2015 day 3
TRANSCRIPT
What could we conclude from yesterday’s organ donor/sale question?
1st Come, 1st Serve Auction Undecided0
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FW Summer Econ – Organ Allocation Issue
Go to computer lab today
What if….In our system:• Firms need households• Households need firms• They are interconnected
• 2 effects:• Govt raised sales tax
to 25%?• Govt decreased
environmental regulation
• Unemployment rate rose by 10%
• Dow Jones increases by 20 %
On your slate1. How much information will you miss if you
miss 1 day of a regular school day? 2. What if you miss 2 days?3. What if you miss 8 days?
“the margin”
• Additional• Ex: production, consumption, effort
Two volunteers
• Two Volunteers• Marginal utility
Two volunteers
• Two Volunteers• Law of diminishing
marginal returns • Eventually marginal
benefits will decrease
Movie Clips
• How do we see Diminishing Marginal Returns in each clip
• NY Coney Island hot dog eating contest• Squidward
Eventually…
Application to students?
Application to business?
Application to government?
Application to partiers
On your Slate
Write a specific example of Diminishing Marginal Returns from your life, using economic vocabulary
Review Biz Organizations
Which of the 3 business orgs would you use to start a…..
Which of the 3 business orgs would you use to start a…..
Which of the 3 business orgs would you use to start a…..
Which of the 3 business orgs would you use to start a…..
Tile setting
Which of the 3 business orgs would you use to start a…..
Which of the 3 business orgs would you use to start a…..
Which of the 3 business orgs would you use to start a…..
Quantitative Easing on back of quizWhy would an economist say it makes sense to pay $500 to fly to Los Angeles, when a person could drive for only $90?
On your slateThink of a day when you got a lot done. What were you doing? Why were you able to do it?
Experiment• 1 group draws
• 1 group draws
• 1 group draws
Graph Experiment
How could I model this?
Increase productivity?
Productivity• Quantity of output for each unit of input
• For example: • Mechanic can do 4 oil changes per hour• Each oil change requires $8 worth of filter & oil
• “At the margin” increases inProductivity
Another example? Hours studying? Working?
Draw and label 2 good PPFlabel impossible, efficient and inefficient
Increases in productivity• Causes ---------• #1 technology• Others:• Human capital• Cheaper inputs• Health• Globalization
Production Possibility PracticeWhat is the
opportunity cost of moving from A to B?
A
B
Production Possibility Practice
Production Possibility Practice
Production Possibility Practice
Production Possibility Practice
Production Possibility Practice
On your slates
3 reasons negative
In your groups• You are members of the
financial ministry of the country of Travistan
• Create a budget for FY 2015• Smog level 100 million particles per square inch Reducing pollution would
increase tourism and create thousands of new jobs
Travistan
Stock price article• Assignment with your partner, 1 sheet
1. What factors give stocks their value?2. What problems are created by a stock’s change in
price?3. How does this information change your view of the
stock market?4. Pick one of your stocks, what has happened to its
price in the last year? Why might that be misleading5. Write an activity Mr. Klein could use with this article
and its core concept.