Teaching Economics Using Media & Active Learning October 19, 2013 CHARITY-JOY ACCHIARDO & G. DIRK MATEER

Teaching Economics Using Media & Active Learning

October 19, 2013

CHARITY-JOY ACCHIARDO & G. DIRK MATEER

Music and Economics

http://www.poemhunter.com/poem/the-road-not-taken/

Ben Stein,The Face of Economics?

Ferris Bueller’s Day Off

T-mobile commercial

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Part 1THE ECONOMIC WAY OF THINKING

Scarcity

How do we decide what to do/buy?

How do you travel?

THINK-PAIR-SHAREHow would you solve the previous

example if you do not know the value of the person’s time?

Try to work this out yourself. (1 min)

When I give the signal, form a small group

(2-3 people) and share your answers. Write up your solution.

The Road Not Taken – Robert Frost

Two roads diverged in a yellow wood, And sorry I could not travel bothAnd be one traveler, long I stoodAnd looked down one as far as I couldTo where it bent in the undergrowth.

More practice!

What is your opportunity cost of attending the 1D concert?

A.$0 (applaud) B. $65 (bark) C. $135 (cough) D. $200 (whistle)

$200

$135

Incentives

Incentives

Good intentions do not guarantee desirable outcomes!

Unintended consequences

Marginal ThinkingMB > MC

Making Decisions on the Margin

The Diamond-Water Paradox

Don’t confuse total value with marginal value!

Law of Diminishing

Marginal Utility

Why do pop singers typically make more

than top nurses?

>

Efficiency

Part 2EXCHANGE AND TRADE

Voluntary Exchange

The Trading Game

Trade Involves Opportunity Costs

Comparative Advantage & Trade

Should LeBron James clean his own house?

Comparative Advantage & Trade

Where did your shirt come from?

Poll

Discussion

Where do cottont-shirts come from?

Private Property Rights

What Makes eBay Work?

The Fishing Game

Fishing Game

(1) There are four contestants. Choose your champion!

(2) The game is divided into two rounds:(a) The first 30 seconds:

- gold jingle bells are worth $0.01.

- purple jingle bells are worth $0.05.

- blue jingle bells are worth $0.10.

- silver jingle bells are worth $0.25. (b) The second 30 seconds:

-gold jingle bells are worth $0.02.

-purple jingle bells are worth $0.10.

- blue jingle bells are worth $0.20.

- silver jingle bells are worth $0.50.

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Part 3SUPPLY AND DEMAND

WHAT’S YOUR PRICE?

What is the most you would pay to see a concert

(favorite artist, best seats, etc…)?

The Law of Supply

What amount of money would be necessary to

get you to perform karaoke for us right now?

Equilibrium Experiment

Buy low, Sell high

You have 15 minutes

Carefully record all transactions

You may not use violence to force a trade

Do not trade fractional units

Grab a slip and start trading!

Questions? Just ask!

The Market is Open

Time Left:

www.online-stopwatch.com

DECODING THE MYSTERY

Hard to Find (shortage)

In Equilibrium Easy to Get (surplus)

The Hudsucker Proxy

Price Ceilings: A Thought Experiment

THINK-PAIR-SHARE 1. Will there be more or less for sale?

2. Will this cause a shortage or a surplus?

3. Will the size of a typical roll increase or decrease?

4. Will the quality rise or fall?

5. Is there a way to rename the good to avoid the law?

6. Could you tie the purchase of the TP to another (more expensive) good?

7. Will there be an increase in self sufficiency?

8. How will politicians handle attempts to circumvent the new law?

9. Will the opportunity cost of finding TP rise or fall?

10. Would you buy illegally produced TP?

11. Will the new law cause more or less discrimination in society?

12. Who are the winners and losers?

Part 4THE ROLE OF PROFITS & LOSSES

SEINFELD – CAFÉ FAILURE

IT’S ALWAYS SUNNY IN PHILADELPHIA – Kitten

MIttons

Entrepreneurship & Wealth Creation

Entrepreneurship & Wealth Creation

What do tennis balls have to do with

economics?

Entry INTO Markets: Harbucks

I LOVE LUCY – The Diner

The Dynamic Nature of Change

Allowing products to fail (or be

replaced through innovation) allows for creative

destruction to take place.

Ben & Jerry’s Ice Cream Graveyard

Part 5PRICE DISCRIMINATION

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How Do Airlines Make Higher Profits?

What should a firm do if it

can only charge one price?

I need five volunteers!

What happens if the firm is able to price discriminate?

When firms price discriminate, they earn more profit and also serve more customers!

$

Perfect Price Discrimination

Season Ticket Holders Get Better Deals

Differentiating Your Customers

Next Restaurant

Pricier hotels - Mac or PC?

Price Discrimination Quiz

Are the following situations examples of price discrimination?

Yes: Cheer No: Boo


Bart and Lisa go to a club. Bart has to pay a cover charge for entry, but Lisa gets in for free due to a “Ladies’Night” special.

YES! This is price discrimination.

The product is the same, and the price difference has nothing to do with cost differences.


At Little Nero’s Pizza, the menu lists the following prices: Cheese pizza = $ 8 Supreme pizza = $11

NO! This is not price discrimination.

The price difference exists in part due to cost of production differences.


Lisa buys an economy class airline ticket for $400

and Bart buys a first-class ticket for $800.


Bart may get extra drinks and food which are additional costs to the airline. Bart also gets a comfy seat and more

legroom.


Lisa and Bart both buy an economy class ticket on the same flight. Lisa pays $83 less than

Bart because she booked 2 weeks earlier.



Jaime gets her oil changed at Cars N’ Stuff for $30 and Katie gets her oil changed at Automotives Incorporated for

$25.



Two firms are offering different products. There may be quality

and cost differences.

Joe and Sheila each buy a ticket to the ballet and sit together. Joe paid $5 less than Sheila because of a student discount.




Flagstaff, gas price = $3.29

Tucson, gas price = $3.42



Costs may be higher to get gas to Tucson.

Mark and JoAnn each buy one box of cereal at the local grocery store. JoAnn gets a $1.00 discount by using a coupon.




Part 6REALLY COOL RESOURCES

M E M E S

Let’s go to the site!

Pinterest Economics

Kim Holder

www.economicsoftheoffice.com

www.criticalcommons.org

(more clips)

Joe Calhoun (a variety of very useful clips)

Adrian Fohr (film and tv clips)

Brian O'Roark (music animations)

dirkmateer

Why do people trade?

Documents

Teaching Economics Using Media & Active Learning October 19, 2013 CHARITY-JOY ACCHIARDO & G. DIRK MATEER