Economic Goals; Role of Government; Economic Growth and Productivity (Blog #4)

1.  How are the economic goals of freedom, securitiy, efficiency, equity, stability, and economic growth achieved in a market economy? 

* The economic goals are achieved in a market economy because the efficiency provides more goods and services for society without using more resources. Equity was established upon basis equal opportunity for all people regardless of each person's income level. Freedom is the right to work or be unemployed, alsothe  freedom to produce, trade and or consume any goods and services. Security is a condition of having stable income or other resources to support a standard of living now and in the foreseeable future. Growth is a process by which nation's wealth increases over time. Stability is the absence of a certain fluctuation in the economy.

2.  Why has the role of government in the economy increased dramatically since the 1880s?

* The role of the government increased because they decided to go by the Economic functions of Government.. which are maintaining legal and social framework, providing public goods and services, maintain competition, redistribute income, correcting for externalities, and stabilize the economy

3.  Write an argument that supports or opposes the statement in the visual below that says "deregulation won't work because people are greedy"  ?

* I feel that the statement in the visual is TRUE because Deregulation meaning no government control would cause people 'run' crazy around the world (people will take and take until theres no more to take), indivduals wouldn't know how to handle that kind of control.

4.  Explain why the government provides public goods and services?  Why are these public goods and services NOT provided by the private sector?  (Please include a discussion on non-rivalrous and non-excludable goods)

* Non-rivalry means that consumption of the good by one individual does not reduce availabity of the good for consumption by others.
 Non-excludability that no one can be effectively excluded from using the good.
The government collects taxes from individuals and firms to pay for public goods, They aren't provided for private sectors because the goods are used for the PUBLIC.

5.  What are the 6 functions of government in a market economy (provide an example of how the government fulfills each of these 6 functions)?

* Maintaining Legal & Social Framework - Creating Laws
Providing Public Goods &  Services - Providing National Defense
Maintaining Competition & Protecting profits - Regulate natural monopolies
Redistributing Income - Medicaid, Medcare
Correcting for Externalities - Taxes to reduce negative externalities such as environmental pollution
Stabilizing the Economy - Uses government budgets to Reduce unemployment

6. Describe the relationship that inputs and outputs have on productivity?

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7.  How do investments in capital goods, technology, human capital and, training and educating workers, improve productivity and economic growth?
 
*

8.  Refer to the chart below and explain the cause of the decrease in the output, productivity and employment in manufacturing in the United States.  What can the United States do to reverse this downward trend in manufacturing?

* In order to reverse the trend in manufacturing the U.S will most likely have to increase the employment hours so the output can increase.

Microeconomics - Standards Based Blog M11 & M12

       Microeconomics
1.) Using the typical 'Facebook' lingo, write a definition for microeconomics ad then provide a standard English translation for your 'Facebook' definition.

* Facebook Lingo: Microeconomics is wen u study economics but u look at it more in dept. English Terms: Microeconomics is the study of the market system (economics) on a small scale.

Title:  Role of Money - M11

1.  Using what you learned about the three functions of money, explain how 'play money' differs from 'real' money?

* Play money doesn't have any value in the real world and real money has a value and purpose in the real world.

2.  Money has no actual value other than the value we attach to it. The barter system would still be practiced today if the participants did not agree to set a value on a piece of printed paper that represented the value of the goods and services they had to offer.  What would you accept in place of money, if someone wanted to 'buy' your most prized material possession? 

* I would accept an item that has equal or more value to my prized possession. For example if someone wanted to by my laptop I would 'trade' it for a blackberry phone or a laptop with equal value.

Circular Flow Model - M11

1.  What does a circular flow model tell us?

* It tells us that three basic elements of the economy will work and interact together to ensure that needs and wants are provided for.

2.  What is the role of households in the three sector circular flow model?

*The households pay taxes and provide labor to the government, they also purchase goods and services from businesses. They are called the factor market

3.  What is the role of businesses in the three sector circular flow model?

* Businesses also called Product Market.

4.  What is the role of government in the three sector circular flow model?

*The government receives money from the households (taxes), They also collect money from the businesses through corporate income taxes. The government purchases goods and services and the resources from both the households and the businesses.

5.  What role do households have in the factors or resource market (inputs)?

* The households are the four factors of production: Land, Labor, Capital goods, and Entrepreneurship

Title:  Law of Demand and Law of Supply - M12

1.  For each event described below, explain what happens to either the demand or supply curve. (increase/decrease?  Shifts left or right?)

(a) What happens to the demand for chicken if concerns about mad cow disease lead to widespread euthanizing of  cows on U.S. cattle farms?

* The demand for chicken for would increase. Which cause the curve to shift to left

(b) What happens to the supply of orange juice if Florida is hit with very severe weather?

*The supply would decrease and the curve would shift to the right.

(c) In the market for coffee, severe global weather systems destroy 30% of the coffee bean crop.

* The supply of the coffee bean would decrease which would cause the curve to shift to the right.

(d) In the market for cereal, if the price of cardboard material used to package cereal increases.

* The supply of the cardboard would increase which would cause the supply curve to shift to the left.

2. For each part below,  EXPLAIN what happens to equilibrium quantity and price (increase or decrease?).

a)  In the market for doughnuts, if they were found to be a major contributor to high cholesterol in adults.

* The equilibrium quantity would increase because mosts adults would stop buying the doughnuts because they contribute to high cholestrol.

b)  In the market for doughnuts, if widespread unemployment continues.

*The supply and quantity would most likely go down due to the lack of workers which would effect the supply (They would make less of the product)

c) In the market for doughnuts, if Krispy Kreme introduces a new whole wheat 'low-calorie' doughnut.

*The equilibrium quanitity would decrease because many consumers will buy the new product.

3.  What are two factors that can change the quantity demanded?  Provide an example for each.

*Substitutes many be a factor for example if you like fruity pebbles but the company rises the price you would have to switch to Fruit Loops (your sub.) which is sold at a lower price than Fruity Pebbles.. Which will have that  company have more Fruity pebbles in stock due to lack of sells.
Also a change in consumer income for example if a person recently lost there job or has a lower paying job they are shopping on a budget, so if you are selling a product for $5 the person might not buy your product if the store has a similar product which is cheaper.

4.  What are two factors that can change the quantity supplied.  Provide an example for each.

*An increase in technology.. for example if you own a company and you buy new machines for your factory the production of your product would increase which will cause the supply to increase.
An Change in industry can also change the quantity supply for example you own a clothing line and your clothes are being sold at a few clothing stores, and later u decide to introduce your line to more store (most likely big name stores Macy's, Jcpenny, etc)



Please include at least 2 relevant visuals

This is a picture that shows demand over powering/ exceeding supply.



picture of a simple supply curve that has been shift.



How different economic systems anwser the three basic economic question (Standard SSEF4)

1.) What are the three basic economic questions that every society (Economic System) must answer?

* What to produce? How to produce? and For whom to produce?

2.) What is an economic system? And what are four types of economic systems? Give one example of each.

* An economic system is a system of an economy. The 4 types of economic systems are: Market- U.S or any capitalist economy , Command- N. Korea and Cuba any economy with dictatorship, Traditional- Tribes in Africa or any substance economy, and Mixed- U.S most modern economies.

3.) Write a detailed explanation of how each of the four economic systems answers the three basic economic questions.

* Each economic system has their own group that answers the 3 basic questions. In the Market economy the buyers and sellers answer the basic questions, In the Command economy the government (only) answers the questions, and In the Traditional economy the answers are based on custom and beliefs and are determined by the members of society.

4.) How does the United States reflect a combination of economic systems?

*  The U.S has many different cultures throughout the country, No matter where you go in the U.S the government has some kind of control for example gas prices, taxes, etc. But there is also the traditional economies that have there way of living without government influence. Lastly the Market economy which is just the little self owned establishments that are found throughout the country ( Korean Shops, Jamaican Shops, etc.)

5.) The Inuit tribe in Alaska teach their children that they must always do their best at every task. The child begins by observing the adults doing tasks. When the time comes for the child to do the task, the task is first divided into smaller tasks. The adults praise each stage of the task the child successfully completes. What economic system is used by the Inuit? Explain.

*Traditional, because this way of living has been passed on throughout that tribe and with knowing that most if not all tribes way of life are based on customs and beliefs I would chose traditional as the best answer.

6.) How do the market, command, and traditional economics systems compare and contrast with each other in terms of profit motive, private ownership, consumer sovereignty, competition, and government regulation?

* All of the different types of economies are alike in a way because when it comes to profit motive all of the economic groups want to make money and the main reason the economic system is to make a profit. Private ownership only exist in the market economy and a little bit in a traditional economy , but and a command economy the government controls everything.

Production Possiblities Curve; Rational Decision Making; and Specialization (Standards EF2 & EF3)

1.) If you owned a business, what would a production possibilities curve tell you? Be specific. What are two factors that could cause your production possibilities curve to shift outward??

*If I owned a business I would own a clothing line. A PPC would tell me what items I should make more of; for example if was making dresses and skirts and I could make more skirts efficiently in a hour than dresses the PPC tells me that I should really focus on making skirts.
 Two factors that could cause my PPC to shift outward is if I hire more employees and lowering my prices.

2.) What is the best way to determine whether or not we are making a rational economic decision?

* The best way to determine whether or not your making a ration decision is to make a rational decision making model to compare the marginal benefits and the marginal costs of an action. (6 step process)

3.) Why do companies choose to specialize and trade? What would happen if companies did not choose to specialize?

* Companies choose to specialize and trade because some companies can make products faster and more effiecent then other companies. If companies chose not to specialize there will more likely be a waiting period for product because everything will just slow down and some companies will defintely losee there businesses.

4.) Include two relevant visuals ( based on standards) with captions that explain their signaficance to the standard.

This picture is of differeent labels that you might see on many products representing TRADE.

This is a picture of a trade route used throughout the world.

5.) How do you feel about your knowledge of this standard? What are two questions that you have about this standard?

* With this standard I feel extremely lost I really didin't catch on to this standard like the previous one. Questions that I have are there any study skills or tips you can give me to help me understand future standards just in case?

EF1 Limited Resources and Unlimited Wants and Needs

1.) How does scarcity influence the choices you make about how you spend your money?

* Scarcity of money and goods influence the way I spend my money in a tremendous way because there were many situations where I had to make the decision to trade-off in order to enjoy or get what I want or need.

•  Give a specific example of a trade-off that you had to make.

* Recently I went to the mall and I had to chose between getting a new pair of shoes or buying a new phone.

• What was the opportunity cost of your decision? How did you make your decision?

* I missed out on getting a phone that was way better than the one I already had. I made the decision to get the shoes because I knew that getting new shoes for school was way more important then getting a phone.

• Afterwards, how did you feel about your choices?

* I felt that I made the right choice because I knew that while making my decision I had to think about whats more important and what I NEEDED instead of what I WANTED.

2.) How do business owners influence each of these factors of production?

* The business owners are the people who are in charge of everyone else. Without the business owners (Entrepreneur) the other three factors of production wouldn't exist because the business owner buys the land for the business, they also hire the laborers, and purchases the captial good for there business.

• What is a risk and reward that business owners might incur with each of the four factors of productions?

* RISK: Having to be financially ready, hiring employees that might not do work or come to work, and Has to be able to take charge and be/ become a Leader.
REWARD: Bieng your own boss, Setting your own salary, and Setting your own hours.

3.) Do you see yourself more as an individual that will supply labor or as an entrepreneur who makes decisions about the use of labor? Explain how you reached this conclusion.

* I am a very dependable, responsible person thats why I woouldn choose to be an entrepreneur because Im known to be a leader.

4.) Include two relevant visuals (based on standards) with captions that explain their significance to the standard.

This picture shows icons that represents the factors of production.

This is Donald Trump one of the most famous Entrpreneurs in America.

5.) How do you feel about your knowledge of this standard? What are 2 questions that you have about this standard?

* After reviewing the contents of this standard I feel very comfortable and I think if I had a test I would pass. I don't have any questions about this standard.