Economics Bell Ringer Wednesday, November 14, 2012 USE LAST WEEK’S BELL RINGER SHEET What is...

Economics Bell RingerWednesday, November 14, 2012

USE LAST WEEK’S BELL RINGER SHEET

•What is specialization?•Why is specialization a benefit to market systems? •Why do we need markets if we specialize?

Economics ClassworkWednesday, November 14, 2012

• #36: Cost of Voting: MEL-Con Paragraph• Pick one of the statements. Argue one side or the other.• Cite each specific piece of evidence

• For example: 14% of 18-24 year olds stated one of the top reasons they didn’t vote was because they were out of town during the 2008 Presidential Election (US Census Bureau).

• DEADLINES• Thursday (11/15): Revised Rough Draft• Friday (11/16) by 11:59PM: Typed Final Draft

• Send by Email to: [email protected]• No late assignments accepted (unless you make

arrangements ahead of time)• Monday (11/19): Signed and Revised Rough Draft

and Packet

Economics Bell RingerThursday, November 15, 2012

• Pick an economic system and explain how it considers each of the 5 goals and answers the 3 economic questions

Today’s Handouts:#37 – 11/15 – Ch 3.3 Book Work

Economics Bell RingerFriday, November 16, 2012

DO TODAY’s BELL RINGER ON SCRATCH PAPER AND STAPLE TO BELL RINGER SHEET AND TURN IN

•Pick one of the agents in the circular flow of income and output: households or firms. Explain how this agent participates in the factor and product markets

Economics ClassworkThursday, November 15, 2012

• #37: Ch 3.3 Book Work (due Wednesday 11/21)• Notes, Key Terms, Checkpoint Questions: p. 62-67• P.67 2, 6-9

• DEADLINES• Thursday (11/15) in Class: Revision Form and

Rough Drafts• Friday (11/16) by 11:59PM: Typed Final Draft

• Send by Email to: [email protected]• No late assignments accepted (unless you make

arrangements ahead of time)• Monday (11/19): Revision Form, Rough Draft and

Packet• Wednesday (11/21): Ch 3.3 Book Work

Economics Bell RingerMonday, November 19, 2012

• What role does the government play in a mixed economy?

• What do we need government for?

Today’s Handouts:#38 – 11/19 – Bell Ringer (11/19-11/21)

#39 – 11/19 – PPT Notes Ch 3.3

Economics Bell RingerTuesday, November 20, 2012

• Explain what is market failure?

• What are two characteristics of public goods?

HAPPY THANKSGIVING!

Government Cost/Benefit Analysis

• Proposal: There is an overcrowded high school with 5,000 students. Proposal to build a new high school in the neighborhood for half the students to reduce class size and provide more opportunities for students

• Funding: A federal government loan, paid back by increasing local property taxes 10 percent annually for 12 years

• Is school a public good? Why/why not?

• Are there any positive externalities?

• What are the benefits to the community?

• What are the costs to the community?


1. What am I? (Identify the key term; try not to use notes)

a) a situation in which the free market, operating on its own, does not distribute resources efficiently

b) a shared good or service for which it would be inefficient or impractical to make consumers pay individually and to exclude those who did not pay

c) someone who would not be willing to pay for a certain good or service but who would get the benefits of it anyway if it were provided as a public good

d) an economic side effect of a good or service that generates benefits or costs to someone other than the person deciding how much to produce or consume

e) a good or service that can be used by any number of consumers without reducing the benefits to any single consumer

Market failure

Public good

Free Rider

Externality (Positive/Negative) – from public and private goods

Non-Rival Good

Economics ClassworkWednesday, November 21, 2012

Complete Self-Reflection and Turn-in Bell Ringer

• Pick 1 of these infrastructure projects:• More train service is needed on the south side as

the CTA Red Line ends at 95th street• Uplift needs a better field in the back with a real

track• Chicago has way too many potholes and they need

to be fixed!

• Answer one of these questions to prove the good/service is a market failure: the market wouldn’t provide it• are they public goods/services? Why?• do they suffer from the free-rider problem? • are there any positive/negative externalities? • who’s going to pay for/build it if the

government doesn’t?

Economics Bell RingerMonday, November 26, 2012


#42 – 11/26 – Ch 3.4 Notes and Book Work

• What is the difference between public goods, the free-rider problem and non-rival goods?

• What are these examples of?


Today’s Handouts:#43 – 11/27 – Ch3.4 Poverty Threshold Packet

Sources: U.S. Census Bureau, American Community Survey, 2009, Puerto Rico Community Survey, 2009.

United States: 14.3%

• Define the poverty threshold. Is it the same for everyone?

• How does the Federal Government define someone living in poverty? Is this level too high or too low? Explain your reasoning.


• P.64 Checkpoint: What two criteria must be present for a public good?

• P. 67 Checkpoint: What does government do in response to negative exernalities?

• P.67 #4: What is an example of an action taken by the public sector? Private sector?

• P.67 #7: Why is national defense an example of the free-rider problem?

• P.67 #8: How do the concepts of limited resources and scarcity explain why the government does not try to meet all demands for providing public goods?

Economics DiscussionWednesday, November 28, 2012

• What is the definition of the working poor? Why is it important that our government is concerned for these people?


Today’s Handouts:#44 – 11/29 – PPT Notes Ch 3.4

• What are two primary roles of government?

• What is the goal of government welfare programs?

• What are four ways the government redistributes wealth?

• What is the government’s primary scarce resource? (How will government pay for its benefits programs?)

GET OUT A SEPARATE SHEET OF PAPER FOR THE QUIZ REVIEW. STAPLE THIS TO YOUR BELL RINGER AND TURN IN AT THE END OF CLASS.

Economics Bell RingerFriday, November 30, 2012

Economics Classwork: Quiz ReviewFriday, November 30, 2012

1. What am I? (Identify the key term; try not to use notes)a) an income level below that which is needed to support

families and householdsb) direct payment of money by the government to the

poor, disabled, or retired people (Social Security, Unemployment Insurance)

c) a situation in which the free market, operating on its own, does not distribute resources efficiently


e) government aid to the poor f) goods and services provided for free or greatly reduced

prices (Food Stamps, Section 8, Medicare/Medicaid)

Poverty Threshold

Cash Transfer (Conditional)

Market Failure

Externality (Positive/Negative)

Welfare

In-Kind Benefits

1. We need more parks in south and west side neighborhoods. Explain three reasons why the market will fail to provide these goods/services?

2. The government has a choice between conditional cash transfer, regular cash transfer or an in-kind benefit program. Why are conditional cash transfer programs preferable? Explain the difference between the three program choices.

Economics Quiz ReviewFriday, November 30, 2012

1. P. 72 #4 What are three examples of cash transfers? Three examples of in-kind benefits?

2. P. 72 #5 How are unemployment benefits and worker’s compensation alike?

3. P.72 #7 How does the TANF program seek to answer one of the common objections to the older welfare system?

4. P. 72 #8 Would it make sense for the government to spend money giving job training to people who receive TANF payments? Why or why not?

5. What is the difference between Medicare and Medicaid?

Economics Quiz ReviewFriday, November 30, 2012

• What is the difference between cash transfers and in-kind benefits?

• Why are conditional cash transfers preferred over regular cash transfers?

Economics Bell RingerTuesday, December 4, 2012


#48 – 12/04 – Ch 3.2 Book Work and Notes

#48: Ch 3.2 Notes: Tracking Data & Promoting Economic Strength

• 3 Primary Roles of Government

• Manage market failure and externalities (3.3)

• Redistribute wealth to provide safety nets (3.4)

• Promotes growth and stability (3.2)

Economics ClassworkTuesday, December 4, 2012


Manage market failure and externalities

• Provide public and non-rival goods

• Free-rider problem, can’t exclude others, inefficient to pay individually, everyone benefits without reducing benefits to anyone

• Redistribute Wealth

• Cash transfers, in-kind, medical, education benefits

• To help old, young, disabled, low-income

• Promote Growth and Stability

• 5 Goals: especially Growth, Efficiency, Security, Equity

• Freedom already provided in mixed economy


##48: Ch 3.2 Notes: Tracking Data & Promoting Economic Strength

• Government Promotes Growth and Stability

• US Government tracks lots of data to monitor the US economy

• Promote Employment (Goal: Equity, Security)

• Promote Growth (Goal: Growth, Efficiency)

• Promote Stability (Goal: Security, Efficiency)



• Gross Domestic Product (GDP) is the total value of goods/services produced in a country in one year

• Expansion: periods where GDP is increasing/rising

• Contraction: periods where GDP is decreasing/falling

• Recession: 2 or more straight quarters of GDP falling

• Business Cycle: a period of boom (expansion) and bust (contraction). A full cycle


Source: Bureau of Economic Analysis

2003-2008Expansion =

Economic Growth

Jun08-Mar09Severe Contraction =

Recession

• #48: Ch 3.2 Notes: Tracking Data & Promoting Economic Strength

• Weak Economy

• Strong Economy


• Fill in the table:

Economics Bell RingerWednesday, December 5, 2012

Public Sector Private Sector

Who provides goods/services in this part of the economy

Examples of goods/services in this part of economy

• According to economists, what are the three major roles of government in a mixed economy?

Economics Bell RingerThursday, December 6, 2012

Today’s Handouts:#48a – 12/06 – Classwork Ch 3 Review

1. Compare and contrast regular cash transfers and in-kind benefits. Why are conditional cash transfers preferred to both of the above?

2. Who are the working poor? Do they qualify for below-poverty threshold benefits?

3. According to economists, what are three major roles of government?• What are 4 types of market failure?• What are 4 types of wealth redistribution

programs?• To grow the economy, what 3 areas does

government try to promote?

Economics ClassworkWednesday, December 5, 2012

Safety Nets Survey Discussion (DUE TODAY)

• Did most of the people you interviewed support public funding of the safety net? • Which programs did they particularly support? Not support?

• What groups of people did they particularly support? Not support?

• Do you think they understood the economic issues involved with government funding for these programs?

• Is it important to get the public to understand the economic issues? • Would they care if these programs are sustainable?• What strategies/ideas can we come up with to inform people

in our community?• We will learn more about the economic issues in the coming

weeks.

Economics ClassworkWednesday, December 5, 2012

#48: Ch 3.2 Notes: Tracking Data & Promoting Growth• GDP/capita is the total GDP divided by the number of

people in the country. This is the common world-wide measure of standard of living.


Source: http://www.acus.org/new_atlanticist/americas-coming-decline

What was the severe contraction/recession during the 1930s?

• GDP and GDP/capita move in the same direction

• Economic data tells a graphical story of major events

What was the massive expansion that occurred during the late 1930s-1940s?

Economics Bell RingerFriday, December 7, 2012


families and householdsb) direct payment of money by the government to those in

need. Individuals must satisfy certain criteria/conditions to receive money.




prices (Food Stamps, Section 8, Medicare/Medicaid)

Poverty Threshold

Conditional Cash Transfer

Market Failure


Welfare

In-Kind Benefits

• You have been reading the news and came across this headline: “1Q13 GDP Expected to Contract: Congress Driving Business Cycle Lower”• Is now a good time to quit your job and

look for a new one? Why/why not?

• If you are unhappy with your job, what would be a strategy you could take?

Economics Bell RingerMonday, December 10, 2012


#50 – 12/10 – GDP Tracking and Role of Govt

• Which goal of government action would the following government funding be trying to meet? How would it do so?• Congress decides to increase National

Institute of Health (NIH) funding for medical research.

• The President creates a re-adjustment program to help veterans get the skills they need to get a job when they return from fighting overseas.

Economics Bell RingerTuesday, December 11, 2012

Today’s Handouts:#51 – 12/11 – Fairness in Taxes Notes

#52 – 12/11 – Fairness in Taxes Packets

• Mayor Emanuel has decided to build a bunch of dog parks in Chicago. He is deciding how he should pay for the new dog parks.• Is it easy to figure out who is using a dog park?

• Who should pay the taxes: dog-owners? Everyone?

• The City decides to charge an entrance fee to enter the dog parks. Is this entrance fee fair under benefits-received or ability-to-pay? Explain your reasoning.

Economics Bell RingerWednesday, December 12, 2012

• What is the difference between cash transfers and in-kind benefits?

• Why are conditional cash transfers preferred over regular cash transfers?

Economics Bell RingerMonday, January 7, 2013


#52 – 01/07 – Ch 3 Review: Gallery Walk

#52 – 01/07 – Ch 3 Review: Gallery Walk

• Write a full heading and title on a sheet of looseleaf (you may need more than one)

• Find a partner. Each set of partners needs at least one book

• Start the Gallery Walk. YOU MUST PHYSICALLY MOVE! • (no more than four per station)

• Complete 5 out of 6 stations by the end of class for full credit• 6/6 Extra Credit; 4/6 = 70%; 3/6 = 50%

• 2 or less = 0%

• Work with your partner. Use your resources. Find the answers.

Economics ClassworkMonday, January 7, 2013

• According to economists, what are the major roles of government in a mixed economy?(There are three major roles)

Economics Bell RingerTuesday, January 8, 2013

Today’s Handouts:#53 – 01/08 – Fairness in Taxes Notes

#54 – 01/08 – Fairness in Taxes Packets

Economics Bell RingerWednesday, January 9, 2013


families and householdsb) direct payment of money by the government to those in

need. Individuals must satisfy certain criteria/conditions to receive money.




prices

Poverty Threshold

Conditional Cash Transfer

Market Failure


Welfare

In-Kind Benefits

• Quickwrite (in Friday’s Bell Ringer Box or on a sheet of paper.):

What are the two viewpoints on how a tax can be fair? Explain how they are different. Provide examples of each.

Economics ClassworkWednesday, January 9, 2013


a) the total value of goods/services produced in a country in one year



d) A period of macroeconomic expansion, or growth, followed by one of contraction, or decline.


Gross Domestic Product (GDP)

Public good

Free Rider Problem

Business Cycle

Non-Rival Good

Economics Bell RingerThursday, January 10, 2012

• CTA raised their fares on daily, weekly, and monthly passes this morning. This is like a tax. Explain the reasoning behind your answers. • Under which method of fairness is this tax

justified?

• Is the tax progressive, regressive or proportional in tax rate?

• If you missed the test Friday, you are making it up this morning. Take this time to review your notes. Turn in Tax Packets and last week’s Bell Ringer.

Economics Bell RingerMonday, January 14, 2013

Today’s Handouts:#56 – 01/14 – Bell Ringer (1/14-1/18)#57 – 01/14 –Taxes Classwork Review

1. Complete the table based on you learned last week. With with a partner. Use your resources.

Tax Structures(Provide a Definition of Each)

Which method

of Fairness

?

Benefits(Who is Positivel

y Affected

)

Costs(Who is Negativ

ely Affected

)

Describe an

Example (Detail)

Progressive(Definition here)

Regressive(Definition here)

Proportional(Definition here)

Both

#57 - Economics Classwork: Fairness in Taxes Review

Monday, January 14, 2013

• Write in complete sentences. What is the difference between:• Tax structures vs. tax bases (Give

examples)

• Tax rate versus tax amount (How is each measured?)

Economics Bell RingerTuesday, January 15, 2013

Type of Tax Tax Base?

Tax Structur

e?

Type of Fairness

?

Example Explains

Tax Structure

Federal Income Tax

Sales Tax

Excise Tax (Gas, Alcohol, Tobacco)

FICA Tax

#57 - Economics Classwork: Fairness in Taxes Review

Tuesday, January 15, 2013

• As part of the bill that prevented the fiscal cliff on Jan 1, 2013, Congress ended the payroll tax "holiday". This meant that payroll taxes (FICA tax) went up by 2% for all people earning wages. Remember, payroll taxes are only taxed on the first $110,000 of a person's income.

• a) Is the tax progressive, regressive, or proportional? Justify your answer by explaining your reasoning.

• b) Who is most impacted by the tax increase: high, middle or low income (you may select more than one)

• c) Analyze the tax impact on someone who makes $50,000 per year. Their payroll tax went up 2%. How much more are they paying in taxes every paycheck if there are 26 paychecks per year?

Economics Bell RingerWednesday, January 16, 2013

Today’s Handouts:#58 – 01/16 – Taxes Part 2: Notes

#59 – 01/16 –Taxes Part 2: Packet

Economics Bell RingerThursday, January 17, 2013

a) In the United States, a mixture of regressive and ______________ taxes makes our overall tax system roughly proportional.

b) Unequals should be taxed (Equally or Unequally?) ______________.

c) (True of False): Most excise taxes and user fees are somewhat regressive. __________

d) ____________: One criteria of tax fairness is based on the assumption that people should pay taxes in rough proportion to what they receive from government goods and services.

e) It is fair if people’s taxes should be in proportion to their wealth and income (Which method of fairness).

f) This tax base may come from wages, rents, interest, profits, or other payments.

Progressive

Unequally

TrueBenefits Received

Ability-to-Pay

Income

• Taxes Test Today! No Bell Ringer• Quietly review your Notes (#53 and 58)

and Review Classwork (#57)• Turn in your Bell Ringer

• After the Test• Organize your binder/update table of

contents (Binder Check Next Week)• Complete Tax Packet 2 (#59) – Pages 1-4

EconomicsFriday, January 18, 2013

After the TestOrganize your binder/update table of contents

(Binder Check Next Week)Complete Tax Packet 2 (#59) – Pages 1-4

Marginal Tax Rate (Progressive)

Single Filing Status: Tax Base: Annual Income

Single Filing Status: Marginal Tax Rate Calculation

35% Over $388,350

$112,683.50 plus 35% of the excess over $388,350

33% Over $178,650 but not over $388,350


28% Over $85,650 but not over $178,650


25% Over $35,350 but not over $85,650


15% Over $8,700 but not over $35,350 $870 plus 15% of the excess over $8,700 10% Not over $8,700 10% of the taxable income

Identify the Key Term (From Ch 1):1. The principle that limited amounts of goods and

services are available to meet unlimited needs and wants

2. The resources that are used to make goods and services (and what are the different types?)

3. The use of resources in such a way as to maximize the output of goods and services

4. The process of deciding how much more or less to do for the extra/next unit of production

5. The most desirable alternative given up as a result of a decision

6. A graph that shows alternative (two) ways to use an economy’s productive resources

Scarcity

Factors of production: Land, Labor, Physical Capital, Human Capital

Efficiency

Thinking at the margin

Opportunity Cost

Production Possibilities Curve

Economics Bell Ringer: Tuesday, January 22, 2013

Today’s Handouts:#60 – 01/18 – Taxes Test

#61 – 01/22 –Bell Ringer (1/22-1/25)#62 – Final Review Classwork

• If You Were Not Here Friday:• You will makeup the Taxes Test today!• Quietly review your Notes (#53 and 58)

and Review Classwork (#57)• Turn in your Bell Ringer from last week

• If You Took the Test on Friday:• Complete Final Review Classwork (#62)

posted around the room• Organize your Binder (Binder Check this

week)

Economics Classwork: Tuesday, January 22, 2013

If You Have Completed the Test:Complete Final Review Classwork (#62)

posted around the roomOrganize your Binder (Binder Check this

week)




35% Over $388,350


33% Over $178,650 but not over $388,350


28% Over $85,650 but not over $178,650


25% Over $35,350 but not over $85,650




a) a situation in which the free market, operating on its own, does not distribute resources efficiently





Market failure

Public good

Free Rider

Externality (Positive/Negative) – from public and private goods

Non-Rival Good

Economics Bell Ringer: Wednesday, January 23, 2013

On a scratch sheet of paper: Calculate overall tax rate and tax amount for a single filer who makes $75,000 in annual income.




35% Over $388,350


33% Over $178,650 but not over $388,350


28% Over $85,650 but not over $178,650


25% Over $35,350 but not over $85,650



Economics Classwork: Wednesday, January 23, 2013

• What are the five economic goals of a society?

• What is the difference between a free market and a centrally planned economic system?

Economics Bell Ringer: Thursday, January 24, 2013

Today’s Handouts:#63 – 01/23 – Review Packet

Today’s Classwork: Review for Finals with Peers

• Form a group of 2-3 people

• Look at your Review Packet p. 5 (last one) and pick two chapters/topics that your group would like to review and present to the class on Monday

• After you have signed up for a topic, work on two things:• Review your chapter/topic to prepare for the

presentation

• Work on the review packet

• Exit Ticket: Page 1-3 and Key Terms List for your presentation

Economics Classwork: Thursday, January 24, 2013


Economics Bell RingerFriday, January 25, 2013

1. Identify the Key Term

a) the use of resources in such a way as to maximize the output of goods and services

b) a line on a production possibilities curve that shows the maximum possible output an economy can produce

c) the extra cost of adding a unit

d) The most desirable alternative given up as a result of a decision

e) the use of fewer resources than an economy is capable of using

f) The process of deciding how much more or less to do for the extra/next unit of production

Efficiency (on PPF)

Production Possibilities Frontier

Opportunity Cost

Underutilization (inside/under PPF)

Thinking on the Margin

1. Prod. Possibilities Curve2. Prod. Possibilities Frontier

3. Opportunity Cost4. Marginal Benefit

5. Efficiency6. Marginal Cost

7. Underutilization8. Needs/Wants

9. Thinking on the Margin

Marginal Cost

Today’s Classwork: Review for Finals with Peers

• Finish the Review Packet with your Group

• Work on and (hopefully) finish your review presentation for Monday• I have laptops that can be borrowed for the

period

• You may use any of the computers in the room

• You may write it on easel paper (Powerpoint preferred)

• Exit Ticket: • Review Packet Complete

• Presentation Done (at least mostly complete)

Economics Classwork: Friday, January 25, 2013


Economics Bell Ringer Wednesday, November 14, 2012 USE LAST WEEK’S BELL RINGER SHEET What is...

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