Election Videos

https://drive.google.com/file/d/0BwOR-FAEH0fbTHA1RG9BQW01TFFETUhvNF9xR3ItaWh1NXY0/view?usp=sharing

Every vote counts... or does it?

With the Presidential election looming in the near future, people are gearing up to exercise their all-powerful ability to vote.  Citizens have been made to believe that each and every vote is important in determining the success of our future.  While voting is an essential part of a functioning democracy, there are some economists that feel that the act of voting is the single greatest waste of time.

http://www.nytimes.com/2005/11/06/magazine/why-vote.html

http://mentalfloss.com/article/59873/10-elections-decided-one-vote-or-less

http://www.nytimes.com/2016/04/25/opinion/should-everybody-vote.html

http://reason.com/archives/2012/10/03/your-vote-doesnt-count/ 


As you read through the articles in the above links, you should answer the following questions:

1) Explain two reasons why you believe that people feel so strongly about voting.

2) Explain the main conclusion that is reached in the article "Should everybody vote?"

3) Explain 3 reasons why economists suggest that people should NOT vote.

4) After reading the articles, do you believe that every citizen of voting age should vote?  Why or why not?

AP Papers for Panel Session C

Below are the links for the Panel Session C papers.  Remember to write 3 questions for each paper and make sure I get those index cards tomorrow morning so you can get credit.

Also, I don't subscribe to the old adage "There is no such thing as a stupid question" so make sure you put thought into your questions!

Due to technical difficulties, the HSE paper (mscience) is not available so if you haven't read that paper yet, don't worry about it.  You will not be penalized.


https://drive.google.com/file/d/0BwOR-FAEH0fbTTNTc1NhV09rb0U/view?usp=sharing

https://drive.google.com/file/d/0B3INxzWCq5z0cmdBb3RHZ0U5RjQ/view?usp=sharing

GDP Deflator vs. CPI

https://drive.google.com/file/d/0B9GG2MQzguFQcDhhUzN5LXJfdjg/view?usp=sharing

Does Uber undestand the laws of Supply and Demand?

Many of us have been, flailing our arms around hoping that a cab will stop to pick us up.  Maybe if I walk down one more avenue.  Maybe if we cross the street.  Catching a cab can be an exercise in futility.  Even worse is the experience inside the cab as your driver attempts to get you from point A to point B while trying to cut off as many cars as possible.  It is almost as if every driver is competing for "most aggressive cabbie" and they are all winning.

Wouldn't it be great if there was an alternative?  A type of car service that you can arrange on your phone and you could rate the experience?  Enter Uber.  But some complain that Uber is Unnecessary.  Others argue that their pricing system is unfair, or that it takes advantage of riders.  Perhaps Uber simply understands the laws of Supply and Demand.  Read the articles that follow and answer the questions.

http://www.economist.com/blogs/graphicdetail/2015/08/taxis-v-uber

http://www.economist.com/news/finance-and-economics/21599766-microeconomics-ubers-attempt-revolutionise-taxi-markets-pricing-surge

http://www.cnet.com/news/detest-ubers-surge-pricing-some-drivers-dont-like-it-either/

http://qz.com/505031/uber-got-two-economics-phds-to-explain-how-supply-and-demand-works/

https://www.washingtonpost.com/news/the-switch/wp/2015/05/19/no-uber-drivers-cant-game-the-surge-pricing-system-the-way-one-driver-claims/

Discussion Questions:

1)  Explain Uber's "Surge Pricing."  Is this form of Price Discrimination a good thing or a bad thing?

2) Do you think politicians should limit what Uber can charge?  Explain one argument in favor of capping Uber fees.

3) How has the expansion of Uber impacted the Taxi market?

Review Videos

Just in case you haven't been paying attention all year, watch the following videos for a crash course in AP Macroeconomics.

Practice Exam Answers

Below are links to the answers to the various Practice Exams that you have completed.  Look over the answers and come to class with questions.

2010 MC
https://drive.google.com/file/d/0B9GG2MQzguFQdVBydWxOM0dGa00/view?usp=sharing


(Explanations Powerpoint, although the questions are out of order, pretty good intro review)
https://drive.google.com/file/d/0B9GG2MQzguFQRmhMcl9jbUhxVTQ/view?usp=sharing

2005 MC
https://drive.google.com/file/d/0B9GG2MQzguFQWlltVzg4T2tCRUE/view?usp=sharing


Take Home Practice Test
https://drive.google.com/file/d/0B9GG2MQzguFQa1JrOVpidkRJbnM/view?usp=sharing

Comparative Advantage Practice

Here is the link to some practice questions for the quiz tomorrow.  The answers will be uploaded shortly.

https://drive.google.com/file/d/0B9GG2MQzguFQeTFOSy11VFdYVDA/view?usp=sharing

Here are the answers.  I will answer any questions tomorrow in extra help before school.  Good Luck!

https://drive.google.com/file/d/0B9GG2MQzguFQV3hVcXZxSUVQNXM/view?usp=sharing

Loanable Funds are REALly Fun!

In class we talked about the Market for Loanable Funds.   The links below provide additional information about the graphs that might be useful on a pop quiz.

http://welkerswikinomics.com/blog/2012/05/08/loanable-funds-vs-money-market-whats-the-difference/

 http://apcentral.collegeboard.com/apc/members/courses/teachers_corner/49477.html

AD/AS Graphing HW Answers

Here are the solutions to the AD/AS review sheet from class today.  The question numbers are different but the questions themselves are the same.  Send me an email or tweet if you have specific questions.  Good luck with your studying!

 
https://drive.google.com/file/d/0B9GG2MQzguFQX0tPZHdWdWFNSWc/view?usp=sharing

https://drive.google.com/file/d/0B9GG2MQzguFQVERfc19NLVFxeUE/view?usp=sharing

Privatize Social Security?

Social Security is running out. This is a fact echoed by the Social Security Administration.  Projections indicate that by 2033, the fund will be empty and workers paying into the system will provide enough to pay for 75% of promised benefits. With such a significant problem on the horizon, it is strange that so few politicians are talking about the issue, and even fewer are offering solutions.

A common suggestion to "fix" the looming problem of Social Security insolvency is to Privatize the entire system.  This proposal would mean significant changes to the "safety net" that millions of Americans rely on to survive.

Discussion Questions:

1. What does "privatizing Social Security" actually mean?
2. Explain the strongest argument for privatizing Social Security.
3. Explain the strongest argument against privatizing Social Security.
4. Where do you stand on the issue?  Explain your perspective.

Use the following links in addition to others that you can find to help build your arguments.

http://socialsecurity.procon.org/

http://www.brookings.edu/research/papers/1997/03/saving-burtless

http://www.cato.org/publications/social-security-choice-paper/privatizing-social-security-big-boost-poor

http://www.cato.org/research/social-security

https://www.stlouisfed.org/publications/cb/articles/?id=1578

Is Technology Ruining Society

Human beings have 3 basic requirements for survival: food, clothing, and shelter. (yes and air) Most people will argue that this list is incomplete without including Cellular phone.  While it is true that the cell phone is the last thing people look at before going to sleep and the first thing people look at when they wake up, it was only about 14 years ago when a cell phone was seen as a luxury instead of a necessity.  Imagine a time when people had to go long periods of time without knowing the name of that actor in that movie, or when people had to actually look at a map (or visit a local AAA) before a long road trip.  We have come a long way as a people, and the rate at which technology is changing our lives is increasing exponentially.  With technology developers so focused on what they can do, perhaps it is time to start questioning what they should do.  Is technology always a good thing?  Are we still progressing or is technology actually ruining society?

In order to develop your argument, you should read each of the articles below.  In addition, you should research the topic further in order to defend your position on whether technology is helping or hurting society.  You will then answer the following questions:

1) Explain one way in which technology has been positive for society.
2) Explain one way in which technology has been negative for society.
3) Do you believe that technology is more beneficial or damaging for young people?  Explain.
4) Overall, do you believe that technology is ruining society?  Why or why not?

http://www.inquisitr.com/1468612/steve-jobs-didnt-let-his-kids-use-iphones-or-ipads-heres-why/
http://ideas.time.com/2012/11/29/how-to-use-technology-to-make-you-smarter/
http://www.psychologytoday.com/blog/mr-personality/201305/is-technology-making-us-stupid-and-smarter
http://www.cbsnews.com/news/how-smart-technology-can-make-us-dumb/
http://news.usc.edu/54256/the-benefits-and-drawbacks-of-online-technology/
http://www.huffingtonpost.com/steve-nelson/too-much-technology-is-bad-for-the-brain_b_5448015.html
http://www.usnews.com/news/blogs/data-mine/2014/02/27/is-the-internet-bad-for-society-and-relationships
http://www.huffingtonpost.com/shelly-palmer/technology-good-or-bad_b_4981309.html
http://news.essilorusa.com/stories/detail/children-and-technology-the-good-the-bad-and-the-ugly

What do All-You-Can-Eat Buffets and Health Insurance have in common?

As somebody who loves a good (and sometimes bad)  all-you-can-eat buffet, I consider myself somewhat of an expert on the subject.  I even considered majoring in "Chinese Buffet" while in college.  Sadly, there is little demand for a buffet expert.  I always wondered how buffets actually make money.  It turns out that many economists have asked the same question.

Real the article below about Bill Wisth and the economics of all-you-can eat buffets, watch the video, and then answer the questions that follow.

Use the internet to find another article about the Economics of all-you-can-eat buffets in order to answer the second question.  Be sure to include the webpage link at the end of your response.  You may have to read multiple articles before fully answering the question.

http://www.forbes.com/sites/modeledbehavior/2012/05/23/the-economics-of-all-you-can-eat-buffets/
https://www.youtube.com/watch?v=czq_QIUQIRY


Discussion questions:

1. Explain the concept of adverse selection and how it relates to the author's argument about all-you-can-eat buffets and health insurance?  Why shouldn't either exist?
2. How do all-you-can-eat buffets actually make a profit?  Be sure to use the terms marginal cost and marginal benefit in your analysis.

Hayek vs. Keynes 2014

Chocolate vs. Vanilla. Godfather vs. Godfather 2. Left Twix vs. Right Twix. Superman vs. Batman. Like so many other debates throughout history, the Hayek vs. Keynes battle continues to be fought within Government and Economic circles alike.

Keynes' ideas have become the dogma in recent years, but do you believe the pendulum will swing back towards Hayek's free markets and limited government in the foreseeable future?  Has society become too reliant on government support to ever allow free markets to work again?  Which Economist has the better argument about the role of Government in the economy?

Where do you stand on the issue?  What are the best reasons to support your side? Identify the main flaws in the opposing argument. 

Check out the articles below as you develop your arguments.

http://welkerswikinomics.com/blog/2011/10/31/keynes-versus-hayek-101-the-debate-continues/

http://www.soundmoneyproject.org/?p=2085

http://www.reuters.com/subjects/keynes-hayek - Watch the actual Debate!


And for those who appreciate Audio and Visual Awesomeness...


Keynes vs. Hayek: Fear the Boom and Bust
Keynes vs. Hayek: Round 2... Fight of the Century

1995 and 2000 Macro Answers

Here are the answers to the 1995 and 2000 AP Macro Exams.  Check them over and come to class with questions.

1995 Answers with Explanations

2000 Answers with Explanations

To trade or not to trade...

In class, we discussed the numerous methods in which trade barriers are implemented.  To what extent do trade barriers contribute to or hinder economic growth?  You are to conduct further research on the issue of trade barriers vs. free trade before responding to the questions below. In addition to explaining your point of view, please include a link to a website that supports your argument.

1. Do trade barriers help or hinder economic growth?
2. Use one of the arguments from the textbook to make the case for or against protectionism.
3. Should politics play a role in the trade barriers vs. free trade discussion?  Explain.

Time to Legalize Pot?

As the Federal Government and State Governments around the country seek additional sources of revenue, a decades-long debate has become the apparent panacea... Marijuana.  No our elected officials are not smoking pot as they debate fiscal issues (hopefully not).  Many are considering the legalization of pot due to the various Economic benefits it can provide.  Are these just the senseless ramblings of "stoners," or is there legitimate Economic rationale for the legalization of pot.

http://freakonomics.com/2014/01/10/who-does-marijuana-legalization-hurt/

http://www.forbes.com/2005/06/02/cz_qh_0602pot.html

http://www.economist.com/news/leaders/21593455-how-tax-and-regulate-marijuana-bongs-and-bureaucrats

http://www.huffingtonpost.com/ranjit-dighe/legalize-marijuana-economic-argument_b_4695023.html

Where do you stand on the issue?  Should marijuana be legalized?  Read the 4 articles linked above and use them to answer the following questions.

1. Explain the strongest argument in favor of legalizing marijuana?
2. Explain the strongest argument against the legalization of marijuana? 
3. Why does Milton Friedman think marijuana should be legalized?
4. Where do you stand on the issue?  Defend your position and be sure to include relevant arguments cited within the articles.  You may also provide additional arguments that are not discussed in the included links.

The Debt Ceiling

Like Bill Murray reliving Groundhog Day over and over again, it seems that the Debt Ceiling debate has once again returned to rear its ugly head.  It seems like only last year that congress settled the dispute over the growing government debt... oh wait... it was last year.  Unfortunatly, the legal debt limit is fast approaching and congress must once again decide how to deal with the problem.  As is ususally the case with terrible problems that could potentially ruin the United States as we know it, there is no clear-cut solution.  Republicans and Democrats view the Debt Ceiling (and those to blame for it) very differently.

Read through the articles below and answer the questions that follow.


http://www.treasury.gov/initiatives/pages/debtlimit.aspx
http://online.wsj.com/article/SB10001424052702303796404579097013297326356.html
http://www.nytimes.com/2013/09/27/us/politics/house-gop-leaders-list-conditions-for-raising-debt-ceiling.html?_r=0
http://tv.msnbc.com/2013/09/25/raise-debt-limit-before-october-17-or-risk-default-treasury-warns/
http://www.nbcnews.com/business/warren-buffett-debt-ceiling-fight-would-be-damn-dumb-4B11210658

1. What is the Debt Ceiling, and what are the dangers if a solution is not reached.
2. How do Republicans want to deal with the Debt Ceiling?  How about Democrats?
3. Which political party do you believe has the better view of the Debt Ceiling?  Explain.

Hayek vs. Keynes 2013

 

 

"To act on the belief that we possess the knowledge and the power which enable us to shape the processes of society entirely to our liking, knowledge which in fact we do not possess, is likely to make us do much harm."

                                                          -F.A. Hayek

"Capitalism is the astounding belief that the most wickedest of men will do the most wickedest of things for the greatest good of everyone."

                                                       -John Maynard Keynes

Who would have thought that the ideas of these two economists would still be relevant over 100 years after ther they were born?  Furthermore the central arguments are still being discussed today on Television and in the newspapers.  What exactly is the role of government: a dangerous servant or a fearful master?  Should markets drive the economy, or should government drive the markets? 

Where do you stand on the issue?  What are the best reasons to support your side? Identify the main flaws in the opposing argument.  In addition to posting your opinion, you will also be responding to one of your classmates' posts.

Check out the articles below as you develop your arguments.

http://welkerswikinomics.com/blog/2011/10/31/keynes-versus-hayek-101-the-debate-continues/

http://www.soundmoneyproject.org/?p=2085

http://www.reuters.com/subjects/keynes-hayek - Watch the Debate!

http://online.wsj.com/article/SB10001424052748704738404575347300609199056.html



                       

Trade Barriers Debate

First off, I hope I don't get sued for using Gandalf on my blog.  In class, we discussed the numerous arguments for and against trade barriers and free trade.  We all know how Gandalf feels about free trade, but where do you stand?  To what extent do trade barriers contribute to or hinder economic growth?  I would like you to conduct further research on the issue of trade barriers vs. free trade before answering the question.  In addition to explaining your point of view, please include a link to a website that supports your argument.