Using incentives People respond to incentives. If an incentive is not achieving its desired outcome then increase and/or change the incentive.

Obamacare Why are so many people opposed to Obama’s Health Care Act.

The Free Transaction What is the Free transaction and why is it important?

All Americans will be REQUIRED by law to purchase health insurance.

Incentives The President claims that his plan will give 37 million Americans healthcare He extends coverage to adult children His plan will give all women “free” birth control Obama says that under his plan, you can keep your current healthcare. And it will not cost us more!!!!

Is it possible to extend healthcare to 37 million people at no additional cost?

Is it possible for the President to mandate “children” under the age of 26 be covered on their parents healthcare.

Can birth control be “Free”?

Under Obama care, private business will be fined $2,000 if workers do not have healthcare. They must also pay a 40% tax if the healthcare is too “expensive”

If the cost of healthcare is more than $2,000 what will some businesses do? If the government is going to tax “expensive” healthcare what will be the result?

The incentives Since it will be cheaper to pay the fine, many businesses will cancel their workers’ healthcare plans. Since expensive plans will be taxed business will have a disincentive to continue this coverage as well. So much for keeping your private coverage!

What will happen to our healthcare? It depends? Will Obama be reelected? Will he have a republican president? Will the US have a Democratic or Republican Congress? What will happen will depend on the rules and incentives we have in the future

Our Healthcare Under Obamacare

Ethanol What is ethanol? A fuel made using petroleum and corn.

Why does the government want to “encourage” the use of ethanol? The government is “mandating” that an increasing percentage of our gasoline contain up to 15% ethanol.

Incentives To encourage use of ethanol the government has… Passed laws mandating its use in gasoline. Provided billions in subsidies to produce ethanol Banned the use of sugar ethanol which is more efficient

Fossil Fuels What is the problem in continuing to use fossil fuels? How likely is it that we can replace fossil fuels using solar, wins, and other “earth friendly” sources of energy?

Are we running out of fossil fuel? Obama likes to say that the US has only a small percentage of the world’s proven reserves. That is true but what is also true that he chooses not to talk about?

states that depend on coal for jobs and affordable electricity,” said Mike Duncan, president and CEO of ACCCE, in a statement.statement However, ACCCE notes that EPA policies may have played a role more than 4,800 megawatts of announced closures not included on in their report which would bring total shutdowns to 241 coal generator in 30 states — more than 36,000 MW of electric generation or 11 percent of the U.S. coal fleet. Read more: fired-generators-slated-for-shutdown/#ixzz27LMazZmGhttp://dailycaller.com/2012/09/21/report-more-than-200-coal- fired-generators-slated-for-shutdown/#ixzz27LMazZmG Report: More than 200 coal-fired generators slated for shutdown 11:29 PM 09/21/2012 ADVERTISEMENT Within the next three to five years, more than 200 coal-fired electric generating units will be shut down across 25 states due to EPA regulations and factors including cheap natural gas, according to a new report by the American Coalition for Clean Coal Electricity (ACCCE).200 report “This is further evidence that EPA is waging a war on coal, and a war on affordable electricity prices and jobs. EPA continues to ignore the damage that its new regulations are causing to the U.S. economy and to affordable

Intro to Factors of Production

New Key Terms Factors of production: The resources required in the production of all goods and/or services. Land: Natural resources used to produce products. Labor: The physical efforts of individuals used to produced products. Capital: Human made resources used to produce products.

Physical Capital: Man made resources used to produce products. Human Capital: The knowledge and skills gained by experience or from education.

Additional Key Terms Factor Market: Where businesses secure the factors of production from households. Product Market: Where households secure products (goods and/or services) from businesses Intermediaries: Third parties such as banks, and government agencies that help facilitate market transactions Factor Payments: The payments households receive in the factor market for selling the factors of production.

Additional Key Terms Factor Market: Product Market: Factor Payments: Intermediaries: Third parties that play a role in facilitating the transactions that occur in a market.

PBS Galvez Papers

Grandmother’s Passporte

My Father’s Birth certificate My father was Christobal Lopez Galvez

Thinking at the Margin Why am I not overly concerned about cuts in the amount of Homeland Security funds going to New York City?

How does this cartoon illustrate the relationship of possibilities/ probabilities and thinking at the margin?

Can you use the concept of “thinking at the margin” to explain why Michael Phelps was so happy about the number of gold medals that he won in the last Olympics?

Specialization