This blog exists to provide an open channel for communication between Economics teachers across the state of Florida.
Ten Key Principles of Economics
1. Everything has a cost. There is no free lunch. There is always a trade-off.
2. Cost is what you give up to get something. In particular, opportunity cost is cost of the tradeoff.
3. One More. Rational people make decisions on the basis of the cost of one more unit (of consumption, of investment, of labor hour, etc.).
4. Incentives work. People respond to incentives.
5. Open for trade. Trade can make all parties better off.
6. Markets Rock! Usually, markets are the best way to allocate scarce resources between producers and consumers.
7. Intervention in free markets is sometimes needed. (But watch out for the law of unintended effects!)
8. Concentrate on productivity. A country’s standard of living depends on how productive its economy is.
9. Sloshing in money leads to higher prices. Inflation is caused by excessive money supply.!!
10. Caution: In the short run, falling prices may lead to unemployment, and rising employment may lead to inflation.
This is one of the rare times when a post will venture out of the obvious realm of Economics. This segment from a great PBS show called "Sound Tracks" left me scratching my head. Most people are aware of the heavy handed tactics employed by Vladimir Putin throughout his official and unofficial life in power. But, as you will see, he's adopted the idea of a cult of personality from the old Soviet Union with a dance hall twist. In the end, maybe the Russian people have deserved 800 years of whacked dictators.
The airline pricing system is confounding, but the presence of discount airlines and business travelers heavily influences the prices in some routes. Click on the link to access some clarity to this riddle and also view an accompanying video clip.
Click on the link above and you'll access a video production from the Fed that effectively illustrates the functions of the central bank. This used to only be available in hard copy DVD, but this is a much more convenient way to offer the content.
RSA Animate – Crisis of Capitalism Clicking on the link takes you to an animation video and lecture by a radical socialist economist. He conveys his unique take on the recent financial crisis and how it is endemic of a germane flaw of Capitalism. The video and lecture are very thought provoking and should stir a great deal of discussion in your classroom.
RSA Animate – Superfreakonomics Clicking on this link will take you to a short video animation on the classic Ultimatum Game. This is an entertaining look at the motives that drive people to make the choices they do. The video and actually playing the game with your students will clarify in their minds the difference between greed and self-interest, and whether there actually is altruism in the world.
Summary: What happens to output when a firm adds more and more of a variable input to a fixed input? Eventually diminishing marginal returns set in.
In Favorite Ways to Learn Economics by David Anderson and James Chasey have an experiment "Econville Links Factory" in which students make links. I have modified the experiement so that students have to make "S" for Sharks. Students graph total product and marginal product and learn how marginal cost is related to marginal product. Here are the steps I used to make the M's.
1. I have a stack of 4" X 4" paper squares, a pair of scissors, and a blue marker. The work is completed on a desk. My rule is that a worker has to be at least touching the desk to be in the factory.
2. I add one worker and give the worker 30 seconds to make as many M's as possible.
3. After tbe round I record the total amount produced.
4. I repeat steps 2 and 3 until I have hired six workers.
Typical results are: 4, 10, 18, 24, 28, and 30.
I then ask students to look at the total product curve and identify when diminishing marginal returns set in. I show how specialization lead to a greater production of goods with less resources.
Sammy says, "I know more about Economics than you do."
A Message From Brett
At this point I've loaded articles from a variety of sources that may be helpful to you in teaching some concepts. There are both Micro and Macro issues addressed. Feel free to add more or suggest how they might be used. Use the contact e-mailer box a little further down on the left. I have included many of them in my instruction and will supplement some of them with assignments in a later post. Simply click on the title of the post to be taken to the article. It would be great to share best practices, resource ideas, materials, plans, organizational techniques, pacing charts, review methods, or anything else we have found helpful. I understand all the demands on your time so I'll wait patiently for your contributions.
