Assignments

Unit I. The Free Market System A. Economic Systems IN CLASS: Scarcity, or Why do diamonds cost more than water?
 * __Assignment 1__: (Due:3/24 ) Current Event on Resources. Bring in a current event article about a particular resource. Read your article and answer the following questions about it: (To be collected. 15 points)**
 * 1.** **What is the resource being discussed? Is it scarce?**
 * 2.** **How is this resource valued?**
 * 3.** **How is this resource allocated? In your opinion, is this the best way to allocate that resource?**
 * __Assignment 2:__ (Due: 3/24 ) Read Chapter 2 in //EFE.// ANSWER The following questions IN YOUR OWN WORDS:**
 * 1.** **Explain the differences among a traditional economy, a market economy, and a command economy. Give an example of each NOT in your book.**
 * 2.** **List advantages and disadvantages of a command economy.**
 * __Assignment 3:__ (DUE 3/25) READ Chapter 3 in //EFE//. ANSWER The following questions IN YOUR OWN WORDS:**
 * 1.** **Describe the key characteristics of a free market economy.**
 * 2.** **Define GDP. What is the number used for?**
 * 3.** **How is the US economy a “mixed market economy”?**
 * 4.** **What is meant by “the invisible hand”?**

B. Market Forces IN CLASS: Based on your current knowledge, give common-sense definitions for as many of the following as your can. DO NOT LOOK THESE UP. · Market · Resource · Capital · Supply · Demand · Price · Surplus · Shortage

IN CLASS: Supply Curves and Demand Curves

IN CLASS: Market Failures //IN CLASS: TERMINOLOGY QUIZ (4/21)//
 * __Assignment 4:__ (Due 4/15) READ Chapter 4 in //EFE//. Answer 6 of the “What Will Happen” questions on p. 67 and all of “Graphing Supply and Demand” on p. 68. To be collected, 30 pts.**

C. Credit

====**__Assignment 4__: (Due 10/22) Go to “Choosing a Credit Card” at [|www.federalreserve.gov/pubs/shop/default.htm]. Define the following terms in your own words, and explain how each should affect your choice of credit card:** ==== 1. APR 2. Fixed rate 3. Variable rate 4. Grace period 5. Cash advance 6. Credit limit 7. Disclosure box **8. Pick 5 different fees and explain each.** IN CLASS: Choosing a Credit Card IN CLASS: Making Wise Credit Choices IN CLASS: Identity Theft

IN CLASS: COLA, anyone?
//QUIZ: 11/3//

Unit III. Global Economic Systems  IN CLASS: Who Benefits When You Buy an I-Phone? A. Global Trade IN CLASS: PPF’s and comparative advantage ****__ Assignment 3: __**** (Due: 6/1) Read Chap. 32 in //EFE//. Answer the following IN YOUR OWN WORDS: ** ** 3. ** **Explain the trade functions of the following: ** IN CLASS: Debate on Free Trade // QUIZ: ­­­­­­­­­­­­­­­­6/14 //
 * __ Assignment 1 __****: (Due: 5/26) Read Chapter 31 in //EFE//. ANSWER the following questions IN YOUR OWN WORDS: **
 * 1. ****A candidate for public office runs on a platform of economic self-sufficiency, that the US should be able to produce all of its goods and services in the US. He calls his plan “The Patriotic Economy.” His message is popular in these tough economic times, and he gets a lot of attention on talk radio and cable news talk shows. Explain why he is unlikely to get much support from people who have studied economics. **
 * 2. **** Explain absolute advantage and give an example. **
 * 3. **** Explain comparative advantage and give an example. **
 * 4. **** Should outsourcing be seen as a problem? Explain **
 * __ Assignment 2: __**** (Due: 6/4) Worksheet on Comparative Advantage (see attached) ****. To be collected. 30 pts.
 * 1. **** Explain why countries regulate trade. **
 * 2. **** Explain four tools for regulating trade. **
 * a. **** WTO **
 * b . **** EU **
 * c. **** NAFTA **