Chapter+3+-+Economic+Environment+of+Business

**__ Thursday, October 6: __**
1. Read pages 57 - 61 2. Complete the assignment:

//Put all work into your Google folder. Use an appropriate label for your work.// 1. How does an economic want differ from a non-economic want? Give an example of each. 2. Explain the four most common types of utility and the four basic factors of production. 3. What is the difference between capital goods and consumer goods?
 * Reviewing What You Read: **

**__ Friday, October 7: __**
1. Read page 61 - 71 2. Complete the assignment:

//Put all work into your Google folder. Use an appropriate label for your work.// 1. How is a market economy different from a command economy? 2. Compare capitalism, socialism, and communism as to (a) how each allocates scarce resources among alternative wants (b) the existence of private property 3. Is the profit earned by business usually overestimated or underestimated? Why? 4. What feature of a free enterprise system helps keep the prices of goods and services down? 5. List three examples of non-price competition.
 * Reviewing What You Read: **

1. Analyze Information #3 (page 79)
 * Exercise: **

**__ Monday, October 10 : __**
Click on the link below to find your assignment
 * Exercise **
 * Comparing Economic Systems**

__** Friday, October 14: **__
1. Read pages 71 - 76 2. Complete the assignment:

//Put all work into your Google folder. Use an appropriate label for your work.// 1. How does the government measure economic growth? 2. List three problems that can occur within an economy when the growth rate is too fast or too slow. 3. List three devices used by the government to control economic growth.
 * Reviewing What You Read: **

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.
 * Exercise: **

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, Google Docs, 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. //List// //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.

1. When John F. Kennedy became president in November, 1961, his salary was $100,000. //After adjusting for inflation, what would his salary have been in 2009 dollars?//
 * Assessment Activity: **

2. The price of a dozen eggs in January, 1981 was $.90. //After adjusting for inflation, what would a dozen eggs 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 have cost in 2009 prices?//

__ **Tuesday, October 18:** __
**Exercise** You just ran across three interesting statistics: 1. the world's supply of oil is estimated to be 1.3 trillion barrels 2. the worldwide use of oil is approximately thirty billion barrels a year 3. at this rate of consumption, we'll run out of oil in 43 years.

Overcoming an initial sense of catastrophe, you remember reading about supply and demand in your Intro to Business class 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?//

__ **Wednesday, October 19 - Thursday, October 20:** __
Supply and Demand worksheet - 10 Marketing Strategies Used for Beanie Babies

**__ Friday, October 21: __**
Review for test.