Video Reaction

      Mr. Campbell showed us to educational but funny videos about economics.  I believe that showing kids videos like this teach them more then boring videos because it keeps there attention and gives them a good laugh, but it still teaches them a good lesson .  Some of the vocabulary was hard to understand because they where rapping it but you could still understand a majority of it. 

Chapter Ten Reading

Mr. Campbell asked us to read chapter 10 in our economic books and write a response to what we had learned throughout the reading.  In order for microeconomics to be able to study and understand how things fit into the economy at large by studying a particular industry, a particular company, or a particular type of household.  They also use this information that the gather to try and perdict when the interest rates will jump and how high they will reach.  This reading brought to my understandings that economics is not an easy thing to study because it is changing constantly nothing ever stays the same, so you have to be on top of everything.  Prices behave in strange ways and are always changing and you have to know when it is okay to increase a products price and when you need to lower it depending on how well it is selling. 
What I hope to learn:
1.) How does the government control inflation.  2.) What causes the economy to experience good times and bad times so often. 3.) What causes inflation.

GDP verses GPI

The GDP ignores the fact that there are distinctions between transactions that add to well-being and those that diminish it.  Instead of it separating the cost from benefits, and the productive activities from the destructive ones, the GDP just assumes that monetary transaction all add to well-being.  However that is not true because not all the business lump together all the income and expenses, assets and liabilities.  Also on top of all of this the GDP does not recognize the fact that everything that happens outside the area of monetized barter, despite its significance to the well-being. Finally GDP treats the bad (Crime, Divorce and Natural Disasters as Economic Gain.) instead of focusing on the more important material such as non-market economy of household and community and takes not account of income distribution. 

                The GPI takes into account the 20 aspects of our lives that the GDP tends to leave out, it also adds in some additional figures that can represent the negative effects costs that relate to the economic activity.  This includes figures such as the cost of crime, cost of ozone depletion, and also the cost of resource depletion as well as other things. The GPI will take into consideration the positive and also negative results that may or may not benefit the people of the economic growth.  

Post 11- 3 rules and 4 ingredients create a recipe or math formula that explains how GDP is calculated!

First calculate consumer spending, then Calculate investments, next calculate government purchases, after that calculate net exports by subtracting imports from exports and finally add them all together

M= C + I + G + NX (M= both GDP and the national income, C =consumer spending, I = investments, G = government purchases, and NX= net exports.)

RULES:

1)     Must be made in your country

2)     Must be a final good or service

3)     Must be produced within country’s border

Essay (Technology)

                 Could you imagine our world these days without technology?  It would be a completely different place; we would not be able to communicate with others as much as we do now.  We would have to be able to do stuff on our own for example something as easy as spell check or looking up a definition.  The sad part is that in a couple of years kids might not even know how to use a dictionary because they aren’t even going to have to use one anymore.  This is not a bad thing; technology has taken over our lives.

Video

                There are many different companies out there that are competing to sell the same product and are trying to prove that theirs are the best.   However it may not be whether or not the product is the best, but about what the consumers want and like.  In order to be able to create the perfect product you must know what consumers are going to be looking for and the best way to do that is by trial and error.  You must make something that you think is the best and get it out for a sample and be able to get feedback on how satisfied they are with your product.            

                Also you need to make sure that you are selling your product for a reasonable price.  You want to be with-in the range of what the other producers are selling for.  Sometimes it is best to sell your product a little bit of a higher price; if you are confident that you are producing a better product.

Types of Monopolies

Mr. Campbell asked us to give a real or make believe example of each type of monopoly.

Natural Monopoly- Distribution of water/gas.

Gov't Monopoly- The turnpike.

Technological Monopoly- Microsoft Windows

Geographical Monopoly- a small town store with no shops nearby.

Flash Card Game

http://www.studystack.com/flashcard-521946

monopoly or cartel (oligopolies that cooperate) that you want broken up

I think that we could benefit from a company like PSENG to not stop there business completely but for them to maybe break up into a couple companies.  If they did something like this then it would be cheaper for everyone to pay for electric because they would have to lower their prices to compete with other companies. All you would need is at least two or three different companies so people have things to choice from and PSENG to have at least two companies to compete with.  Everyone would benefit from this and be able to save a lot more money
 

Respones to Quiz's

            I learned from the consumers quiz’s that Consumers will profit more from a competitive market.  If there are any barrier to entry in a market, sellers cannot compete easily and fully.  Trusts are huge monopolies. They were prevalent in post-Civil War America.  Laissez-faire is a French word and it means “let the people do what they want”. The groups of acts were designed to monitor and regulate big business, prevent monopolies from forming, and dismantle existing monopolies.  The ICC was a group that had regulated the railroads until the commission was abolished in 1995.  By taking these quiz’s I have learned a lot of facts that I never knew before.

5 things I have purchased.

1.)    New car-Monopolistic competition.  Lucky for Nissan Rogue that is the only car that I wanted they won me over. There are many different car companies that have very similar SUV’S.  The Rogue really caught my eye and lucky for Nissan I did purchase it and am very happy with my decision.

               

2.)    Gas- Oligopoly there is a variety of gas stations that I can go to and that I do go to.  Usually I will choice the gas station with the lowest price; however this does vary from time to time.  A gas station that might have been cheap one day could increase dramatically one day and a gas station that was more expensive could decrease or be lower that gas station.  

3.)    Clothes- Monopolistic competition.  When you enter a mall or a shopping center there are a variety of different stores that you are able to choice from.  However, there are certain ones that catch your eye but others may not. 

4.)    Wawa Coffee- Monopolist competition.  I can choice from Starbucks, Dunkin Donuts, or other coffee shops but Wawa’s coffee won me over.  I have been to Starbucks but going there every single day can get expensive, I also used to be a fan of Dunkin Donuts.  However noticing how much Wawa has to offer I decided that I can get good quality coffee while still being able to grab a snack or something for lunch.  

5.)    Iccara Pizza- Monopolistic competition.  There are many pizza joints that I would be able   to    choice from but nothing compares to Iccaras.  They won me and my family over since I was a little kid.  I will go to other pizza joints to get a slice, but 99% of the time you will find me at Iccaras.

intro

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