Chapter 15 Fiscal Policy

Read the Profile of John Maynard Keynes  (402) 
1. Before Keynes what did most economists think the role of the government should be?   How did Keynes change this role?   Why are Keynes' views controversial today?

15(1) Understanding Fiscal Policy (387)
2. Look at 15.1 (388) What is the role of the OMB (Office of Management and Budget)? Why do you think Congress has a CBO (Congressional Budget Office)?
3.  Look at 15.2 (389) What happens to aggregate demand when the government increases its spending? 
4. Look at 15.3 (390)  How might cutting taxes have a similar effect to government spending?
5. Read the Global Connections (392) what happened in Japan when it tried an expansionary fiscal policy?  Why not?
Answer questions #1-6 on page 393.  Odd/Even

15(2) Fiscal Policy Options
Define :
classical economics
Keynesian economics
supply-side economics
multiplier effect
automatic stabilizer
productive capacity
What is pictured on page 397?  Why?
Answer questions 5+6 on page 401

15(3) Budget Deficits and National Debt
What is the difference between national debt and national deficit?
1. Look at the chart 15.9 (404)  What affect did the Bush (2002-2009 budgets) tax cuts have on the annual budget?
2. Look at 15.10 (406)  what is the point of the chart? 
3.  Look at 15.11 (407)  What is crowding out?
4. Look at fast fact (407) What would be a problem with a federal balanced budget amendment?
Answer question 4 on page 408.

Chapter 13

13(1) Unemployment
Identify  and explain in your own words the key terms (331)
unemployment  rate
Frictional, seasonal, structural, cyclical unemployment
Full employment
discouraged worker
Answer  Global connections question on page 335.
Questions 1-6 (odd/even) page 336

13(2) Inflation
Identify the key terms (339)
inflation vs. deflation
price index (CPI, PPI)
core inflation rate vs. inflatiion rate
Hyperinflation
demand pullvs. cost push inflation

What is a wage price spiral (page 342)?
Questions 1-6 (odd/even) page 343.

Read Oprah Winfrey (344)Answer questions 1+2 (odd/even)

13(3) Poverty
Identify the key terms (345)
Poverty rate vs. poverty threshold
enterprise zone
block grant
workfare

Look at poverty rates by group ( 346) What race and gender  has the highest and lowest rates of poverty.
What does the Lorenz curve (348) show?
Questions 1-8 (350) odd/even
Questions 1+2 on page 351.

Chapter 3 HW

3(1) (50-55)
profit motive
open opportunity
legal equality
private property rights
free contract
competition
interest group
public disclosure laws
public interest

1. Explain at least 3 advantages of the free enterpise system. 

2. Why does the US have Federal Regulatory Agenices? (55)

3(2) (56-60)
macroeconomics
microeconomics
GDP
business cycle
work ethic
technology

4. Read Fast Fact (60) How can technoloy insure our econmic growth? 

3(3) (62-66)
public sector
private sector
free rider
market failure
externality

5. Read Fast Fact (66) How do pollution permits work?  Do you think sale of these permits is a good or a bad thing?  Explain.

3(4) (67-70)
poverty threshold
welfare
AFDC
cash transfers
in kind benefits 

6. Why does poverty exist in a free  market system?  Should poverty be abolished?  Explain your answer. 

Read about the Government and the Interstate Highway System (71)

7.  Why is it inefficient to leave highway construction soley to the states? 

Chapter 2

Read 2(1) p. 22-27 Read the preview of the section on page 23. Look at the picture on p.22. What do economic systems enable societies to do? Look at the graph on p.24, what resource dominates wheat production? What caused these changes? Write down the 5 economic goals listed in the text box on page 25, what economic goal could help victims of flooding or hurricanes? What type of economic system is pictured on page 26? Identify the key terms listed on page 23. Answer questions #1-8 (odd or even) on page 27.

Read 2(2) p.28-32 Read the preview of the section on page 28. What are the three examples of markets pictured on page 28-29. Look at the Circular Flow pictured on page 30, What is exchanged in the factor market? What is exchanged in the product market? Look at the cartoon on page 31, what are they really saying? Read the fast fact on page 32, when does the free market provide social services? Identify the key terms listed on page 29, Answer questions #1-8 (odd/even) on page 32. Read the Profile on Adam Smith (p.33) Answer questions #1+2 .

Read 2(3) Centrally Planned Economies Read the preview of the section on page 34. Look at eh pictures on page 34, why doesn't the government have to motivate individuals in a market economy? Look at the picture on 35, does the worker appear very style conscious? What three communist icons are pictured on page 36? What problems are shown in the pictures on pages 36 and 37? Identify the key terms listed on page 34. Answer questions #1-6 (odd/even on page 38. Read the Real-Life Case Study on pag 39. Answer questions #1+2 on page 39.

Read 2(4) p.40-44 Read the preview of the section on page 40. What public good is pictured on page 40? What government benefit is pictured on page 41? Read about Sweden's Mixed Economy on page 41, why do economists refer to the Swedish government as a "nanny state"? Look at the new circular flow model pn page 42, how does it differ from the model on page 30? Look at the Continuum of Mixed Economies picture on pag 43, where would Sweden fit? Explain your answer. Read the fast fact on page 43, what Chinese fast food is discussed? Look at the picture on page 44, what type of economic systems are shown? Identify the key terms listed on page 40?

Economics Business Interview

Business Interview-  

Presentations due week of October 10, 2019

Only Rule: DO NOT ASK WHAT THE PERSON EARNS/YEAR

PowerPoint / visual needed for presentation

Speak to a Sole Proprietor, partner, or manager of a business

Name of subject interviewed

Name of establishment and how long it existed

How long has the person worked at the establishment?

Story behind the start up or the person getting involved in establishment

Type of investment in business-

      Physical and human capital, natural

      Fixed costs

      Variable costs

Target audience, how do they reach their customer? (advertisement…)

How do they expand their market share?

Seasonal and cyclical nature of business?

Any indicators of  the business cycle changing?

Employee expectations?

How do local, state or federal regulations impact business?

What type role can government play in helping your business?

How have the Trump tariffs impacted their business?

What types of sacrifices had to be made to make a successful business?

What are the benefits of owning or managing a business?

Words of wisdom to someone looking to enter the field?

10 things you need to know today 1. Iran denies its behind strikes against Saudi oil facilities Iran on Sunday denied U.S. accusations that it was behind Saturday's drone strikes on two major oil sites in Saudi Arabia, which forced Saudi Aramco to suspend its production output by half. Yemen's Houthi rebels, who are backed by Iran in a civil war against a Saudi-led coalition in Yemen, claimed responsibility for the attacks, but U.S. Secretary of State Mike Pompeo blamed Tehran, arguing there was "no evidence the attacks came from Yemen." Mohammad Javad Zarif, Iran's foreign minister, said Pompeo was "turning to 'max deceit'" after "having failed at 'max pressure.'" It is just the latest example of heightened tensions between Tehran and Washington, which have risen since the U.S. departed the 2015 nuclear pact and placed sanctions on Iran. [The Washington Post, Mike Pompeo] 2. Tropical storm moves away from Bahamas The Bahamas, still recovering from severe damage caused by Hurricane Dorian earlier this month, was mostly spared by Tropical Storm Humberto, which is moving away from the Caribbean nation. The Bahamas did receive some rain from the storm, but the heaviest rain and wind remained away from land, and the storm damage this time around was reportedly negligible. Humberto has actually strengthened, as it now sports 60 mph sustained winds and is expected to become a hurricane Sunday, but it's headed northeast and is expected to drift further out into the Atlantic ocean away from the U.S. mainland. The storm does appear to be headed in Bermuda's direction, but it is unclear at this stage if it will threaten the island. [CNN, ABC News] 3. Former Yale classmate reportedly alerted FBI about Kavanaugh sexual misconduct allegation Max Stier, a former Yale University classmate of Supreme Court Justice Brett Kavanaugh, reportedly notified senators and the FBI during the justice's confirmation process last year about a previously unreported sexual misconduct allegation involving the justice when he was a student at Yale. Stier reportedly said he saw Kavanaugh, a freshman at the time, at a drunken dorm party with his pants down when his friends then pushed his penis into a female student's hands. It is unclear if Stier knew the female student, or if she has verified the incident as described. The FBI reportedly did not investigate the allegation and Stier has declined to speak about it publicly, but The New York Times reports it corroborated the story with two officials who have communicated with Stier. Kavanaugh faced multiple accusations of sexual misconduct during his confirmation process. [The New York Times, Business Insider] 4. White House confirms Hamza bin Laden's death President Trump confirmed Saturday that the U.S. killed Hamza bin Laden, the son of the al Qaeda leader, Osama bin Laden, in a counterterrorism operation in the Afghanistan-Pakistan region. Trump and administration officials provided no further details other than a three-sentence statement confirming the news, though American officials have reportedly said there is some indication that the CIA, rather than the U.S. military, conducted the strike. Hamza bin Laden's death was first reported in July, but the White House did not officially confirm. Washington said Hamza bin Laden's death "not only deprives al Qaeda of important leadership skills and the symbolic connection to his father, but undermines important operational activities of the group." [The Associated Press, The Week] 5. Hong Kong protests continue in defiance of police ban Hong Kong's 15th consecutive weekend of anti-government, pro-democracy protests turned violent Sunday, as tens of thousands of demonstrators marched in defiance of a police ban. Some protesters reportedly threw bricks and petrol bombs near government offices in the city, and police retaliated by firing tear gas and deploying water cannons. Throughout the day, the protesters reportedly splintered off in different directions throughout the city; a fight broke out between demonstrators and a group of men in one area. Earlier in the day, hundreds of protesters gathered outside the British consulate in Hong Kong, demanding the United Kingdom pressure China into maintaining Hong Kong's freedoms guaranteed in 1997 when the U.K. handed control of the city to Beijing. [BBC, South China Morning Post] 6. Trump says Taliban have 'never been hit harder' after canceling negotiations President Trump tweeted Saturday that the Taliban have "never been hit harder," one week after he canceled a secret meeting at Camp David with the Islamist group's leaders. It is unclear if Trump was referring to any specific actions taken by the U.S. The president ended peace negotiations with the Taliban, which likely would have resulted in the withdrawal of U.S. troops from Afghanistan, after the group launched an attack that killed 12 people, including a U.S. soldier. Trump said the Taliban know "they made a big mistake and they have no idea how to recover." Trump's forceful message also comes a day after Taliban leaders traveled to Moscow to meet with Russian officials. [Fox News, Donald Trump] 7. Border Patrol agent wounded in shooting A Border Patrol agent was reportedly wounded in a shooting while conducting a traffic stop in Texas near the U.S.-Mexico border, authorities announced Saturday. Another agent reportedly shot and killed the suspect, who was reportedly a 25-year-old man and a U.S. citizen. The driver of the car, who was not killed, was reportedly a 32-year-old woman, also a U.S. citizen. The driver and the vehicle were taken into custody, but the suspects have not been identified, and few other details about the incident have been released. The wounded agent was transported to a hospital with non-life-threatening injuries, Customs and Border Protection said in a statement. [The Washington Examiner, CBS News] 8. Tunisia holds second, tightly-contested presidential election since 2011 revolution Tunisians are voting Sunday in the country's second presidential vote since longtime ruler President Zine El Abidine Ben Ali was removed from power during the 2011 revolution, which sparked the Arab Spring. Sunday's election is taking place following the death of 92-year-old President Beji Caid Essebsi, who served in the role since 2014. The voting is reportedly unpredictable, as those taking to the polls have the option of choosing between 24 candidates, including two women. A candidate needs a majority of votes to win the election, and if that does not happen in the first round of voting, the two leading candidates will compete in a run-off on a later date. [Al Jazeera, BBC] 9. Apple TV+ premieres first show at festival Apple's new streaming service, Apple TV+, premiered its first show, Dickinson, at the Tribeca TV Festival. Dickinson is a period piece about the life of Emily Dickinson, an iconic and prolific 19th century American poet. Hailee Steinfield portrays the titular character, while rapper Whiz Khalifa plays a personified version of "Death" who reportedly flirts with the poet, and 30 Rock's Jane Krakowski portrays Dickinson's mother. Apple reportedly plans to spend $2 billion on original programming like Dickinson for the streaming service, and the show's cast said the company spared no expense on period costumes and sets. Seven other shows will debut alongside Dickinson when the streaming service launches on Nov. 1. [Reuters] 10. New York discovers $1 billion in Sackler wire transfers The New York attorney general's office in a court filing Friday said it uncovered about $1 billion in wire transfers by the Sackler family, the owners of pharmaceutical giant Purdue Pharma. The discovery comes after thousands of municipal governments and 23 states tentatively reached a settlement with the Sacklers and Purdue, which manufactures OxyContin, over the company's alleged role in the opioid crisis plaguing the United States. The transfers have raised speculation that the Sacklers could have been trying to hide assets while facing litigation. The attorney general's office only presented initial findings, but the filing said they identified "previously unknown shell companies" that Mortimer Sackler used to move Purdue money through international accounts before concealing it in real estate investments. A spokesman for Mortimer Sackler said there was nothing newsworthy about the "decade-old" transfers. [The New York Times, NBC News]

Chpt 1

1(1)
 Economics

Need vs. Want-

Goods vs. Services

Scarcity vs. Shortage

Factors of production-  land, labor, capital

Physical vs. Human Capital

Entrepreneur-


1(2)
trade off

guns or butter

opportunity cost (best opportunity lost)

thinking at the margin (marginal analysis)


1(3)
production possibilities curve

production possibilities frontier

efficiency

underutilization

cost

law of increasing costs

Economics essential questions

How do rational individuals make choices? 

What is the role of the government in the economy?
How do politics and economics mix?
How do political parties reflect their views of the role of the government in the economy?
How do political races impact the economy?

Rank order the most important issues for society:
  Security, Prosperity, and Freedom

What is Economics?

Economic Concepts

  Scarcity
  opportunity costs
  production possibilites curve
  role of saftety nets
  3 economic questions
Traditional, Command, Market Economies

Microeconomics
Supply and Demand
Elasticity
Market Equilibrium and the role of prices
Perfect Competition
Monopoly 

Monopolistic Competition


Labor  and business organizations
Sole Proprietorships
Partnerships,
Corporations


Macroeconomics

Aggregate Supply and Aggregate demand
Fiscal Policy  

Government regulation and deregulation

Monetary Policy

The Role of the Federal Reserve