Economics+T1

====Michael Connor Jacob Peyton DJ Brooke Stefan Rachel Ryan Chandler Grayson Jabari Ellis Simon Matt Dustin Ronnie //__**Freakonomics**__//====

Ideas on How to present
__**Skittles (Supply and Demand)**__

The class was divided into 6 groups. They were each given money. Group 1 $12 Group 2 $56 Group 3 $42 Group 4 $12 Group 5 $12 Group 6 $42

The class noted that since they saw that there were more or less of something that immediately affected the price. On the second buying round when the market was "flooded" with yellow and green skittles the prices fell dramatically. The class noted that competition from "richer" groups" tended to push the price up( Don't keep up with the Jones). Some noted that waiting till the "last" offer allowed for cheaper pricing(clearance).

__**To summarize, (supply & demand)**__
 * || Green || Yellow || Orange || Red || Purple || Other ||
 * 1 || 3/ 1.5 || 2/3/2.1 || 4 ||  || 6/30.0 ||   ||
 * 2 || 1.5/0.5 || 2 || 20/1.75 ||  ||   ||   ||
 * 3 || 2.5 || 10 || 3 ||  || 5 || 12 ||
 * 4 || 1.25/ 0.75 || 2.5/1 || 9/1.0 || 12 || 2 ||  ||
 * 5 || 1.5/2 || 2.5/3.2 || 3 || 2 || 6 ||  ||
 * 6 || 1.5 || 4 || 6 || 14 || 20 ||  ||
 * where there is more supply the price goes down. ( While demand stays the same or similar)
 * where supply decreased the price goes up. (While demand stays the same or similar)

What do you think happens to the price if supply increases and demand falls?


 * __Introductory Prices__** Why are these higher? Smaller production numbers, More desirable, limited quantity


 * __Production costs__** Inital start up is high, think of a classroom. Opening one for only a few students

__**Economies of scale**__ When you have a class and its half full or3/4 or full the costs are pretty much the same. The profits improve. (Is it worthwhile, how can I do more with what I have?)

__**Full capacity and Over capacity**__ You can't do more, then you have to start over with start up costs.

__**Monopoly**__ You have control of price and supply or simply the lack of competition.

__**Dominance**__ (usually positive) because the leader, the best, most desired, innovative, wanted, etc.

__**Marginal propensity to consume**__. Willy you pay more to get more. 50% off the next item, two for one, super-size me!

__**Ethics**__ Good habits, Good conduct, beliefs, morally correct, principled, distinguish right from wrong,

__**Business ethics**__ Pay on time and in full

__**Bad Ethics**__ Is paying late on purpose, disputing invoices, overcharging or repairing and replacing things that don't need fixing

__**Legal vs Ethical**__ Creating obsolescence, legal, yes, ethical?

__**Increased World production**__ Because companies produce more, things get cheaper. Since they are cheaper more people have things than before. This has let to a general worldwide improvement in living standards (what did your parents have growing up?) __//Consequences//__ //1) Exploitation of Labor. 2) Pollution, 3rd world countries don't have the same rules as in the developed world. 3) Depletion of resources.//

__**//Barter (Trading)//**__ Problems with bartering are that perhaps the person wanting to trade doesn't need what the other person wants or he doesn't need what the other person wants to trade. Also agreeing on how much to swap, trade or exchange might be tricky. Using someone else will just complicate things(swap a sheep for corn so you can get wood) What is needed? A common currency.

__**Getting money**__

From a bank...What will they ask you?
 * Do you work?
 * How much do you make?
 * Who do you work for ? (Wells Fargo - gas station?)
 * What job do you have(stunt driver- Bus driver)
 * What % of your salary is the debt?
 * What other bill do you have to pay?

So its pretty much all about RISK

__**Exchange Rates**__ (are also because of supply and demand.)

Lets say the US buys oil from Canada.

They buy 1,000,000 Barrels a day at $114 per Barrel They pay in USD so Canada has $114,000,000 Next, in the US the economy is tough. People buy smaller cars and as a result, they buy 800,000 Barrels a day. At $114 per barrel they lose $272,000. What do you think Canada will do? How does this affect their exchange rate?

__**To summarize, (supply & demand)**__
 * where there is more supply the price goes down. ( While demand stays the same or similar)
 * where supply decreased the price goes up. (While demand stays the same or similar)

What do you think happens to the price if supply increases and demand falls?

__**Euro Zone**__

Imagine SC, GA, VA and TN all used different currencies. What a pain it would be to go on vacation. That is pretty much what Europe faced. So they got together, agreed on what rates to use to make one new currency for all of them who would use the new money. Did it make it simpler, not only in Europe but for the rest of the world? The saying goes "Unity is Strength". How did this help them?

__**What do banks do?**__

Lend money & charge interest Take deposits and give interest Invest money Exchange money Issue Debit & credit cards Issue check books Provide Bill pay services

__**Economic models (In basic terms)**__


 * __Capitalisim__** Business is run and owned by private individuals. The money they make goes to them. (yes no tax for now) **What problems do you see?** What about the poor? What about services?

__**Free market**__Where prices are controlled by supply and demand, without government involvement (where would that be?) **What problems do you see?** What about controls?

__**Socialisim**__ (Pure Socialism) thought of by Robert Owen in the 1800's where a community worked for a common goal and shared the profits, co-operative ownership. What about people who don't pull their weight? What about those who work harder than others? Why work at all?
 * What problems do you see?**

Communism Economic model based on government control of jobs, and society. Everybody shares and every body is equal. Teachers and farmers and doctors all get the same "money" or supplies. School is free, doctors are free, food is free. So no money is needed! Choices are limited! What is the incentive to work hard?
 * What problems do you see?**

We looked at 3 places the U.S. India and Hong Kong their economies ran very differently. We saw that the easier it is to set up a business with less rules, the better people do. India is very socialist. HK was nearly free market and the USA was good because of its size and diversity of people. Immigrants like to set up businesses here.

__**Labor**__ We discussed what unions were for and what they are most like(socialist) They are supposed to help you not be treated badly, secure a good increase, help with benefits and defend you if you get fired. The union may strike or boycott if their "demands" aren't met. We agreed unions aren't good for business, they don't lead to higher quality or production. Even a teachers union or police union. Does it lead to better teaching or policing?

__**Salaries and jobs**__ We compared jobs and pay at a typical retail outlet.
 * Casier 16-18k per year
 * Supervisor 24k per year
 * Shift or Floor manager 35k per year
 * Store Manager 70-150k per year

We discussed why people who earn less might complain and join a union. We also saw that many jobs are being "out sourced". If skilled jobs are moved to another country at a much lower cost, them what must we do when looking for a job?
 * Job worries**

If something is made outside the US, we don't worry about Electricity, Tax, rent, insurance, health and saftey, water, electricity and much more. Not only that but we get the products cheaper. Some question are: Are the workers being treated fairly? Are they being payed enough? Do they work crazy hours? Do children do the work? Do we care? Do we just want cheap products?
 * Out Sourcing**