Advanced Economics Week #4 Spring 2012

Advanced Economics 4/16/12 OBJECTIVE: Examine consumer spending with credit cards. I. Administrative Stuff -Attendance -Journals 1-10 due tomorrow -Ch#10sec#4 & Ch#13sec(2-4) II. Journal#10 -notes Frontline: The Card Game Notice: 36 Days until the Senior’s Last Day!

Advanced Economics 4/17/12 OBJECTIVE: Begin examination of economic statistics. I. Journals 1-10 Due! II. Journal#11pt.A -Watch the following: -Indiana's RV Industry Starts a Comeback Amid Uncertain EconomyIndiana's RV Industry Starts a Comeback Amid Uncertain Economy III. Journal#11pt.B -notes on economic statistics Notice: 35 Days until the Senior’s Last Day!

Quote Everybody is a genius. But if you judge a fish by it's ability to climb a tree, it will go through it's whole life thinking it is stupid. ~Albert Einstein

Full employment When people work, they earn income for themselves while producing goods and services for others. CORRECTED.jpg

Economic growth Growth is needed so that people can have more goods and services. Since the nation’s population is likely to grow, economic growth is necessary to meet everyone’s needs. 29econ-f1-250x174.jpg

CPI Consumer Price Index – an index used to measure price changes for a basket of frequently used common items. The CPI reports on price changes for 90,000 items in 364 categories from 85 geographic areas of the country and are compared to their base year prices. Produce Price Index – measure price changes paid by domestic consumers for their inputs and is based on a sample of about 100,000 commodities and uses 1982 as the base year.

Midwest urban CPI Source:  U.S. Department of Labor Bureau of Labor Statistics Base Year  =100 YearCPI

Midwest Urban CPI

Midwest Urban CPI

Advanced Economics 4/18/12 OBJECTIVE: Examine the history of oil. I. Film: Modern Marvels, Oli -Answer questions while watching the film II. Study Hall -work quietly until the end of class Notice: 34 Days until the Senior’s Last Day!

Advanced Economics 4/19/12 OBJECTIVE: Continue examination of economic statistics. I. Journal#12pt.A -Watch the following: -Getting the Laffer Curve RightGetting the Laffer Curve Right II. Journal#12pt.B -notes on economic statistics Notice: 33 Days until the Senior’s Last Day!

CPI Consumer Price Index – an index used to measure price changes for a basket of frequently used common items. The CPI reports on price changes for 90,000 items in 364 categories from 85 geographic areas of the country and are compared to their base year prices. Produce Price Index – measure price changes paid by domestic consumers for their inputs and is based on a sample of about 100,000 commodities and uses 1982 as the base year.

Midwest urban CPI Source:  U.S. Department of Labor Bureau of Labor Statistics Base Year  =100 YearCPI

Midwest Urban CPI

Midwest Urban CPI

Organized Stock Exchanges NYSE – oldest, largest, and most prestigious in the U.S. Located on Wall Street in NYC AMEX – smaller stocks, those who can’t quite make it to the NYSE are traded here. (the JV team) Also located in NYC Regional Stock Exchanges – originally listed small companies and new companies. Now, they trade local stocks and better meets the needs of smaller companies. Located in: Chicago, Pacific, Philadelphia, Boston, and Memphis

Over-the-Counter Market OTC – most stocks in the U.S. are not traded on organized exchanges. They are traded electronically using NASDAQ NASDAQ – National Association of Securities Dealers Automated Quotation Few OTC stocks pay dividends. Most are small and new companies

Bull v. Bear Bull market – when stocks are strong and stock prices are rising Bear Market – when stock prices are falling

Advanced Economics 4/20/12 OBJECTIVE: Examine how human psychology and finance interact. I. Administrative Stuff II. Journal#13 -Take notes on the following film: -Nova: Mind over Money Notice: 32 Days until the Senior’s Last Day!