Blog 5#

1.) Using what you learned about the three functions of money, explain how 'play money' differs from 'real' money?
you can't spend play money ,play money has no functions , but real money most important function is the medium of exchange because it facilitate transactions .In order for real money to hold its value overtime , it must be a store of value.Real money also has a unit of account when goods and services are being exchanged.
2.)Money has no actual value other than the value we attach to it. The barter system would still be practiced today if the participants did not agree to set a value on a piece of printed paper that represented the value of the goods and services they had to offer. What would you accept in place of money, if someone wanted to 'buy' your most prized material possession?
My most prized material is my clothes and the only thing i would accept other than money for it is my own place to live.

1.)What does a circular flow model tell us?
shows us that the input from each sector to each sector spurs on production and goods and services that are created.


2.) What is the role of households in the three sector circular flow model?
the role of households pay taxes to the government and the households gives the businesses labors and payments.

3. What is the role of businesses in the three sector circular flow model?
the role of the business is to pay taxes and give goods and services to the government .Business also gives income and goods and services to the households.

4. What is the role of government in the three sector circular flow model?
the government provides services and payments to the business and services and income to the households.

5. What role do households have in the factors or resource market (inputs)?
the households are the factor market which means households produce factors of production.
Title: Law of Demand and Law of Supply - M12


For each event described below, explain what happens to either the demand or supply curve. (increase/decrease? Shifts left or right?)
the demand curve
(a) What happens to the demand for chicken if concerns about mad cow disease lead to widespread euthanizing of cows on U.S. cattle farms?
the demand for chicken will increase and the demand for cattle will go down due to the mad cow disease crisis.


(b) What happens to the supply of orange juice if Florida is hit with very severe weather?the supply of oranges will go down which will cause the production of orange juice to decrease.


(c) In the market for coffee, severe global weather systems destroy 30% of the coffee bean crop.
the supply for coffee will go down and the price will of the coffee will go up.


(d) In the market for cereal, if the price of cardboard material used to package cereal increases.
if the price of cardboard material used to package cereal increases then the supply for cereal increases also.

2. For each part below, EXPLAIN what happens to equilibrium quantity and price (increase or decrease?)

.In the market for doughnuts, if they were found to be a major contributor to high cholesterol in adults. the supply for doughnuts will go up and the price will go up because a lot of people like doughnuts. In the market for doughnuts, if widespread unemployment continues.
then doughnut businesses will go out of business.
In the market for doughnuts, if Krispy Kreme introduces a new whole wheat 'low-calorie' doughnut. the krispy kreme probably would make a bigger profit but the business will increase.


3. What are two factors that can change the quantity demanded? Provide an example for each.
the price can change the quantity demand

BLOG 4#

 

In a market economy the economic efficiency tells when the consumers choices are at the lowest possible cost. The economic equity is based on how the prices may vary within a market economy. The economic freedon in a market economy is when you have freedom to produce, trade and consume any goods and services acquired without the use of force. The economic stability in the market economy is based on the high unemployment rate. Economic growth in a a market economy is when the process by which a nation's wealth increases overtime.The economic security in the market economy have a stable income or other resources to support standard living.


 Why has the role of government in the economy increased dramatically since the 1880s? they had to maintain social and legal framework.
3. Write an argument that supports or opposes the statement in the visual below that says, "deregulation won't work because people are greedy”?
deregulation is when the government has know control over anything. so that means people act the way they do because they have know control.
4. Explain why the government provides public goods and services. Why are these public goods and services NOT provided by the private sector?
 The government provides public good and services because they have to be non-rivalrous and non- excludable so that everyone can have access to these goods. If private sectors provided these goods, they would not be non-rivalrous and non-excludable.

5. What are the 6 functions of government in a market economy (provide an example of how the government fulfills each of these 6 functions)? The six functions of government in a market economy are freedom, security, efficiency, stability, equity, and economic growth. Freedom is achieved by the people having the freedom to work, freedom to produce, trade and consume any goods and services acquired without the use of force, fraud or theft. Security is achieved by having stable income or other resources to support a standard of living now and in the foreseen future. Efficiency is achieved by production proceeding at the lowest possible per-unit cost. Stability high employement. Economic growth is achieved when a nation’s wealth increases over time.

6. Describe the relationship that inputs and outputs have on productivity? The Inputs and Outputs show how much of a product is imported, when products are imported and exported thought out the country they increase productivity.

7. How do investments in capital goods, technology, human capital, training, and educating workers, improve productivity and economic growth? You invest into capital goods, technology, human capital, training, and educating workers that improves productivity because smarter workers find ways to complete more work in less time. Human capital and technology increases productivity because they aid the workers so that more work can be completed.

8. Refer to the chart below and explain the cause of the decrease in the output, productivity, and employment in manufacturing in the United States. What can the United States do to reverse this downward trend in manufacturing? the unemployement is high because they doesnt have many workers producing the output.

Reflection: What are two questions that you still have about these particular standards? What way would market economy be useful? How do inputs and outputs show scarcity?  

HOW DIFFERENT ECONOMIC SYSTEMS ANSWER THE THREE BASIC ECONOMIC QUESTIONS blog 3

The three basic economic questions that every society must answer are; What will it produce? How will it be produced? For whom would it be produced for?

An Economic system is the production, distribution, and consumptions of goods and services of the economy. The four types of economic systems are market,command, traditional, and mixed. In the traditional economies the three economic questions are decided mainly by social customs. In market economies, the economy is like capitalism in the U.S. and the economic questions are based upon individuals in the marketplace. In command economies it is decided by the government. In the mixed economy, they are decided by combination of market decision making and making government order.

The Inuit tribe in Alaska Teach their children that they must always do their best at every task. The child begins by observing the adults doing a task. I support Adam Smith theory because the governer shouldnt be involved with the consumers and sellers. command and traditional economics systems compare and contrast with each other in terms of profit motive, private ownership, consumer sovereignty, competition and government regulation because its like a free market between the economics system!

production possibilities curve

A possibility curve would help you know what or where your business is going wrong at and it would be able to tell you what need to be done next.

the best way to determine if we are making a rational economic decision is to see what type of progress we are making. by seeing what need to be changed in order for a successful business.

Companies  choose to specialize and trade because specializing you can get things from other countries that other companies may not have access to, giving you a better hand from other companies. If they doesnt specialize they wouldnt have a successful company.

I feel that this was the most hardest subject.

Limited Resources and unlimited wants and needs

Their was once a trade off I had to do and that was when I had to go to the movies when the opportunity cost is the money and the time, when i could have just bought it on bootleg and not have to pay eight dollars or wait in the long line. Well i felt like i wouldnt go to the movies next time when a new movie comes out.

The business owner would have to choose a good spot were people would always be in the area. they must have a product in which they know that they can make a profit off of such as the goods, and also a responsible owner.

I could see myself as a entrepreneur who make the decisions about the goods because you wouldnt want your business to work and not go out of business or not have enough goods so I would be the one to make sure everything is going good.


I feel that majority of the standards i know and their are some issues i may have.