Wednesday, April 11, 2018

Month 8 week 4: Federal Regulatory Agencies fix the video links

Federal Regulatory Agencies:

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The government has created a number of federal regulatory agencies to oversee the economy. The government's involvement in our economy has created a modified free enterprise system. The agencies are intended to protect and regulate industries and consumers. Some of the agencies you maybe familiar with are:

  • FDA - Food and Drug Administration
  • NLRB- National Labor Relations Board
  • EPA - Environmental Protection Agency
  • FAA -  Federal Aviation Administration
  • FDIC -Federal Deposit Insurance Corporation
Directions: Watch the following video: FDIC   and visit the following website: FDA and answer the following questions. Post your answers.

1. If you open a savings account in a bank that indicates deposits are FDIC insured, what protection does that give you?

2. If you purchase uncooked meat at the grocery store what government agency will oversee monitor the quality and safe handling of the product?

3. Which Agency oversees the safety and procedures of the airline industry?

4. Select a Federal Agency that interests you. Tell us about the agency include the name, the purpose, and how the agency benefits American society.

Tuesday, March 27, 2018

Month 8 week 3: Anti-Trust Legislation

Anti-Trust Legislation

Directions: Review document below. Watch at least one of the two links. Answer the questions. Post your answers. 

Sherman Anti-Trust Act (1890)

 Chapter 7 Section 3

The government can encourage competition and regulate monopolies in order protect the public welfare. This power was established in the late 1800's when a law was passed to prevent monopolies, combinations and trusts. The law was the Sherman Antitrust Act of 1890. It outlawed all contracts in restraint of trade in order to slow the growth of trusts and monopolies. The Act was intended to maintain competition. However, more specific laws were needed to stop practices that interfered with trade between the states. The government created four anti-monopoly legislative acts known as:1890 Sherman Antitrust Act, 1914 Clayton Antitrust Act, 1914 Federal Trade Commission Act and the 1936 Robinson Patman Act. The over arching goal of the legislation is to prevent market failures due to inadequate competition and restrictions on trade between the states. 

The Sherman Anti-Trust

Directions: Watch one or both of the above posted videos which describes the Sherman Anti Trust Act and answer the following questions. Post your answers.
1. Define the following terms trust and monopoly.
2. Describe the Sherman Anti Trust Act noting when, where and what it was about.
3. What was the chief effect of the  Sherman Antitrust Act?

Month 8 week 1 and 2: Market Structure- Self Interest

Chapter 7 Market Structures







Adam Smith on Self-Interest (Document A)


Adam Smith was a Scottish professor that strongly believed in the idea of a free economy. His ideas were the foundation of Capitalism.  In this passage  from his book The Wealth of Nations, Adam Smith discusses his law of self-interest, which is the idea that people work for their own good.     


“The natural desire of every individual is to improve his own condition (life).  
For example, it is not because of the benevolence (kindness) of the butcher, the brewer, or the baker that we expect our dinner, but from their regard for their own self-interest
It is for his own benefit, and not that of the society, that the butcher is thinking about when he slaughters his pigs for meat. His self-interest leads him to choose that employment (job) which is also helpful to society, but he intends (desires) only his own gain. If people were not willing to pay the butcher good money for his meat, then the butcher would not care to slaughter his pigs.”

Guiding Questions
  1. Analyze: What does Smith mean when he says “the natural desire of every individual is to improve his own condition”? Explain.





  1.  Summarize. Why does Adam Smith believe the butcher does his job (EXPLAIN! Don’t just say “self-interest!”)?





  1. Interpret: Do you agree with Adam Smith that people do their jobs only out of self-interest? Are there any jobs that people might do for a different reason? Explain. 


Thursday, March 15, 2018

7.4 Chapter 7 Market Structures-Competition

Chapter 7 Market Structures

The term laissez-faire originated with a group of eighteenth century French economists who supported free trade. Their slogan, laissez fiare, laissez passer ("let us alone, let us have free circulation of goods") was adopted by Adam Smith to describe the idea of no government interference in the economy. (Glencoe TE Econ Principles and Practices p. 164)

Directions: Learn more about Adam Smith and his ideas about the economy by watching the videos below. Read the following historical writings of Adam Smith in the document below. Analyze the document. Answer the questions. Post your answers.



Adam Smith on Competition (Document B)


Adam Smith was a Scottish professor that strongly believed in the idea of a free economy. His ideas were the foundation of Capitalism.  In this passage  from his book The Wealth of Nations, Adam Smith discusses his law of competition, which is the idea that competition forces people to make a better product


“If any trade, item, or object is beneficial (helpful) to the public, free and more general (widespread) competition will always make it more so (beneficial)It is a characteristic of man that no item or object is produced to his liking. He finds that there is need for improvement in everything.
The whole industry of human life is not employed (used) to obtain the supply of our three most basic needs, which are food, clothes and lodging (housing). The industry of mankind is employed to obtain the luxuries (nice things) of life according to the nicety and delicacy of our tastes (the styles people like).”

Guiding Questions
  1. Analyze: According to Adam Smith, why is competition a good thing? Explain.





  1.  Summarize: Please read the second paragraph. What is the main point of this paragraph? Put it in your own words






3.     Interpret: Do you think it is a good thing that the “industry of mankind” is not being used to supply our basic needs, but to  supply “the luxuries of life?” Why or why not?


7.3 Price Adjustment: Glencoe Economics Chapter 6

Price Adjustment: Glencoe Economics Chapter 6    

surplus is a situation in which the quantity supplied is greater than the quantity demanded at a given price. Therefore, the price tends to go down as a result of the surplus.  On the other hand, a shortage is a situation in which the quantity demanded is greater than the quantity supplied at a given price. As a result, both the price and the quantity supplied will go up in the next trading period.

Directions: To further explain the Supply and Demand, watch the following lesson and answer the questions below. Post your answers.
Demand and Supply Price Adjustment


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Questions: Recall a recent visit to an area shopping mall or online vendor and look for examples of surpluses and shortages. List 5 to 10 items for each concept. Note that almost any sale or clearance item can be an example of a surplus, while rain checks or sold-out items signal a shortage. Post your list of surplus and shortage items.Also write a brief paragraph in which you hypothesize as to why the surplus or shortage occurred.

7.2 Elasticity

Demand Elasticity: Glencoe Economics, Chapter 4 





Directions:View the Elasticity of Demand video. Answer the following question. Post your answers


Questions

1.) Define elasticity of demand.

2.) Provide examples of price elasticity. 

3.) Define inelastic Demand. Provide examples of  

4.) Explain how price can affect demand?