DWU #1 – 2/5 “Economics is the study of how individuals use money to consume, create, and distribute goods. “ -Explain how the choices we make in our daily.

DWU #1 – 2/5

“Economics is the study of how individuals use money to consume, create, and distribute goods. “

-Explain how the choices we make in our daily lives can benefit our economic lives.

-Explain how the choices we make in our daily lives can ruin our economic lives.

DWU #2

What role should government play in your life? Should we rely on the government to make decisions for us? Should government help us if times get hard? If so, how much should government help? Explain in a half page response.

DWU #3

• What is the main difference between the 3 economic systems. – What does a capitalist economic system look like?– What does a socialist economic system look like?– What does a communist economic system look

like?

DWU#4

• What is a budget? Why is it important for people to create a budget? What might be some reasons an individual cant make enough per month to pay the bills.

DWU #4

• Describe the Production Possibilities Curve using the following terms:– Scarcity– Productive resources– Opportunity Costs

– Create your own-

DWU #1

• How does PRICE affect your decisions as a consumer?

• When are you likely to spend more money on a good/service, and when are you likely to spend less?

• What factors motivate your decisions?

DWU#2

• Explain the substitution effect.• Explain the law of diminishing marginal utility.– Give an example when you used the substitution

effect.– Give an example of when you experienced the law

of diminishing marginal utility.

DWU #1

• How much an hour do you need to make to keep up with your monthly expenses? Looking at your monthly budget, what are the most expensive items? If you could not make your monthly expenses, what items would you forgo? Draw a pie chart of 100% of your monthly expenses.

DWU #2

• Find the slope and the elasticity of the laptop computers below. Explain your slope answer and determine if the product is an elastic or an inelastic product. (A to B)

• Price Quantity Demand • A. $200 25,000• B. $400 20,000• C. $650 18,000• D. $1000 16,000• E. $1200 10,000

DWU #2

• What are some things that you think about before you purchase an item? If you really want/need the item and it costs a lot, what do you do? Give an example when you had purchased something and the satisfaction from that item declined over time.

DWU #1

• What is a demand schedule. Create one.• What is a demand curve. Create one.• What is the slope from pt. A to pt. B looking at

your demand schedule.• What does your slope answer mean?

DWU #2

• Explain what elasticity of demand means?• What does it mean if a product is elastic? Give

an example of a product that might be elastic.• What does it mean if a product is inelastic?

Give an example of a product that might be inelastic. (A to B)– Price Quantity Demand– A.2500.00 25000– B.3000.00 20000

DWU #4

• What is the law of supply? What are the 4 things that determine supply? Graph both supply and demand locating market equilibrium (price and quantity).

• Graph shortage and surplus. • Define shortage and surplus.

DWU #2

DWU #

• If you purchased 20 original Nintendo games at 10 dollars each and sold them 10 years later for 30 dollars each, how much profit would you have made on your original purchase?

• Why are they worth more today than when you purchased them?

• Why do people buy things and sell them later on ebay or garage sales? EXPLAIN…

DWU#

• The price of Apple Ipads have increased from 750 dollars to 850 dollars. The quantity demanded by the consumers went down from 28 million to 26 million because of the increase in price. Is Apple ipads an inelastic or an elastic product? Graph it.

DWU #3

• What is a shortage? What happen to prices when items are in short supply?

• What is a surplus? What happens to prices when items are too many?

• Give an example with jobs we try to get or with items we try to buy that are in short supply or too many. What are the price of those items or what does that job pay?

DWU #

• After watching the Stossel clip, what are your thoughts about how the people were treated for trying to help people in need? Do you think that the government should outlaw selling things to individuals in time of need? Why or why not. Draw a graph of a shortage of generators using the following numbers:– Market equilibrium 200$ Quantity 25000– Supply at 12000 Demand at 35000

DWU #

• How do banks make money? What is interest? In the interest rate formula a=p(1+rt), what is p? What is r? What is t?

• Calculate a student loan of 20,000 dollars over 10 years at an interest rate of 3.5%– What is his/her monthly payment?– How much total is he/her going to spend on the

20,000 loan?

DWU

• Define shortage and describe how it causes a price ceiling. Define surplus and how it causes a price floor. Graph either one.

DWU #

• Looking on page 388,what are the four types of unemployment. Explain and give an example of each.

DWU #

• Describe what takes place when the economy is experiencing a recession. What does the government do to fix this problem? (taxes and spending)

• What is the result of the fix? Graph it.• Describe what takes place when the economy is

experiencing inflation. What does the government do to fix this problem? (taxes and spending)

• What is the result of the fix? Graph it.

DWU #

• What are the four components of Aggregate Demand.

• What is net exports?• If exports = 45 billion and Imports= 56 billion• Graph the result if our trade policy results in a

trade deficit.

DWU #1

• “The rich get richer and the poor get poorer.”• Do you agree with the quote above? Why or

why not?• How is this statement true in some respect

and how is the statement false in some respect. –Explain.