account but it is yours. It is counted as part of yours. It is not counted as part of the banks money.)

M2 = M1 + savings accounts + small time deposits + money market deposit accounts + money market mutual funds

Savings accounts: you can readily convert this to cash. (Sometimes called near money)

Time deposits: money that can only be gotten when they mature. (C.D.'s of less than $100,000...)

Money Market Deposit Accounts: you buy shares in a money market. This money is then used by the bank to make large loans. You get a larger rate of return.

Money Market Mutual Funds: This money us use to buy short-term securities such as T bills (treasury bills).

M3 = M1 + M2 + large time deposits

Large Time deposits: These are usually held by business.

For the most part M1 is a good definition of money. Other times we will use M2. Rarely will economist use M3 because it is so broad. No matter what the definition the models work.

Credit cards are not included because they do not represent money. Instead, they are short term loans from the creditor.

Unit 4 Lesson 2, Day 1

Equation of Exchange
MV = PQ
M = supply of money
V = velocity of money (number of times a year that a dollar is spent on final G & S.
P = price level (average price of each unit of output)
Q = physical volume of G & S produced.

MV is the amount spent by consumers This is the same as the total C + I + G + Xn
PQ is the amount received by sellers. This is the same as nominal GDP (current output at current prices)

What happens if M changes? When M increases you have to look to see if the economy is in full capacity. If it is not then Q increase. If it is then P increases.

One argument about V is that it is determined by people’s willingness to hold money in a non interest bearing form. If the interest rates go way up people are willing to hold less money. This means that the money they are holding must turn over quicker so V increases.


V is actually fairly stable.
Unit 4 Lesson 3 Days 2 and 3

Balance Sheet: a statement of assets and claims summarizing the financial position of a firm or bank at some point in time.

A balance sheet must always balance. Every asset is claimed by someone.

net worth: the claims of the owners against the firm’s assets

liabilities: claims of the non-owners.

Assets = net worth + liabilities

In the beginning people would not want to carry around large sums of gold. They would therefore bring the gold to goldsmiths who would issue them receipts. Eventually people found it easier to trade receipts rather than gold. They knew that they could get the gold if they wanted to. The receipt was backed by gold.

Soon the goldsmiths saw that more gold was deposited than taken out. They decided to issue receipts that was not backed by gold. They did this in the form of loans.

The fractional reserve system of banking was started. Only a fraction of the receipts were covered with gold.

The goldsmiths created money. Today the same thing occurs. Banks make loans based on an amount that the Federal Reserve requires them to keep in reserve.
legal reserve (reserve): an amount of funds equal to a specified percentage of its own deposit liabilities which a member bank must keep on deposit with the Federal Reserve Bank in its district or as vault cash.

reserve ratio: this is the specified percentage of its demand liabilities, which the commercial bank must keep as reserves.

Reserve ratio = banks required reserves / banks demand-deposit liabilities.

EX: 10% = 10,000/100,000

From here on we will for simplicity reasons assume a rate of 20%.
Notice the amount by which the banks actual reserves exceed its required reserves is called excess reserves.

actual reserves - required reserves = excess reserves.
110,000 - 20,000 = 90,000

**** It is very important that you understand this concept. You must be able to compute all of these numbers. It is the excess reserves that allow a bank to create money. ****

This is called the Fractional Reserve Banking System: A system in which depository institutions hold reserves that are less than the amount of total deposits.

The required reserves are not there for the banks to draw on if a run occurs. Instead the required reserves are there so that the Fed can control the amount of money the bank lends.

When the bank puts its reserves in the Fed what does this represent for the Fed? a liability for the Fed.

Lets look and see what happens if one of our banks customers writes a 50,000 dollar check. This check will go through another bank. This bank will credit the account of the person that our customer paid.

The other bank will now send the check to the Fed. (This actually happen electronically now.) The Fed will take this check and increase the other banks reserves by 50,000.

It will then take 50,000 out of our reserves. The check will then be sent to us. We will then take the money out of our customer’s account (reducing our demand deposit by 50,000 and reduce our reserves by the 50,000.

AP Macro

Welcome back, folks!

Make sure you have completed the handouts I gave you the week of finals (the ones on "what is money?", etc). We will begin Unit III this week!

Honors World History

Welcome back! This week we will be finishing up our castle projects and wrapping up our unit on Medieval Europe. Make sure you review previous notes and handouts!

Honors Economics Syllabus

Please see the August 6th, 2009 post on this blog for a copy of the course syllabus. Please print and complete with parent signature and bring to class by the end of the week. If you cannot print from home, Mr. Robinson will provide you with a printed copy. Please ask him.