Standard 10: Produce a graphic illustration of the business cycle and describe what happens to the economy at each stage of the business cycle.
Objective:
Analyze the key phases of the business cycle.
Wrap Your Brain Around the Concept
What is an example of a cycle in nature?
The business cycle in economic terms is cyclical as well. We have strong
times when people have jobs, are confident, and spend money on luxury
items. We also have times when unemployment increases, people have less
money to spend, businesses struggle to earn the same dollar amounts and
must cut back. Each response affects another part of the cycle (like
amoeba tag).
Read pages 75-77 in the textbook.
Can you answer these questions?
During a recession, what is the average person's fear?
How is a depression different from a recession?
The executives at a television manufacturer increased production because they believed the economy was in recovery. Now they have large quantities of TVs in their warehouses. Why do you think they have this overstock condition?
Review Key Concepts
What are the three goals of a healthy economy?
How does monitoring economic measures help economists achieve the three goals of a healthy economy?
Describe the effect of high unemployment on a nation's economy.
Describe what happens to an employee in each phase of the business cycle.
Partner Project
Work with a partner to produce a graphic illustration of the business cycle (expansion, recession/depression, trough, recovery) and describe what happens to the economy at each stage of the business cycle.
Cite examples of businesses that can flourish in each stage of the cycle (hint: different businesses can flourish at different stages of cycle.) Be prepared to share with the class.
Upcoming Test over Chapter 3
Next class time we will have a test over chapter 3. Use Quizlet to help you prepare.."Marketing Chapter 3 Political and Economical Analysis Quizlet Chapter 3
Standard 9: Explain how economic indicators are used in a market economy for business analysis and marketing decisions. Demonstrate the ability to retrieve and interpret figures from public websites.
Opening Assignment
On your own paper answer the following questions: (20 minutes)
How would you describe a healthy teenager (physically, habits, etc)?
Which, if any, are personal goals you have made for yourself? (you won't have to share aloud)
How do teens actions affect their health?
In your opinion, why do so many of us act in ways that are not healthy?
Do you think the economy in the United States today is healthy?
How can we measure the health of our nation's economy? Read pages 70-74 and be prepared to discuss in class.
Class Connection
Take vitals of volunteer students. (optional, 7 minutes)
Today we are actually going to be asking if our economy is healthy. Much like looking at different factors of your personal health, there are measurements in 5 different areas that we can check to see how are economy is faring.
Name a period in U.S. history of which you would not want to be a part.
Video 1
Objectives:
List and define the goals of a healthy economy
Explain how an economy is measured
Use online data resources to measure U.S. economy health
Goals of a Healthy Economy
increased productivity
decreased unemployment
maintain stable prices
Economic Measurements
1. Labor Productivity
invest in new equipment for more efficient work
additional training or financial incentives
reduce workforce
specialization and division of labor (ex: assembly line)
What government agency is responsible for reporting the U.S. GDP?
Why do you think the United States government switched from using the GNP to the GDP?
Inflation refers to rising prices. Give an example of economic inflation with a product that you purchase?
Why and how does the government sometimes try to discourage borrowing money?
Click on the following link to determine the U.S. inflation rate for 2015. U.S. Inflation Rate
Is the most recent year's inflation rate higher or lower than the previous year?
Is that good or bad?
Is the trend getting better or worse?
5. Unemployment Rate
The lower the unemployment rate , the greater the chances are of economic expansion.
More people working = more people spending money, paying taxes (less social services)
Click on this video link from 2012 as it brings up the idea of under-employed workers and how they skew the unemployment rate. Interesting to think about...
Ask each other the following questions and be prepared to share with the class:
Do you know anyone that is currently unemployed and actively looking for a job (no names please)?
How long have they been unemployed?
How do you think unemployment levels affect tax-payers?
Other Economic Indicators and Trends
The Conference Board (private business research organization)
consumer confidence index
consumer expectations index
job index (consumer's perceptions about jobs available)
consumer polling
retail sales
big purchases (housing, trucks, autos)
wages and new payroll jobs
Review What You've Learned
So back to the question that I posed in the opening assignment...
How can we measure the health of our nation's economy?
Answer the following questions on your paper: (5 points each)
What are the 3 goals of a healthy economy?
What are the 5 key economic measurements?
What indicator would you use to determine if employers were hiring more workers?
What is inflation and what does it tell us about the strength of our economy?
Since 2005 what 3 years had the highest inflation rate (in descending order starting with highest)?
Research Report
Prepare a one page essay over the topic listed below.
Must be typed, DS, 12 pt size font, Times New Roman
Due next class period.
Which of the above
economic measurements need a specific strategy for improvement for our current U.S. economy and why
(cite your reasoning)?
Rubric: 50 points available
10 -Formatting per instructions
10 -Grammar and punctuation
10 -Use of one of the discussed economic measurements (showing understanding of how measurement relates to the health of the economy
10 -Cite U.S. data and source of information in the report and as a footnote
10 - Headings: Title, "Dear Economic Doctor", Labeling of Report (see sample and checklist)
Standard 8: Explain the concept of economy, delineating between
micro and macroeconomic principles, and discuss how scarcity and factors
of production require nations to make economic choices. Compare and
contrast how the various economic systems (traditional, market, command,
mixed) try to answer the questions:"What to produce? How to produce
it? For whom to produce?"
Types of Economic Systems
Read pages 63-69 in textbook.
Nations must answer these three basic
economic questions about how best to use limited economic resources to
get the goods and services the country needs.
1. What goods and services should be produced?
2. How should the goods and services be produced?
3. For whom should the goods and services be produced and distributed?
Based on how countries answer these questions, economists have classified economic systems into three broad categories.
Traditional Economies
What to produce? little choice, what they need to survive using natural resources
How to produce? usually use simple, handmade tools and their ingenuity, learned from ancestors
Produce for whom? for themselves, any excess are traded among residents
Market Economies
Market economies are propelled by the rights of individuals and companies to produce and sell through competition without government involvement.
What to produce? consumers decide by purchases
How to produce? businesses decide by keeping costs low in hopes of producing high profits
For whom? people with money
Command Economies
A country's government decides what, how, and for whom goods and services will be produced.
Student Activity
After reading pages 65-69, with a partner create a PowerPoint presentation (Google Presentation) over one of the Political and economic philosophies listed in the section: capitalism, communism, socialism
Elements of the presentation: (55 points total)
Define the philosophy in your own words. (5 points)
What type of economic system does this fall under? traditional, market, or command economy (5 points)
List 3 countries that fall in that category.
For each country, create a slide that shows where that country is located on a larger map and an additional slides for the following questions (15 points)
What are it's economic resources? (5 points)
What is it's political philosophy and how long has that country practiced this philosophy? (5 points)
Who is it's leader (name) and what is his/her title (include picture)? (15 points)
Now that you've had a look at the different political philosophies and how they impact our economy, write a 1 page essay (+ sources page) about what is great about America from an economic perspective. Due at the end of class tomorrow. Persuasive Essay - Convince Me!
Rubric:
50 points total
15 -Length; Intro, three points, closing
5 -Grammar
5 -Domain-specific language
15 -Three different reasons that make America great
5 -Persuasiveness
5 - Cite 3 sources
Standard 8: Explain the concept of economy, delineating between micro and macroeconomic principles, and discuss how scarcity and factors of production require nations to make economic choices. Compare and contrast how the various economic systems (traditional, market, command, mixed) try to answer the questions:"What to produce? How to produce it? For whom to produce?"
Opening
What do you think is the coolest mascot for a team? Why?
Look at the picture of the bull on page 58.
Now look at DECA students in front of that same bull in the financial district of NYC.
If we are talking about our economy, why would a bull be presented in the financial district?
This goes back to our economy and hopes for our nation. If our economy is strong, who benefits?
Let's look at what creates an economy: Read pages 61-62 to gather some initial information.
What's an economy?
An economy, or economic system, is the organized way a nation provides for the needs and wants of its people. Countries with different economic systems have different approaches when making choices. From their resources available, they must determine how to provide for their own population... through manufacturing, buying, selling, transporting, and investing.
Micro vs. Macro
Micro View
Macro view
Macro View
Micro View
Macro
Micro
Now that you understand the concept of macro vs. micro as a prefix, try to think what how you would explain the concepts of macro-economics vs. micro economics...
Microeconomics vs. Macroeconomics: See the short video below to understand the difference between the two perspectives.
What are economic resources?
Economic resources (factors of production) are all the things used in producing goods and services. These factors of production include land (natural resources), labor (people who work), capital (goods used in the production process), and entrepreneurship (skills of people willing to invest time and money to run a company).
Scarcity
Scarcity is the difference between wants and needs and the available resources. Think of something that is very valuable. Take diamonds for example. Diamonds are very expensive because they are rare. There are not enough diamonds for everyone to have all they want (or need). They are scarce.
Now, think about a source that is seemingly unlimited, like air. Do we have all the air we need? Air is not as scarce as diamonds are. See the difference?
Now use the concept of scarcity to economic resources. Different economies have different amounts of economic resources. The U.S. has an abundance of entrepreneurs, and many natural resources, but it still cannot meet the needs and wants of all its citizens. Similar concepts are the same for all nations in different degrees.
Types of Economic Systems
Nations must answer these three basic economic questions about how best to use limited economic resources to get the goods and services the country needs.
1. What goods and services should be produced?
2. How should the goods and services be produced?
3. For whom should the goods and services be produced and distributed?
What do you think?
Preventing Green Fatigue - page 66 in textbook
Tired of ads about eco-friendly products? You may be suffering from green fatigue - confusion and skepticism caused by marketing claims about products' green benefits. Some of these claims are true. Others are examples of "greenwashing," or making a product sound more environmentally friendly than it is. In response to the rising tide of greenwashing, the Federal Trade Commission has developed rules about environmental claims. All claims, whether specific or implied (suggested), must be backed by scientific evidence.
On the worksheet labeled Preventing Green Fatigue...
1. select one of the products listed on the front and complete the front side of the worksheet.
2. Identify the (green) scientific evidence the company offers (on the package or its website), to support the claim. List evidence on the back of the worksheet. Explain in one paragraph whether you think the claim is valid. Be prepared to share your findings in class.
