Chocolate Bars vs. Raisins

Your task is to reflect on the trading activity conducted in class. As you analyze the data, you should prepare answers to the following questions. Be sure to explain each answer and be ready to discuss on Monday.


1. Under free trade, which country produced more chocolate bars? Which country produced more raisins? Why?
2. How did banning imported raisins in country A affect the amount of each good that country A produced? How did it affect the amount of each good produced in country B?
3. How did banning raisin imports into country A affect total world production of each good?
4. How did the import ban affect the number of consumers in country A who were able to buy both goods? How did it affect the number of consumers in country B who were able to buy both goods?
5. Imagine that you are a worker in country A who only knows how to make raisins. Would you support lifting the ban on the importation of goods from country B to allow free trade?

Keynes vs. Hayek

Commanding Heights: The Battle of Ideas

Who is right... you decide.

Part 1
Part 2
Part 3
Part 4
Part 5

"Fear the Boom and Bust" Rap Video

One Red Paper Clip

What would life be like without a standard currency? Would the barter system actually work in our society? Check out the story of Kyle McDonald, a man with a red paper clip and a dream.

http://www.msnbc.msn.com/id/12353171/ns/technology_and_science-tech_and_gadgets//

The story does not end there though... check out the blog below to read what else Kyle was able to get with his bartering abilities. Be prepared to discuss how Kyle was able to get his house.

http://oneredpaperclip.blogspot.com/

Should we worry about the National Debt?

Many argue that the National Debt is growing too large that the United States will eventually be crushed under the weight of its own spending. Others feel that the debt is an acceptable and even necessary evil.

Below are two websites that might provide insight into the two sides of the issue.

http://welkerswikinomics.com/blog/2008/06/13/the-us-national-debt-level-is-the-sky-really-falling/


http://www.globalissues.org/article/29/causes-of-the-debt-crisis



Be sure to check out both sights before responding to the following questions:

1. Exactly who or what is responsible for the growing U.S. National Debt?
2. Is the debt a problem that we need to address immediately or is the debt a natural occurrence in our economic system.

Will The Invisible Hand Cut Carbon Emissions?

http://www.economist.com/world/britain/displayStory.cfm?story_id=14649058

"Can liberalised energy markets cut carbon emissions? Britain is starting to doubt it." Many are beginning to question whether an unregulated energy market can lead to a reduction in carbon emissions. Will market forces lead to an eco-friendly future? Think about the following questions as you respond to the article above.

1. Should the government play a role in determining how energy/resources are used? What should that role be?
2. How can the ideas expressed in this article be related to topics such as why many people don't recycle?
3. Is capitalism bad for the environment?

Living Wage Calculator

http://www.livingwage.geog.psu.edu/

"In many American communities, families working in low-wage jobs make insufficient income to live locally given the local cost of living. Recently, in a number of high-cost communities, community organizers and citizens have successfully argued that the prevailing wage offered by the public sector and key businesses should reflect a wage rate required to meet minimum standards of living. Therefore we have developed a living wage calculator to estimate the cost of living in your community or region. The calculator lists typical expenses, the living wage and typical wages for the selected location."

Market For Loanable Funds

The following links provide good information about the Market For Loanable Funds.

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

http://welkerswikinomics.com/blog/category/loanable-funds-market/

Check out this SlideShare Presentation:

Loanable funds