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