2015 day 3

What could we conclude from yesterday’s organ donor/sale question?

1st Come, 1st Serve Auction Undecided0

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FW Summer Econ – Organ Allocation Issue

Go to computer lab today

What if….In our system:• Firms need households• Households need firms• They are interconnected

• 2 effects:• Govt raised sales tax

to 25%?• Govt decreased

environmental regulation

• Unemployment rate rose by 10%

• Dow Jones increases by 20 %

On your slate1. How much information will you miss if you

miss 1 day of a regular school day? 2. What if you miss 2 days?3. What if you miss 8 days?

“the margin”

• Additional• Ex: production, consumption, effort

Two volunteers

• Two Volunteers• Marginal utility

Two volunteers

• Two Volunteers• Law of diminishing

marginal returns • Eventually marginal

benefits will decrease

Movie Clips

• How do we see Diminishing Marginal Returns in each clip

• NY Coney Island hot dog eating contest• Squidward

Eventually…

Application to students?

Application to business?

Application to government?

Application to partiers

On your Slate

Write a specific example of Diminishing Marginal Returns from your life, using economic vocabulary

Review Biz Organizations

Which of the 3 business orgs would you use to start a…..

Which of the 3 business orgs would you use to start a…..

Which of the 3 business orgs would you use to start a…..

Which of the 3 business orgs would you use to start a…..

Tile setting

Which of the 3 business orgs would you use to start a…..

Which of the 3 business orgs would you use to start a…..

Which of the 3 business orgs would you use to start a…..

Quantitative Easing on back of quizWhy would an economist say it makes sense to pay $500 to fly to Los Angeles, when a person could drive for only $90?

On your slateThink of a day when you got a lot done. What were you doing? Why were you able to do it?

Experiment• 1 group draws

• 1 group draws

• 1 group draws

Graph Experiment

How could I model this?

Increase productivity?

Productivity• Quantity of output for each unit of input

• For example: • Mechanic can do 4 oil changes per hour• Each oil change requires $8 worth of filter & oil

• “At the margin” increases inProductivity

Another example? Hours studying? Working?

Draw and label 2 good PPFlabel impossible, efficient and inefficient

Increases in productivity• Causes ---------• #1 technology• Others:• Human capital• Cheaper inputs• Health• Globalization

Production Possibility PracticeWhat is the

opportunity cost of moving from A to B?

A

B

Production Possibility Practice

Production Possibility Practice

Production Possibility Practice

Production Possibility Practice

Production Possibility Practice

Production Possibility Practice

On your slates

3 reasons negative

In your groups• You are members of the

financial ministry of the country of Travistan

• Create a budget for FY 2015• Smog level 100 million particles per square inch Reducing pollution would

increase tourism and create thousands of new jobs

Travistan

Stock price article• Assignment with your partner, 1 sheet

1. What factors give stocks their value?2. What problems are created by a stock’s change in

price?3. How does this information change your view of the

stock market?4. Pick one of your stocks, what has happened to its

price in the last year? Why might that be misleading5. Write an activity Mr. Klein could use with this article

and its core concept.