Post 25

America on the Ginni index is 40.  People my think that we are the best country to live in and that we have no problems.  However, this is completely untrue. Especially now with the way our economy is we are struggling to stay a float. For example comparing us to nations in Europe that we believe we are equal to, why are they are so low on the Ginni Index however we are so high? Are government needs to think of plan quick to help or countries economy get stronger before we fall off the deep end.

Post 24

THIS IS NOT REAL, MR CAMPBELL ASKED US TO MAKE UP SCENARIOS FOR THE FALLOWING:          

  Structural Unemployment- I decided to be a milk man. However, they stopped having people going around delivering and instead they started selling it in stores.  So now I am structural Unemployed.

          Seasonal Unemployment- I always have been a fan of being on the beach.  I decided to be a lifeguard; however there is only one season of the year that you can be a lifeguard.  During the spring, fall, and winter they don’t need me so I am seasonal unemployed.

            Frictional Unemployment- Right after college I had earned my degree in teaching, however after a couple of years of being a teacher I decided that I want to higher my education.  I started to take night classes and now have my Dr. Degree.

            Cynical Unemployment- Because of the economy and the budget cut for teachers.  I was about to get ten year but they needed to lay off teachers and I was one of them.  I am now cynical unemployed.

Wanted add POST 23

Post 22- Quiz's

Quiz 1- FACTS:
       1.) In 2000 some 1.1 million people were marginally attached workers.
       2.) Discouraged workers are a subset of marginally attached workers.
       3.) Underemployment represents wasted resources and lost output.
       4.) Anyone who is not classified as either employed or unemployed is considered not a part of the labor force.
       5.) Some unemployment is unavoidable and a natural part of a healthy economy. Economists consider an unemployment rate of about 5 percent to represent full employment.

Quiz 2- FACTS

      1.) Aggregate supply is the total amount of goods and servuces that are produced throughout the economy.
      2.) Inflation is the increase of average price level of all products in an economy.
      3.) Deflation is the decrease in an average price level of all goods and services in an economy.
      4.) To measure the price level, economists cconstruct a price index.
      5.) Economists use price indexes to calculate the inflation rate.

Quiz 3- FACTS:

         1.) Income inequality in the U.S. had become greater than in any other large industrialized country in the 1990's.
         2.) In 2000 the poverty threshold for a family of four was $17,761.
         3.) In 1999 the poverty rate was 11.8 percent.
         4.) The Lorenz Curve is used by economists to measure the amount of inequality in the distribution of income.
         5.) The Gini Index is another statistical measure of income inequality.

Post 21

National Income Accounting: A variety of measures of national income and output are used in economics to estimate total economic activity in a country or region, that includes gross domestic product (GDP), gross national product (GNP), and net national income (NNI).

Gross Domestic Product: is the measure of an economy that was adopted by the United States in 1991; the total market values of goods and services produced by workers and capital within a nation's borders during a given period (usually 1 year)

Output expenditure model: total output responds to the demand for it.

Personal Consumption expenditure: the component statistic for consumption in GDP collected by the BEA. It consists of the actual and imputed expenditures of households and includes data pertaining to durable and non-durable goods, and services

Gross Investment: the measure of investment used to compute GDP. This is an important component of GDP; it provides an indicator of the future productive capacity of the economy

Nominal GDP: GDP as actually measured, in current dollars

Real GDP: a macroeconomic measure of the size of an economy adjusted for price changes

Price Index: an index that traces the relative changes in the price of an individual good (or a market basket of goods) over time

Underground Economy: refers to both legal activities, such as often found in construction and services industries where taxes are not withheld and paid, and illegal activities, such as drug dealing and prostitution

Gross National Product: former measure of the United States economy; the total market value of goods and services produced by all citizens and capital during a given period (usually 1 yr)

Business Cycle: recurring fluctuations in economic activity consisting of recession and recovery and growth and decline

Expansion: In business cycle, economic growth

Peak: In business cycle, height of economic prosperity

Contraction: In business cycle, a period of economic decline marked by falling real GDP

Recession: a recession is a business cycle contraction, a general slowdown in economic activity over a period of time

Depression: a sustained, long-term downturn in economic activity in one or more economies

Trough: Lowest point in economy

Leading Indicators: indicators in economics and finance used to predict the future

Lagging Indicators: indicators in economics and finance used to measure the past

Coincident Indicators: is a statistic about the economy. Economic indicators allow analysis of economic performance and predictions of future performance. One application of economic indicators is the study of business cycles.

Real GDP Per Capita: related to all economic indicators that are calculated, usually at the end of a fiscal year

Labor Productivity: Workforce productivity is the amount of goods and services that a labourer produces in a given amount of time.

Productivity Growth: a measure of output from a production process, per unit of input

Capital-to-labor ratio: Example, labor productivity is typically measured as a ratio of output

Capital Deepening: a term used in economics to describe an economy where capital per worker increases. This is also known as increase in the capital intensity.

GDP chart.

Post 18- Twitter man

Text 1 I would like to able to use this link on my midterm because I believe that it would greatly help me.  It gives you definitions for vocab and is very easy to navigate.  All you have to do is click on the letter that the word begins with that you are looking for and search from the list it gives you.

Text 2 This website will also help me with my midterm because it lists all the materials that we have gone over in class.  It has several different categories that you can choice from and when you click on them it gives you the definitions and examples for the term.

Text 3 This website is the last website that I would like to be able to use on my midterm.  This has different links that you are able to click on to explore the world of economics and gives your resourceful links.

Business Cycle Graph

The graph above does a good job of explaining a good job of showing what a real business cycle with date would look like but does not have any vocab on it.

I have choosen this graph for the best Business Cycle award.  It does a great job of really explaining to someone how the business cycle works.  Besides this graph using all the correct vocab it just really stands out.  It has dotted lines and is very colorful so it grabs your attention. 




This graph shows the vocab but in a great depth. Nothing really stands out in this graph and it is just boring.

Chapter Ten study Guide

Mr. Campbell asked us to use all the information we learned from chapter ten and make a study guide for ourselves http://www.studystack.com/flashcard-531400

leading/coincident/lagging indicators

Leading indicators are indicators that change before the economy changes.
              1.) stock market returns.
              2.) average hours of manufacturing.
              3.) Average unemployment claims for insurance.

Lagged economic indicator is one that does not change direction until a few quarters after the economy does.
              1.)  Unemployment  rate starts to change and tends to increase after the ecomomy starts to
                improve.
              2.) The value of industrial and commercial loans.
              3.) The ratio of manufacturing and trade inventories to sales

Coincident indicators change at approximately the same time as the whole economy
              1.) Number of employees on a non-agricultural payrolls.
              2.) Personal income less transfer payments.
              3.) Industrial production.

 Leading/coincident/lagging indicators are categories that are based on their usual timing in relation to the business cycle. 

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.