Exploring+Business

1. Read Section 1.1
 * __Tuesday, September 7:__**

2, Complete the following assignment //Copy all work onto a new Word document. Once you have answered all questions using complete sentences, send as an e-mail attachment to jgrams@hlv.k12.ia.us//

**Reviewing What You Read** //Answer in complete sentences.// 1. Identify the three main participants in a business. 2. Identify the external factors that can influence a business. 3. List the five functional activities needed to run a business. Explain each area using complete sentences and your own words.

**Define** //in your own words://
 * business
 * profit
 * nonprofit organization
 * management
 * operations manager
 * marketing
 * accountant
 * finance

**Exercises** 1. The Martin family has been making guitars out of its factory in Nazareth, Pennsylvania factory for more than 150 years. In 2004, Martin Guitar was proud to produce itsmillionth instrument. Go to [|http://www.martinguitar.com] to link to the Martin Guitar website and read about the company's history. You'll discover that, even though it's a family-run company with a fairly unique product, it operates like any other company. Identify the main activities or functions of Martin Guitar's business and explain how each activity benefits the business.

2. Name four external factors that have an influence on business. Give an example of the way in which each factor can affect the business performance of two companies: McDonald's and General Motors.

__**Wednesday, September 8:**__ 1. Class discussion over Section 1.1 2. Read Section 1.2 3. Complete the following assignment //Copy all work onto a new Word document. Once you have answered all questions using complete sentences, send as an e-mail attachment to jgrams@hlv.k12.ia.us//

**Reviewing What You Read** //Answer in complete sentences// 1. What is economics? 2. What three questions do economists address? 3. What are the primary economic systems in existence today? 4. Explain the difference between the economic systems.

**Define** //in your own words//
 * planned system
 * free market system
 * competition
 * mixed market system
 * factors of production

**Exercises** 1. If you started a business that made surfboards, what factors of production would you need to make your product? Where would you get them? Where would you find the money you'd need to to pay for additional resources?

2. As economists try to answer the three key questions, will their answers differ depending on whether they're working in the United States or in Cuba? Explain your answer.

__**Monday, September 13 and Tuesday, September 14:**__ Exploring Economic Systems

__**Wednesday, September 15:**__ 1. Read **Section 1.3** 2. Complete the following assignment

//Copy all work onto a new Word document. Once you have answered all questions using complete sentences, send as an e-maill attachment to jgrams@hlv.k12.ia.us// 1. In a free market system, who sets product prices? 2. How are equilibrium prices reached in a competitive market?
 * Reviewing What You Read** //Answer in complete sentences//

//Define in your own words//
 * Define** //in your own words//
 * perfect competition
 * supply
 * demand

You just ran across three interesting statistics: 1. the world's current supply of oil is estimated to be 1.3 trillion barrels 2. the worldwide use of oil is thirty billion barrels a year 3. at this rate of consumption, we'll run out of oil in 43 years.
 * Exercise**

Overcoming an initial sense of catastrophe, you remember the discussion of supply and demand you read about in this chapter and realize that things aren't as simple as they seem. After all, many factors affect both the supply of oil and the demand for products made from it, such as gasoline. These factors will influence when (and if) the world runs out of oil. Answer the following questions and provide explanations for your answers: a. What's the major factor that affects the supply of oil? (Hint: It's the same major factor affecting the demand for oil.) b. If producers find additional oil reserves, what will happen to the price of oil? c. If producers must extract oil from more-costly wells, what will happen to the price that you pay to fill up your gas tank? d. If China's economy continues to expand rapidly, what will happen to the price of oil? e. If drivers in the United States start favoring fuel-efficient cars over SUVs, will gas be cheaper or more expensive? f. In your opinion, will oil producers be able to supply enough oil to meet the increasing demand for oil-related products, such as gasoline?

**__Thursday, September16:__** Supply and Demand worksheet - 10 Marketing Strategies Used for Beanie Babies

__Friday, September 17:__ 1. Class discussion over Section 1.3 2. Read **Section 4** 3. Complete the following assignment //Copy all work onto a new Word document. Once you have completed the work using complete sentences, send as an e-mail attachment to jgrams@hlv.k12.ia.us// 1. List the four types of competition in a free market system. Explain each type using complete sentences and your own words.
 * Reviewing What You Read**


 * Define** //in your own words//
 * monopoly
 * oligopoly

1. For each type of competition, explain the differences among them, and provide two examples of each. (Use examples different from those given in the reading.) 2. Search for and list one monopoly-like company or a company that owns at least 50% of the stock. 3. Search for and list three examples of oligopolies.
 * Exercise**

**__Monday, September 20____:__** 1. Class discussion over Section 1.4 2. Assignment //Send your typed responses as an e-mail attachment to jgrams@hlv.k12.ia.us// 1. The U.S. government outlawed monopolies at the end of the nineteenth century. Much has changed in American society between the 1890s and today. Among those changes is the infusion of computer technology. Not all of the innovations we take for granted today--the personal computer, the World Wide Web, e-mail, instant text messaging, podcasts, open-source materials, etc.--were widely available 10 years ago, let alone 110 years ago. You are to consider whether or not recent technological advances would make it easier and cheaper to start businesses. Think how these advances might affect the ability of individual companies to establish themselves as monopolies. Consider the influence that the technology available in recent years has had on firms seeking to establish themselves as monopolies. Do you think it is important for the U.S. government to continue to still have a law prohibiting the establishment of monopolies. Support your opinions.

2. Read the [|CNN article], "After Verdict Stings Microsoft, Gates Works Capitol Hill". Who is Thomas Penfield Jackson? What was his ruling last year in the case of U.S. vs. Microsoft? Why were Microsoft and the U.S. government in settlement talks? Why did these talks break down? How has this case affected consumers?

**__Tuesday, September 21:__** 1. Read **Section 5** 2. Complete the following assignment. //**Send all work to jgrams@hlv.k12.ia.us Use CPI in the Subject line**//

In 1976, the minimum wage was $2.30. How does the minimum wage in 1976 compare to the minimum wage in 2008? A house cost $83,000 to build in 1980? After adjusting for inflation, what would that house cost today? In this plan, you'll inflate prices from the 70s and 80s into prices today and compare the relative prices. In this lesson, you will find that the $2.30 minimum wage in 1976 would have to be approximately $12.63 to buy a comparable amount of goods in 2009. At the time this lesson was created, the minimum wage is $7.25. Are minimum wage workers better off now than they were in 1976 in terms of how much their wage can buy? Are new homes fairly priced relative to 1980? A house that cost $83,000 to build in 1980, (after adjusting for inflation) would cost $214,550 in 2009.

Using the computer, navigate to the St. Louis Federal Reserve Bank FRED database. Type "CPI" in the Search box; select "Consumer Price Indexes CPI"; select CPIAUCNS for "Consumer Price Index for All Urban Consumers: All Items. Download the data (Index 182-84=100) and save your desktop, the (S) drive, or to your flash drive.

Complete the worksheet "How Much Does It Cost Now?" Save the worksheet

Some products like the iPod were not invented in the 1980s. Discuss some of the limitations of making price comparisons between two time periods.


 * Can you calculate how much a $15 Walkman in 1979 would cost in today's prices? How does the price of a Walkman in 1985 compare to a $65 MP3 player in 2009? Suppose that you hear your father say that the minimum wage was $2.35 in 1977 when he was in high school. How does the minimum wage compare to the current $7.25 minimum wage in 2009?

When working with data from two different time periods, data must be compared data in the same terms. By using the formula in this lesson you can compare the prices of goods from two different time frames. This provides you with an historical sense of economic theory and its application and a comparison to the present.

**Assessment Activity:** 1. When John F. Kennedy became president in November, 1961, his salary was $100,000. After adjusting for inflation, what would we expect his salary be in 2009 dollars? 2. The price of a dozen eggs in January, 1981 was $.90. After adjusting for inflation, what can we expect a dozen eggs to cost in 2009 prices? 3. In April, 1989 the price of a first-class stamp was $.25. After adjusting for inflation, what would the stamp cost in 2009 prices?

__**Wednesday, September 22:**__ 1. Class discussion over CPI 2. Assignment:

Congratulations! You entered a sweepstakes and won a fantastic prize: a trip around the world. There's only one catch: you have to study the economy of each country (from the list below) that you visit, and identify the current phase of its buisness cycle. Explain your responses using a Word document. Send as an e-mail attachment to jgrams@hlv.k12.ia.us Use "**Business Cycle Analysis**" as the Subject.
 * //Country 1.// While the landscape is beautiful and the weather is superb, a lot of people seem unhappy. Business is slow, and production has dropped steadily for the past six months. Revenues are down, companies are laying off workers, and there's less money around to spend.
 * //Country 2.// Here, people are happily busy. Almost everyone has a job and makes a good income. They spend freely, and businesses respond by offering a steady outflow of new products.
 * //Country 3.// Citizens ofthis country report that, for a while, life had been tough; lots of people were jobless, and money was tight. But things are getting much better. Workers are being called back to their jobs, production is improving, and people are spending again.
 * //County 4.// This place makes you so depressed that you can't wait to get back home. People seem defeated, mostly because many have been without jobs for a long time. Lots of businesses have closed down, and those that have managed to stay open are operating at reduced capacity.

__**Thursday, September 23:**__ 1. Review assignment 2. Review for Chapter 1 test (Wednesday, September 22) 3. Time for WSJ articles

**__ Friday, September 24: __**
1. Test covering these topics: definitions of terms from all sections; participants of any business; factors of production; supply and demand (and prices) in a free market system; inflation; phases of the business cycle. 2. Time for WSJ articles - due 3:15