Advanced Economics Week #4

Spring 2012

Advanced Economics 4/16/12http://mrmilewski.com

• OBJECTIVE: Examine consumer spending with credit cards.

• I. Administrative Stuff-Attendance-Journals 1-10 due tomorrow-Ch#10sec#4 & Ch#13sec(2-4)

• II. Journal#10-notes Frontline: The Card Game

• Notice: 36 Days until the Senior’s Last Day!

Advanced Economics 4/17/12http://mrmilewski.com

• OBJECTIVE: Begin examination of economic statistics. • I. Journals 1-10 Due!• II. Journal#11pt.A

-Watch the following:-Indiana's RV Industry Starts a Comeback Amid

Uncertain Economy• III. Journal#11pt.B

-notes on economic statistics• Notice: 35 Days until the Senior’s Last Day!

Quote

• Everybody is a genius. But if you judge a fish by it's ability to climb a tree, it will go through it's whole life thinking it is stupid.

• ~Albert Einstein

Full employment• When people

work, they earn income for themselves while producing goods and services for others.

http://www.publicradio.org/columns/marketplace/whiteboard-blog/Employment-Jan-2011-CORRECTED.jpg

Economic growth• Growth is needed so

that people can have more goods and services.

• Since the nation’s population is likely to grow, economic growth is necessary to meet everyone’s needs.http://change-production.s3.amazonaws.com/photos/wordpress_copies/uspoverty/2010/10/2010-10-

29econ-f1-250x174.jpg

CPI• Consumer Price Index – an index used to measure

price changes for a basket of frequently used common items.

• The CPI reports on price changes for 90,000 items in 364 categories from 85 geographic areas of the country and are compared to their 1982-84 base year prices.

• Produce Price Index – measure price changes paid by domestic consumers for their inputs and is based on a sample of about 100,000 commodities and uses 1982 as the base year.

Midwest urban CPI• Source: U.S. Department of Labor

Bureau of Labor Statistics• Base Year 1982-84=100

Year CPI19951996199719981999200020012002200320042005

148.4153.0156.7159.3162.7168.3172.8174.9178.3182.6188.4

http://data.bls.gov/PDQ/servlet/SurveyOutputServlet?data_tool=dropmap&series_id=CUUR0200SA0,CUUS0200SA0

Midwest Urban CPI 1967-2005

http://data.bls.gov/PDQ/servlet/SurveyOutputServlet

Midwest Urban CPI 1988-2005

http://data.bls.gov/PDQ/servlet/SurveyOutputServlet

Advanced Economics 4/18/12http://mrmilewski.com

• OBJECTIVE: Examine the history of oil. • I. Film: Modern Marvels, Oli

-Answer questions while watching the film• II. Study Hall

-work quietly until the end of class• Notice: 34 Days until the Senior’s Last Day!

Advanced Economics 4/19/12http://mrmilewski.com

• OBJECTIVE: Continue examination of economic statistics.

• I. Journal#12pt.A-Watch the following:-Getting the Laffer Curve Right

• II. Journal#12pt.B-notes on economic statistics

• Notice: 33 Days until the Senior’s Last Day!

CPI• Consumer Price Index – an index used to measure

price changes for a basket of frequently used common items.

• The CPI reports on price changes for 90,000 items in 364 categories from 85 geographic areas of the country and are compared to their 1982-84 base year prices.

• Produce Price Index – measure price changes paid by domestic consumers for their inputs and is based on a sample of about 100,000 commodities and uses 1982 as the base year.

Midwest urban CPI• Source: U.S. Department of Labor

Bureau of Labor Statistics• Base Year 1982-84=100

Year CPI19951996199719981999200020012002200320042005

148.4153.0156.7159.3162.7168.3172.8174.9178.3182.6188.4

http://data.bls.gov/PDQ/servlet/SurveyOutputServlet?data_tool=dropmap&series_id=CUUR0200SA0,CUUS0200SA0

Midwest Urban CPI 1967-2005

http://data.bls.gov/PDQ/servlet/SurveyOutputServlet

Midwest Urban CPI 1988-2005

http://data.bls.gov/PDQ/servlet/SurveyOutputServlet

Organized Stock Exchanges• NYSE – oldest, largest, and most prestigious in

the U.S. Located on Wall Street in NYC• AMEX – smaller stocks, those who can’t quite

make it to the NYSE are traded here. (the JV team) Also located in NYC

• Regional Stock Exchanges – originally listed small companies and new companies. Now, they trade local stocks and better meets the needs of smaller companies. Located in: Chicago, Pacific, Philadelphia, Boston, and Memphis

Over-the-Counter Market• OTC – most stocks in the U.S. are not

traded on organized exchanges. They are traded electronically using NASDAQ

• NASDAQ – National Association of Securities Dealers Automated Quotation

• Few OTC stocks pay dividends. Most are small and new companies

Bull v. Bear

• Bull market – when stocks are strong and stock prices are rising

• Bear Market – when stock prices are falling

Advanced Economics 4/20/12http://mrmilewski.com

• OBJECTIVE: Examine how human psychology and finance interact.

• I. Administrative Stuff• II. Journal#13

-Take notes on the following film:-Nova: Mind over Money

• Notice: 32 Days until the Senior’s Last Day!