12/07/16 Homework – Due on Friday

December 8, 2016

Copy and answer the questions below…

Chapter 14 – Taxes and Government Spending
Section 3 – Federal Spending

1. What is mandatory spending? What are the programs covered by mandatory spending?
2. What is discretionary spending? What programs are covered by discretionary spending?
3. Why is social security not a “means-tested” entitlement?
4. How old do you have to be to qualify for Medicare? How is Medicare different from Medicaid?
5. What is the most troubling problem of entitlement spending?
6. What is the biggest discretionary spending item? Why?
7. If you had to make budget cuts, which categories of federal spending would you lower? Why?

Economics Final Exam Review

December 6, 2016


Complete a set of detailed notes for all topics listed below.
Due on the day of the final exam for 50 points.

Important Topics:

1. entrepreneur
2. all factors of production (land, labor, capital)
3. efficient economy
4. law of demand, law of supply
5. shift of the demand curve
6. elasticity of demand
7. elasticity of supply
8. demand schedule
9. ceteris paribus
10. total revenue
11. characteristics of centrally planned economy and free market economy
12. mixed economy
13. traditional economy
14. Karl Marx
15. Adam Smith
16. Joseph Stalin
17. Vladmir Lenin
18. government subsidies
19. various types of monopolies
20. price discrimination
21. deregulation of industry (its cause and effect)
22. patent
23. effects of technology on the economy
24. cartel
25. M1 and M2 money
26. fiat money
27. financial intermediary
28. components of a bond
29. diversification
30. liquidity
31. capital deepening
32. distribution of income in the United States
33. Dow Jones Industrial Average and S&P 500 Index
34. GDP
35. income approach vs. expenditure approach
36. stock split
37. dividend
38. income stock
39. growth stock
40. common stock
41. phases of the business cycle (peak, contraction, trough, expansion)
42. Certificate of Deposit
43. mutual fund
44. characteristics and functions of money
45. inflation (cause and effect)
46. labor unions and what they do for workers
47. effects of a growing population on the economy
48. Medicare
49. inferior good vs. normal good
50. characteristics of the Chinese economy
51. opportunity cost
52. trade off
53. production possibilities frontier
54. scarcity
55. guns or butter

FYI: Interesting LA Times Article Regarding Workers Being Replaced by Machines

December 5, 2016

Warehouses promised lots of jobs, but robot workforce slows hiring


Warehouses promised lots of jobs, but robot workforce slows hiring

Automated machines and software have been taking up more and more space in the region’s warehouses, and taking o…

The Chapter 12 and 13 Test Will Occur on Thursday, December 8th, 2016

December 2, 2016

To review for your test…

Copy and answer questions #1-18 on page 352-353 to review Chapter 13.
This assignment is due on Wednesday, December 7th, 2016.

11/29/16 Homework

November 30, 2016

Complete 2 pages of Cornell notes for Chapter 13-1 from page 331-336.

Chapter 12, Section 2 and 3 Notes

November 17, 2016

Ch.12 Gross Domestic Product and Growth

Sec.2 Business Cycles

Factors that affect the business cycle:

More Business Investment

Economy is expanding, rise in demand for goods and services.
Additional jobs are created, GDP is increased.

Less Business Investment
Too much or enough expansion, contraction in economy, demand for product is dropping.
Workers are laid off, unemployment rate rises, and cause a recession which will lead to a decrease in GDP.

Rise in Interest Rate
• To slow down the growth of the economy.
• To curb consumer spending.
• Consumers are less likely to purchase “big ticket” items.
• It causes the “contraction” in the economy.
• Businesses will decrease their investment and lead to reduced output and employment.

Drop in Interest Rate
• To encourage consumers to spend money.
• To spurt the growth of the economy.
• Consumers will purchase more cars and houses.
• Businesses will be more likely to expand and invest.

Rise in Consumer Expectations
Expectation of a rapidly growing and robust economy.
A higher aggregate demand is created thus increase the GDP.

Fall in Consumer Expectations
• Fear of a weak economy
• Consumers start to save money and cause a contraction in the economy.
• Decrease in GDP.

Positive External Shocks
• Discovery of large oil depos
• its.
• Perfect weather for agriculture
• Increase in GDP.
• Prices drop for most goods.
• Cheaper production costs.

Negative External Shocks
• Wars, floods, natural disasters, terrorist attacks, interruption in trade relations
• Disrupt the sales of goods.
• Reduction in GDP.
• Cause prices to spike.

Interpret this statement:

“Consumer expectations often become self-fulfilling prophecies, creating the very outcome that consumers fear.”

If consumers are worried about a recession, they will hold back on making major purchases and start saving money. If all consumers cut back on their spending drastically, the economy will go into a contraction as a result of the consumers’ spending behavior.

Chapter 12
Section 3: Economic Growth

How can the following factors affect economic growth of a country?

1. Capital (Physical and Human) deepening
• Both factors should increase the rate of productivity and also increase the equilibrium wage (which will add to the economic growth).
2. Savings and Investment
• Higher savings leads to higher investment. Therefore, businesses will invest in physical and human capital to increase the GDP.
3. Population Growth
• If the population grows faster than the GDP, the economy will suffer due to fewer resources available per person.
4. Government
• The government can change the tax rate to affect economic growth. If taxes are too high, then there will be less money available to invest. On the other hand, lower tax rate will stimulate economic growth by putting more money in consumers’ pockets and encourage more business investment.
5. Foreign trade
• A trade deficit could hurt the economy, unless the deficit is caused by long-term investment to promote economic growth.
6. Technological progress
• This usually increases the efficiency of workers and factories by producing more output without using more input.

“My Stock Portfolio” Google Slides – Due on Monday, November 28, 2016

November 17, 2016

A. Cover slide w/ the title “Our Stock Portfolio”

• Include illustrations, names, date, and period on the cover slide.

B. Portfolio Valuation Section (make a chart)
• Name of Companies
• Symbol
• Date of Purchase : 10/14/16
• Purchase Price
• Number of Shares
• The closing price as of 11/25/16
• Total stock value for each company as of 11/25/16
• Total Portfolio Value = Total Value of Stock + Cash

C. Company Information on the Best and Worst Performing Companies (at least 4 slides per company)
• Name / Logo
• Brief history/information of the company
• Why did I buy the stock?
• Why did this stock perform the way it did?
Write a Jane Schaffer paragraph citing two examples from the news to support your conclusion. Remember to share your news source with us.
• Daily price record chart (date and closing price).
• Graph demonstrating the fluctuation of the stock from the observation period (from 10/14/16 – 11/25/2016).

D. Reflection
If I were to invest $10,000 of my own money…
a. What kind of companies would I invest in?
b. What would I do differently the second time around?
c. What have I learned based on this experience?

• Points awarded: presentation (100 points)
• Extra credit will be offered for any relevant and appropriate multimedia material.
• Use the Internet for reference purposes only, do not plagiarize. I will be checking each report for evidence of plagiarism.
• MKHS cheating policy will be enforced.
• The presentation is due on Monday, 11/28/2016

Tips for Google Slides

• Use size 24 font as the minimum.
• Don’t copy and paste.
• Eliminate any spelling and grammatical errors, a point will be deducted for every error present in the presentation.
• Learn the pronunciation of every word. You have control of the content in your presentation, so do not include a word that you cannot enunciate properly.
• Use text that provides contrast to the background.
• Use appropriate pictures for EVERY slide.
• Use bullets to break up long paragraphs.
• Do not copy and paste
• Share your unlocked presentation with me by sending to ko_charles@ausd.us and remember to include your period, name and topic in the subject field.