SUPA ECONOMICS Curriculum 2014

Whitesboro Central School Curriculum Econ 203 Economic Ideas and Issues Mr Klein (SUPA Economics Teacher) Mr Coriale (Project Facilitator, Social Studies Department Chair, Economics Teacher) July 2014 Whitesboro/SUPA Economics Curriculum July 2014 Overview: Syracuse University Project Advance is a cooperative program between Syracuse University and your high school that allows high school students to enroll in Syracuse University courses Teachers who are also adjunct SU instructors teach these classes in the high school, and they follow the curriculum and guidelines established by the University The Project Advance program enables high school students to gauge their ability to college work prior to full-time college study Upon successful completion of a Syracuse University course, students are awarded SU transcripts that record credits earned These credits are transferable to hundreds of colleges and universities nationwide For more information about Syracuse University Project Advance, visit www.supa.syr.edu (Source:http://supa.syr.edu/index.php) ECN 203 Economic Ideas and Issues: Syracuse University credit: credits Economic Ideas and Issues is an introduction to mainstream economic thought designed for students with a liberal arts interest The goals of this course are to introduce students to the ideas that form the foundation of modern Western (neoclassical) economic thought, to examine the basic framework (the model) that economists have built on this foundation, and to show how this model is applied to current issues facing individuals and society The course begins with a presentation of the scientific method, which is then used to analyze the question: How individuals and societies make choices when they are faced with scarcity? Beginning with the individual in the simplest of situations, a one-person society, the course moves step by step to develop a model of a complex society based on division of labor and exchange through markets The process takes students from the microeconomic to the macroeconomic level, emphasizing the connection between these two perspectives Students examine the benefits, as well as the problems, inherent in a market-oriented economy The course prepares students to analyze and understand the ongoing economic policy debate between interventionists and non-interventionists The course is rigorous but not heavily mathematical Students should understand basic algebra and geometry More importantly, they should be able to follow carefully reasoned logical development of a theoretical model and to apply that model to their own experience ECN 203 provides an excellent opportunity to nurture that skill The course helps students to understand and to recognize the elements of economic theory, to identify the peculiar roles of these elements, and to understand how they fit together Although its goal is not to study complexities of theory in great detail, students can expect to develop a strong foundation in neoclassical analysis applicable to study in other fields and to everyday life, as readers of newspapers and other news media, and as citizen participants in a representative government Furthermore, ECN 203 is designed to help students understand “how the world works.” Of course, along with economic forces there are social, political, ethical, and natural forces at work Economics is, however, a very important part of that story To the extent that students master the material presented in the course, they will have a solid foundation in mainstream economic thought that can be applied to everyday experience and to further study in economics or the social sciences (Source:http://supa.syr.edu/courses/details.php? courseid=694&streamid=&prev=89) There is flexibility for this curriculum to be taught with various instructional strategies and assessments as determined by the individual teacher Although this curriculum is based on the topics that are required by Syracuse University and certain mandates must be met, the teacher is encouraged to “own” the course, adapting it and designing instruction to fit the needs of the students and employ the instructional strengths of the teacher Common Core Standards: The SUPA curriculum will incorporate the following Common Core Standards through varied instructional techniques, assessments, and activities CCSS-RH-11-12.1 CCSS-RH-11-12.2 CCSS-RH-11-12.3 CCSS-RH-11-12.4 CCSS-RH-11-12.5 CCSS-RH-11-12.6 CCSS-RH-11-12.7 CCSS-RH-11-12.8 CCSS-RH-11-12.9 10 CCSS-RH-11-12.10 11 CCSS-RST-11-12.2 12 CCSS-RST-11-12.6 13 CCSS-RST-11-12.7 14 CCSS-RST-11-12.8 15 CCSS-RST-11-12.9 16 CCSS-RST-11-12.10 17 CCSS-WHST-11-12.1a 18 CCSS-WHST-11-12.1b 19 CCSS-WHST-11-12.1c 20 CCSS-WHST-11-12.1d 21 CCSS-WHST-11-12.1e 22 CCSS-WHST-11-12.2a 23 CCSS-WHST-11-12.2b 24 CCSS-WHST-11-12.2c 25 CCSS-WHST-11-12.2d 26 CCSS-WHST-11-12.2e 27 CCSS-WHST-11-12.4 28 CCSS-WHST-11-12.7 29 CCSS-WHST-11-12.8 30 CCSS-WHST-11-12.9 31 CCSS-WHST-11-12.10 NYS Learning Standards: The SUPA curriculum will incorporate the following NYS Learning Standards on a daily basis through varied instructional techniques, assessments, and activities  Social Studies 4: Economics  Social Studies 5: Civics, Citizenship, Government  ELA 1: Language for Information and Understanding  ELA 3: Language for Critical Analysis and Evaluation  ELA 4: Language for Social Interaction  MST 1: Analysis, Inquiry, and Design  MST 6: Interconnectedness: Common Themes  MST 7: Interdisciplinary Problem Solving Curriculum Topics and Objectives (The following curriculum objectives are based on the course text: Principles of Economics: A Foundation for Understanding the Economy, 3rd Ed (Evensky, J.) ISBN 1256702897 1.0 INTRODUCTION 1.1 GENERAL INTRODUCTION TO OUR STUDY Learning targets: Students will explain how an econosystem resembles an ecosystem Students will explain the following assertion: Economics is one tool in a social science tool kit Identify the other tools and describe how one hones his/her skills with these tools Analyze and interpret the following statement: Economics is Truth 1.2 THE SUBJECT OF ECONOMICS Learning targets: Students will be able to identify the fact of the human condition from which the study of economic life begins Define opportunity cost Identify the one resource that is inevitably scarce for all individuals Illustrate how its scarcity confronts each individual and influences choice Explain the following assertion: Money is the great escape from scarcity Contrast the challenge of choice faced by individuals and that faced by society as a whole Explain the relationship between scarcity and opportunity cost 1.3 A PREVIEW OF THE STUDY Learning targets: Describe the subject of microeconomics Describe the subject of macroeconomics Contrast the subject of microeconomics and macroeconomics Identify what markets well under the right conditions 1.4 OUR METHOD FOR DEVELOPING THE MODEL Learning targets: Define vision (according to Schumpeter) Identify the steps in the process of model building Describe and explain the importance of each Identify two sources of problems in a model Identify the point at which ideology enters the scientific process Explain the effect of ideology on model building Explain why scientists adopt assumptions Indentify the relationship among strong assumptions, weak assumptions, and relaxed assumptions Explain the value of starting analysis with strong assumptions and then relaxing them Define ceteris paribus and explain the assumption that is held constant Assessment: Homework 2.0 MODELING INDIVIDUAL CHOICE 2.1 MODELING INDIVIDUAL CHOICE- OUR ASSUMPTIONS AND DEFINITIONS Learning targets: Identify the motive that we assume drives the choices of all individuals Define utility, rational economic behavior, consume, and goods and services Explain the arrangement of the above terms as they are used in the model Define preference ordering Explain the assumption the model makes about an individual’s preference ordering 2.2 DIMINISHING MARGINAL UTILITY Learning targets: Define margin Define marginal utility Explain diminishing marginal utility Explain why we assume perfect divisibility of units Explain what is meant by marginal analysis Calculate the total utility and marginal utility Interpret the pattern represented in the marginal utility graph 2.3 CONSTRUCTING A DECISION RULE Learning targets: Explain the decision rule Define satiate Describe a bliss point Explain the purpose of starting out with such an unrealistic decision rule 2.4 RELAXING OUR “NO SCARCITY” ASSUMPTION Learning targets: Define optimize Explain the concept: optimal allocation Describe how the utility maximizing decision rule changes as the no scarcity assumption is relaxed Explain the only way one can maximize utility Explain the concept of a constrained optimization problem 2.5 RELAXING OUR “NO PRODUCTION NECESSARY” ASSUMPTION Learning targets: Explain the relationship between society’s endowment and scarcity Define marginal product Explain diminishing marginal product Define value from the marginal product – V 2.6 RELAXING OUR “NO FUTURE” ASSUMPTION Learning targets: Describe intertemporal choice Explain the concept of discounting the future Define, explain, and apply the discount rate Define present value Define saving and investing Explain the concept of time horizon and describe its relationship to sustainability 2.7 RELAXING OUR “NO RISK AND UNCERTAINTY” ASSUMPTION Learning targets: Define risk Explain the impact of risk on decision-making Explain the concept of expected present value Define uncertainty Explain the difference between risk and uncertainty Explain how perceptions influence risk Identify the sources of our perceptions Describe how perception management can be used as a tool of government policy Describe how perception management can be used as a tool of private enterprise 10 Demonstrate how socially developed perceptions of gender roles affect behavior according to the model 11 Explain how the model applies to a public or private use of media 2.8 CONCLUDING OUR ANALYSIS OF INDEPENDENT INDIVIDUAL CHOICE Learning targets: Explain why when an isolated individual decides to produce, it is automatically a decision to consume, and when he/she decides to invest, it is automatically a decision to save Identify where an isolated individual's choice coordination system is located Identify what distinguishes the simple, isolated world of an individual from the world of interdependence Assessment: Homework Exam 3.0 INTERDEPENDENT CHOICE AND MARKET COORDINATION 3.1 FACTORS THAT GIVE RISE TO COMPLEXITY, INCLUDING THE DIVISION OF LABOR AND THE GAINS FROM TRADE Learning targets: Explain why we give up the security of total independence for the vulnerability of interdependence Explain the connection between social complexity and social productivity Explain the division of labor Identify the three reasons Adam Smith cites for the increased productivity from the division of labor Identify a potential problem that the division of labor can generate Define surplus Explain why the division of labor gives rise to individuals holding surpluses Explain why the division of labor gives rise to exchange Identify the role of a coordination mechanism in a complex society 10 Explain absolute advantage 11 Explain comparative advantage 12 Identify the condition that limits the division of labor 13 Analyze how the development of “highways” of trade contributes to a society’s productive capacity 14 Describe the system of a traditional society 15 Describe the system of a command economy 16 Identify the role of markets in a “liberal” society 17 Explain the concept of commutative justice, and describe the relationship between commutative justice and sustainability in a liberal, free market society 18 Identify the features of a liberal society under ideal conditions that make it such an attractive system 19 Describe John Stuart Mill’s conception of distributive justice 3.2 THE ROLE OF MONEY IN MARKETS Learning targets: Describe the role of financial capital in a market system Define barter Explain the problem with a barter system Define general equivalent Identify three roles of money Identify four characteristics of a general equivalent that would make it a good candidate for money Define commodity money and fiat money 3.3 HOW A MARKET WORKS Learning targets: Identify Adam Smith and The Wealth of Nations Explain and draw a fully labeled generic market picture Identify what the supply line in a market picture represents Identify what the demand line in a market picture represents Describe what functional form represents Explain the difference between demand and quantity demanded Draw a shift in demand Explain the difference between supply and quantity supplied Draw a shift in supply 10 Explain and draw how the market adjusts to surplus and shortage, moving towards equilibrium 11 Define equilibrium 12 Explain why disequilibrium is not a stable condition in a perfectly competitive market 13 Identify the signal on which the entire market system depends 14 Explain an administered price system and give an example 15 Analyze the problems that arise with administered prices 3.4 THE GENERAL MARKET SYSTEM Learning targets: Identify the two primary sets of players in the basic model of a complex society Explain the circular flow diagram and explain the interaction between the two sets of players Describe the role of firms in the market system Identify the two basic kinds of markets Explain how the market players participate in each Describe the circular flow of real things Describe the circular flow of money Explain the relationship between the circular flow of real things and the circular flow of money Explain the relationship between General Equilibrium and General Competitive Equilibrium Explain why information is not costless 10 Identify and explain a violation of the equal access to information assumption 11 Identify and explain a violation of the equal access to the market assumption 12 Describe how market power affects the character of the competition 13 Explain market failure 14 Explain what is meant by Pareto optimality 15 Identify the standard for Pareto optimality 4.0 THE PRODUCT MARKET DEMAND UNDER PERFECT COMPETITION 4.1 INTRODUCTION Learning targets: Explain the necessary conditions for individuals to have demand 4.2 PRODUCT DEMAND Learning targets: Explain why a product demand line slopes down Explain what elasticity of demand measures Define: elastic demand Define: inelastic demand Give examples of elastic and inelastic demand Identify elastic demand vs inelastic demand on a demand graph Explain why price elasticity is important for policy Explain how a firm might use price elasticity information Show graphically and describe the case of perfectly elastic demand 10 Show graphically and describe the case of perfectly inelastic demand 11 Explain elasticity of demand as it applies to necessities and luxuries 12 Identify various factors and conditions that affect elasticity of demand 13 Apply the equation economists use to represent the measure price elasticity 14 Describe the relationship between price elasticity and total revenue 15 Explain how the elasticity of demand can affect tax incidence and tax burden 4.3 EXPANDING THE DEMAND RELATIONSHIP – IDENTIFYING THE SHIFT VARIABLES Learning targets: Identify the shift variables in the product demand relationship Define: cross price elasticity of demand Apply the equation that measures the cross price elasticity of demand Define complements Understand the relationship between two goods that have a negative cross price elasticity, Define substitutes Understand the relationship between two goods that have a positive cross price elasticity Draw and label market graphs for three related goods Analyze how a change in supply conditions for one good will affect the equilibrium price and quantity exchanged in the markets for related goods 10 Define normal good 11 Define inferior good 12 Apply the equation for income elasticity 13 Identify the sign of the income elasticity equation for a normal good and an inferior good 14 Apply the difference between demand and market demand 15 Construct a market demand line 16 Apply graphically cases of entry and exit on the demand side of the product market 17 Identify factors that can cause entry and exit and strongly affect product market demand Assessment: Homework 81 WTO 82 Zero sum game Additional Topics THE FOLLOWING TOPICS WILL BE ADDRESSED IF TIME ALLOWS THEY CORRESPOND WITH THE WHITESBORO ECONOMICS 12 CURRICULUM (CHAPTERS AND 11 RESPECTIVELY) THEY ARE NOT REQUIRED BY SYRACUSE UNIVERSITY AS PART OF THE SUPA COURSE A-1 FINANCIAL MARKETS/PERSONAL FINANCE Learning Targets: Define investing Define risk as it applies to savings and investing Explain the various investment options and the risk associated with each (savings, insurance, pensions, IRA, mutual funds, treasury bonds, corporate bonds, municipal bonds, stocks) Define portfolio and prospectus Explain the difference between compounded interest and simple interest Explain how stock markets work Explain what a stock index is Explain day trading Understand credit 10 Explain what is meant by credit score and credit rating 11 Explain how a credit card works 12 Explain the difference between fixed and variable rate loans 13 Understand how the prime rate affects interest rates 14 Define mortgage 15 Analyze the best time to get a variable rate or a fixed rate loan A-2 BUSINESS ORGANZIATIONS Learning targets: Explain the following organizations: a Sole Proprietorships b Partnerships c Corporations d Franchises e Non profits f Co-ops g Trade associations Define liability Analyze the benefits and disadvantages of each business organization SUPA Economics 203 Course Outline TOPIC APPROXIMATE LENGTH Microeconomics Chapter – Introduction to Economics  Limits of Economics  Scarcity  Micro vs Macro  Developing the Model Week Chapter – Modeling Individual Choice  Assumptions  Diminishing Marginal Utility  Decision Rule  Relaxing Assumptions Week Chapter –Interdependent Choice and Market Coordination  The Division of Labor and Trade  The Role of Money in the Market  The Market System Weeks Chapter – Product Market Demand Under Perfect Competition  Product Demand  Demand Elasticity  Shift Variables Weeks Chapter –Product Market Supply Under Perfect Competition  Product Supply  Marginal Cost and Firm’s Cost Structure  Shift Variables Week Chapter – Representing the Power of the Invisible Hand  Marginal and Average Costs  Total Revenue, Total Cost, and Profit  Incentive and The Magic of Markets Week Chapter – The Factor Market  The Factor Market and the Factors of Production  Factor Market Supply  Factor Market Demand Chapter – General Competitive Equilibrium  General Equilibrium Week Week  General Competitive Equilibrium Chapter – Market Power, Market Failure, and General Equilibrium  Market Power and Market Structures  Rent-Seeking  Market Power and Social Institutions  Market Failure  Public Goods and Free Riders  Externalities Week Chapter 10 – The Microeconomy and the Government  The Policy Debate  Government Intervention-Cases and Issues  Government Intervention-The Philosophical Debate  Distributive Justice and the Role of Government Week Macroeconomics Chapter 11 – Introduction to Macroeconomics  The Macroeconomic Perspective  Unemployment  GDP Week Chapter 12 – The Basic Macro Model  Aggregate Demand  Aggregate Supply Week Chapter 13 – Aggregate Demand  Consumption  Investment and Capital Markets  Trade Balance  International Capital Flows  Exchange Rates  Government Budget Position Weeks Chapter 14 – Aggregate Supply and the Transition to Policy  Sources of Aggregate Supply Shifts  Transition to Policy Week Chapter 15 – Policy: The Promise and the Problems  Macroeconomic response to Unemployment  Macroeconomic response to Inflation  Macroeconomics and the Invisible Hand  The Promise Week Chapter 16 – Monetary Policy  The Fed 1.5 Weeks     Banks Fractional Reserves Monetary Policy Tools Financial Crises Chapter 17 – Fiscal Policy  The Budget Process  Fiscal Policy Intervention  The Crowding Out Effect  The Fiscal Policy Debate Week Chapter 18 – Trade Policy  Competitive Edge and Costs of Production  Exchange Rates and Manipulation  Quotas and Tariffs  Trade Policy Issues  Globalization, International Economic Policy and Sustainability Week Chapter 19 – Conclusion  The Ricardo-Malthus Debate  John Maynard Keynes  Testing the Model and the Problem of Testing Week Course Timeline (Sample) *The following dates are approximations and are subject to change This timeline serves as a guide for reading the text MICROECONOMICS 2/3-2/6 2/7-2/13 2/14 2/19-2/21 2/24-3/3 3/4-3/11 3/12-3/18 3/19-3/20 3/24-3/27 3/28 3/29-4/4 4/7-4/9 4/10 4/11 Chapter 1-Introduction (HWK 1) Chapter 2-Modeling Individual Choice (HWK 2) Test Chapters 1-2 Chapter Independent Choices and Market Coordination Chapter Product Market Demand (HWK 3) Chapter Product Market Supply Chapter The Power of the Invisible Hand (HWK 4) Test Chapters 3-6 Chapter The Factor Market (HWK 5) Chapter General Competitive Equilibrium Chapter Market Power, Market Failure, and GE (HWK 6) Chapter 10 The Microeconomy and the Government Mid-Term Exam End of Quarter MACROECONOMICS 4/21-4/25 Chapter 11 Introduction to Macroeconomics (HWK 7) 4/28-5/1 Chapter 12 The Basic Macro Model (HWK 8) 5/2 Test Chapters 11-12 5/5-5/12 Chapter 13 Aggregate Demand (HWK 9) 5/13-5/15 Chapter 14 Aggregate Supply and Transition to Policy 5/16 Test Chapters 13-14 5/19-5/21 Chapter 15 Policy: The Promise and the Problems 5/22-5/30 Chapter 16 Monetary Policy (HWK 10) 6/2-6/5 Chapter 17 Fiscal Policy (HWK 11) 6/6-6/11 Chapter 18 Trade Policy (HWK 12) 6/12 Test Chapters 15-18 6/13-6/16 Chapter 19 Conclusion 6/18/14 8:00-11:00 AM Final Exam Supplemental Materials THIS CURRICULUM WAS DESIGNED TO MEET THE REQUIREMENTS OF SYRACUSE UNIVERSITY AND PROVIDE A BASIC GUIDLEINE FOR THE COURSE IT IS ANTICIPATED THAT THE STRUCTURE OF THE COURSE WILL CONTINUE TO EVOLVE AND ADDITONAL MATERIALS BE USED AS THE INSTRUCTOR MASTERS THE COURSE IT IS SUGGESTED THAT THE FOLLOWING MATERIALS BE INCLUDED IN THE COURSE WHERE TIME ALLOWS OR TO ENHANCE THE COURSE AND ADDRESS COMMON CORE STANDARDS: Incorporate instruction utilizing Freakononomics a Chapter questions attached Incorporate instruction utilizing The Economic Naturalist a Topic guide and analysis form attached Incorporate Credit Card Project a Version of project attached Incorporate Career Salary Project a Version of project attached Incorporate Federal Budget Project a Version of project attached Incorporate Public Policy Project a Designed in collaboration with the SUPA Public Policy course Project available in SUPA Public Policy curriculum Parents’ Night Meeting a Designed to answer additional questions and concerns regarding SUPA It is recommended that this meeting coincide with the annual “Back to School Night” as the structured 10-minute session cannot address specific questions or topics b Sample letter for parents attached SU Visit a As part of the course curriculum the class visits SU to audit classes on and attended an instructional session to in the library resources to expose students o the research process and the materials available to them through the SUPA program This trip should be done in collaboration with the SUPA Public Policy course The trip arrangements can be made through Marissa Johnson in the SUPA office Future Curriculum Work As with ay course, continued analysis, adaptation, refinement, and evolution is recommended It is suggested that future supplemental materials (economic literature) be considered and incorporated into the course as published or recommended as listed below: Design instruction incorporating The World is Flat, by Thomas Freidman SUPA ECN 203 Whitesboro High School The Economic Naturalist Robert H Frank The following economic concepts are addressed in the book as listed below and can be assigned in correspondence with the course material Page Question/ Enigma Topic 18 Why is milk sold in rectangular containers, while soft drinks are sold in round ones? Input Costs 22 Why are the fuel filler doors on the driver’s side of some cars but on the passenger’s side of others? Choices/ Economic Questions 33 Why many bars charge patrons for water but give them peanuts for free? Complements 40 Why many cleaners charge more for women’s shirts than for men’s? 44 Why are brown eggs more expensive than white ones? Supply/ Input Costs 51 Why female models earn so much more than male models? Labor/ Wage Discrimination 56 Why are people who repave driveways paid only half as much in the suburbs of Dallas as in the suburbs of Minneapolis? Externalities 60 Why we leave tips for some services but not for others? Monopolistic Competition 81 Why airlines charge much more for tickets purchased at the last minute, while Broadway theaters follow the opposite practice? Demand Opportunity Costs 87 Why VCRs have so many features when the average person doesn’t use a majority of the features found on even the simplest machines? Production Costs/ Technology 123 Why are child safety seats required in cars but not in airplanes? Opportunity Cost 155 Why is the unemployment rate so much higher in Germany than in the United States? Opportunity Cost/ Entitlements/ Fiscal Policy 156 Why are automobile engines much smaller in Europe than in the United States? Taxes Name _ Date Period The Economic Naturalist Everyday Economic Enigmas Analysis Sheet Economic Enigma: Your response to the above enigma: What economic principle(s) is/ are addressed in the above enigma? What variable(s) could change your response to the enigma? Now turn to page _ of The Economic Naturalist to answer question #4 What is Robert H Frank’s, author of The Economic Naturalist, explanation to the enigma? Mr Klein SUPA ECN 203 Freakonomics Chapter What School Teachers and Sumo Wrestlers Have in Common? Answer the following question by combining the information in Freakonomics, and your personal insight and knowledge to answer the following questions Chapter Concepts  Incentives matter  Consumer behaviors and maximizing utility  Government regulation Questions (Adapted from Freakonomics Student’s Guide, Palmer and Carlson): What examples can you think of where moral or social incentives and economic incentives are both present? Are the different incentives complementary or competing? For each of the cases you cite, which you think is the stronger incentive? Describe some ways in which a schoolteacher might be able to improve the scores of his or her students on a standardized test How has a well-motivated and seemingly benign government requirement to administer standardized tests to grade school students had unintended and malicious consequences? Can you think of other examples of government regulations that were imposed to achieve one goal but have had unanticipated consequences? Explain what incentives, if any, a university might have to artificially improve the test scores and grades of its athletes What the authors of Freakonomics conclude from an analysis of the Paul Feldman’s bagel sales data? Do these conclusions match with economists’ expectations of human behavior? Mr Klein SUPA ECN 203 Freakonomics Chapter How is the Ku Klux Klan Like a Group of Real-Estate Agents? Answer the following question by combining the information in Freakonomics, and your personal insight and knowledge to answer the following questions Chapter Concepts  Economic Value of information  Incentives matter  Technological change  Competition Questions (Adapted from Freakonomics Student’s Guide, Palmer and Carlson): Explain what is meant by the term “information asymmetries” and give examples of information asymmetries we encounter in everyday life Explain how such innovations as the Internet have affected the prevalence of information asymmetries Explain how the choice of terms a real estate agent uses to describe a particular property conveys additional information about the property, and hence the price a potential buyer might be able to successfully offer the seller Explain how the information a person has can affect his/her propensity to discriminate As part of your explanation, distinguish between taste-based discrimination and information-based discrimination Mr Klein SUPA ECN 203 Freakonomics Chapter Why Do Drug Dealers Still Live with Their Moms? Answer the following question by combining the information in Freakonomics, and your personal insight and knowledge to answer the following questions Chapter Concepts  Costs of Production  Labor Markets  Supply and Demand  Equilibrium  Incentives Matter  Monopolies Questions (Adapted from Freakonomics Student’s Guide, Palmer and Carlson): What is “conventional wisdom?” What are some ways that “conventional wisdom” comes into being? Considering this chapter’s analysis of the transformation of Listerine from an antiseptic to a cure for halitosis, what can one conclude about the effect of advertising on market demand for a good or service? How did J.T., a branch leader of a Black Disciples street gang, acquire and maintain a regional monopoly over crack cocaine within the territorial domain of the gang? What are monthly costs incurred by J.T.’s unit of the Black Disciples? Which costs would be considered fixed costs? Which would be considered variable costs? Based on the examples in this chapter, what does the invention of better and cheaper production methods to the price and sales of a good or service? Mr Klein SUPA ECN 203 Freakonomics Chapter Where Have All the Criminals Gone? Answer the following question by combining the information in Freakonomics, and your personal insight and knowledge to answer the following questions Chapter Concepts  Supply and Demand  Competition Questions (Adapted from Freakonomics Student’s Guide, Palmer and Carlson): List each of the explanations of the drop in the crime that occurred in the 1990s that are evaluated by Levitt and Dubner Of the explanations you identified in the previous question, which ones not appear to in fact be valid? Which ones appear to in fact be valid? Did the “graying of America” help bring down the crime rate in the 1990s? Why or why not? Summarize the argument by Donahue and Levitt regarding the relationship between the drop in crime in the 1990s and the legalization of abortion as a result of Roe v Wade Your summary should focus on such factors as the characteristics of the average criminal (e.g., average age, home life), what happened in states that legalized abortion prior to the decision in Roe v Wade, and the type of woman who is likely to take advantage of Roe v Wade Mr Klein SUPA ECN 203 Freakonomics Chapter What Makes a Perfect Parent? Answer the following question by combining the information in Freakonomics, and your personal insight and knowledge to answer the following questions Chapter Concepts  Information  Incentives Questions (Adapted from Freakonomics Student’s Guide, Palmer and Carlson): What market forces give rise to parenting books that appeal to a parent’s fears and inadequacies rather than books that present an objective and evenhanded articulation of the state-of-the science of good parenting? How does the information in this chapter regarding the contradictory and confusing assemblage of information from parenting experts support the major theme of this book (Hint: incentives matter)? Based on the example of perfect parenting in this chapter, provide examples that illustrate how the combination of asymmetric information and fear can lead to inefficient outcomes What tool does an economist use to make sense of data that includes many variables? In general terms, how does regression analysis sort out the data? ... disadvantages of each business organization SUPA Economics 203 Course Outline TOPIC APPROXIMATE LENGTH Microeconomics Chapter – Introduction to Economics  Limits of Economics  Scarcity  Micro vs Macro... Learning targets: Describe the subject of microeconomics Describe the subject of macroeconomics Contrast the subject of microeconomics and macroeconomics Identify what markets well under the...Whitesboro /SUPA Economics Curriculum July 2014 Overview: Syracuse University Project Advance is a cooperative program between