breezing through the sunshine state standards for middle s chool economics /personal f inance

Breezing Through the Sunshine State Standards for Middle School Economics /Personal Finance

Vincent Jackson Ph.D.Professor Economics &Director Center on Economic & Financial EducationFlorida State College at Jacksonville Kent Campus3939 Roosevelt Blvd Jacksonville, Florida 32205

“This program was made possible by the Council for Economic Education through funding from the United States Department of Education Office of Innovation and Improvement”

Thursday June 14, 2012

Should a Market for Human Kidneys be Established?

Supply and Demand for Human Kidneys

Supply and Demand

A Look at the Market for Human Kidneys

Kidney• Functions

Removes waste from the body through the Production of urine

Help to regulate blood pressure, blood volume and the chemical composition of the blood

• Kidney Failure The inability of the Kidney to remove waste from

the body and maintain electrolyte balance The inability to produce urine and dispose of

waste from the body.

• TreatmentRestrict protein intake, diuretics, dialysis, transplantation

“Please don’t take your organs to heaven,

heaven knows we need them here on earth”

Bumper sticker

Health Resources and Services Administration (HRSA)

Organ Procurement & Transplantation Network

Uniting people and information to help save live.

Hypothetical Kidney DataPrice of Kidneys

Kidneys Demanded

Kidneys Supplied

$ -0- 80,000 20,000$10,000 70,000 30,000$20,000 60,000 40,000$30,000 50,000 50,000$40,000 40,000 60,000$50,000 30,000 70,000

At a zero (-0-) price, how many kidneys will be supplied/demanded?

Why would anyone donate a kidney when the price is zero?

What Conclusions can be drawn from the supply/demand for kidneys?

Where/how were the supply of kidneys obtained?

Law and Order Video:Black markets and Kidneys

The U.S. Economy is describes as a:

Free enterpriseCapitalistMixedMarket Economic System

In order for a Market to exist we must have:Buyer (Demanders)Seller (Suppliers)Product (Kidneys)

When buyers and sellers come together in a market, a price established for the product.

Example: Amazon E-harmony Illegal Drugs Housing Child Pornography

Fundamentals of a Free Market Economy

Freedom of ChoiceSystem of Markets and PricesPrivate ownership of Property (Property

Rights)CompetitionLimited Government (Laissez Faire)Self-interest (utility maximizes)

How to use markets to deal with ScarcitySuppose the Federal Government repealed the law banning the sale of Kidneys (ie. a market for Kidneys is established). Can you predict what will happen in

the Kidney market? How will the rise in price effect the

behavior of Suppliers? Can you make any generalizations about the people who might sell a kidney at the equilibrium price but, would not donate a Kidney when the price is zero ($0)

How will the rise in price effect the behavior of Patients?

Can u make any generalizations about the people who might demand a kidney when the price is zero ($0), but will not buy one when the price reaches equilibrium?

According to the graph, how many transplants will occur each year at the new equilibrium?

Would a Free Market for Kidneys result in more or fewer deaths each year?

Would a free market in kidneys be fair for poor people?

As a supplier of Kidneys?

As a Demander of Kidneys?

Suppose the Federal Government instituted a legal market for

kidneys, How would this change the Supply curve? The Demand

curve?

Suppose there was a successful campaign to encourage individuals to donate kidneys, what would you expect to happen in the market for kidneys?

NPR Podcast for OrgansPoll: Americans Show Support for Compensation of Organ

Donors

By Scott Hensley

“This program was made possible by the Council for Economic Education through funding from the United States Department of Education Office of Innovation and Improvement”

Thank you for participating!!