Welcome to Unit 2! BUS 204: Macroeconomics My name is Vilma Vallillee and I’ll be your instructor for this course! Just a little about me: I just moved

Welcome to Unit 2! BUS 204: Macroeconomics

My name is Vilma Vallillee and I’ll be your instructor for this course!

Just a little about me:

I just moved from San Diego, CA to Traverse City, MI (I hear that there will be a lot of snow this year!)

I’m an economist for the jewelry and diamond industry…

I love chocolate!

I’m Italian!

I love economics.

Freakonomics is my favorite book!

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Rules/ Procedures

1)In order to obtain 15 points you must stay for the entire hour. If you can’t make the seminar, please consider doing the ‘optional’ assignment instead.

2)If you are experiencing technical difficulties, please do not post your frustrations in the chat session. Call technical support immediately (I can’t assist with technical issues, but technical support can help)

3)Please keep all of your questions until the end of the seminar (Answering a question during the seminar with 38 students in a seminar delays the seminars substantially)

4)The chat area is used ONLY for chat related comments. Please refrain from posting any non-course related material.

5)Please have a copy of the discussion and assignment (We will be discussing both the discussion and assignment-- please review before the seminar)

6)Please do not come to the seminar with the intention of just getting answers. I will be covering specific points on the homework assignment/ discussion...not all.

7)Participation is key! I’m going to be asking a number of questions during the seminar and we would all like to hear from you!

•Please be sure to do your reading before the seminar. It is almost impossible to follow along within doing the reading.

1)You have the option to download the powerpoint that are located under ‘doc sharing’ 2 hours before the seminar begins...then follow along & take notes.

2) Have fun and enjoy!!

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Announcements

• Introductions• Wikipedia/ Investopedia• Late Policy• Week One- Seminar (15 points)• Syllabus (Print It)

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Syllabus1) READ AND PRINT off the syllabus (there are times when you cannot access your online class and need to know specific information)

2) Each week begins on Wednesday (except for this week) and ends on Tuesday

3) Initial postings for each discussion forum is due on Saturday

4) Postings after Tuesday per discussion forum is not permitted

5) Rubrics are used when grading discussions and assignments for this class

6) The virtual office is a public area where questions/ answers will be viewed by the instructor and other students

7) The late policy will be enforced for any late discussion/ assignments

8) The textbook for this classroom will be in the form of an e-book and is available in the 'doc sharing' area of the course

9) All seminars take place on Wednesday @ 9pm for this course are graded-- if you cannot make a seminar, there is also an optional assignment for you to do.

10) Weekly grades are posted on Sunday evening of the following week4

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Assignments1) Please use the template that is given to you for each weekly assignment

2) EVERY assignment needs to include a title page and reference page IN ADDITION to the template

3) Listing your references at the end of the assignment is not sufficient. You must integrate research into your paper in order to validate and justify your points.

This means in-text citations within your paper.

4) One- two line answers are not acceptable. You MUST provide sufficient explanation to your answers. -- There is not a max. amount of words, rather QUALITY driven answers. Numerical answers must show the 'process' ... Just stating the numerical answer is not sufficient.

5) Don't wait until the last minute to do your assignment (this means the day before, Tuesday...). Assignments are made available at the beginning of the week, covered in detail during the seminar (Wednesday) and due on Tuesday. ** Please note that assignment are covered on Wednesday's seminar, but I do leave some components of the assignment for you to do on your own (can't give away everything!).

6) Emails that are sent to me on Tuesday with questions about the assignment and use the excuse "I didn't get a reply until Wednesday, so it is late" are disregarded. Remember, you had one week to do the assignment.

7) Wikipedia and Investopedia are not reliable sources for academic papers. I would suggest using the online library... (and YES, every assignment needs to have 1-2 reliable references)

8) You can use Live Seminars and Weekly Discussions as references. Just be sure to use the last name of the person and the date of the seminar/ discussion.

9) Double space your answer

10) Try to integrate YOUR personal / subjective opinion into the assignments- Subjectivity is just as important as objectivity.

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DiscussionsThe Discussion Board Requirement:

•Students are to post a minimum of three posts per discussion thread. One initial response and two replies to their classmates

•Posting on a minimum of three different days, for example: Wednesday, Friday and Monday

•The first initial response to the discussion question must be made by Saturday.

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RubricsAssignment Rubric

2.5/12.5 Content, Focus, Use of Text/Research

7.5/7.5 Analysis and Critical Thinking

5/5 Writing Style,Grammar, APA Format

Discussion Rubric

10/10 Quality

7.5/7.5 Participation

5/5 Clarity and Organization

2.5/2.5 Netiquette

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Welcome to Unit 2: Economic Models: Tradeoffs

and Trade Agenda:

Welcome

Review of Unit 1

Questions

Discussion of Unit 2

Questions

Important points

Preview of Unit 3

Questions

Dismissal

Slide 2

Scarcity

Slide 4

Opportunity Costs

?

Slide 5$ ? $

Trade-offseither, or

Slide 6Costs vs Benefits

MARGINAL COST ANALYSIS

How much for a little bit more? Is it worth the cost?

Slide 7

Slide 9

Unit 2: Economic Models: Tradeoffs

and Trade Agenda:

Welcome

Review of Unit 1

Questions

Discussion of Unit 2

Questions

Important points

Preview of Unit 3

Questions

Dismissal

Slide 10

Slide 35

36

Tom’s Trade-offs: The Production Possibility Frontier

Slide 36

37

Increasing Opportunity Cost

Slide 37

38

Economic GrowthProduction is initially at point A (20 fish and 25 coconuts), it can move to point E (25 fish and 30 coconuts).

Slide 38

39

Economic GrowthEconomic growth results in an outward shift of the PPF because production possibilities are expanded.

Slide 39

41

Comparative Advantage and Gains from Trade

Ex.: Tom and Hank

Slide 41

42


Ex.: Tom and Hank

Slide 42

43

Tom and Hank’s Opportunity Costs of Fish and Coconuts

Tom’s Opportunity Cost

Hank’s Opportunity Cost

One fish 3/4 coconut 2 coconuts

One coconut

4/3 fish 1/2 fish

Slide 43

44

Specialize and Trade

•Both castaways are better off when they each specialize in what they are good at and trade.

•It’s a good idea for Tom to catch the fish for both of them, because his opportunity cost of a fish in terms of coconuts not gathered is only 3⁄4 of a coconut, versus 2 coconuts for Hank.

•Correspondingly, it’s a good idea for Hank to gather coconuts for the both of them.

Slide 44

45


Ex.: Tom and Hank

Slide 45

46


Ex.: Tom and Hank

Slide 46

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How the Castaways Gain from Trade

Both Tom and Hank experience gains from trade: Tom’s consumption of fish increases by two, and his consumption of coconuts increases by one. Hank’s consumption of fish increases by four, and his consumption of coconuts increases by two.

Slide 47

48

Comparative vs. Absolute Advantage

•An individual has a comparative advantage in producing a good or service if the opportunity cost of producing the good is lower for that individual than•for other people.

•An individual has an absolute advantage in an activity if he or she can do it better than other people. Having an absolute advantage is not the same thing as having a comparative advantage. Slide 48

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Tom vs. Hank—Absolute vs. Comparative

•Tom has an absolute advantage in both activities: he can produce more output with a given amount of input (in this case, his time) than Hank.•But we’ve just seen that Tom can indeed benefit from a deal with Hank because comparative, not absolute, advantage is the basis for mutual gain.•So Hank, despite his absolute disadvantage, even in coconuts, has a comparative advantage in coconut gathering.•Meanwhile Tom, who can use his time better by catching fish, has a comparative disadvantage in coconut-gathering.

Slide 49

Slide 50

Circular Flow Diagram

Slide 51

You

WalMart


Slide 52

You

Market for labor (your

work)

WalMart

Go to work


Slide 53

You


work)

WalMart

Go to work

Stock shelves


Slide 32

You


work)

WalMart

Market for goods &

services (what you buy)

Go to work

Stock shelves

Things to sell


Slide 33

You


work)

WalMart

Market for goods &


Go to work

Stock shelves

buy things

Things to sell


Slide 34

You


work)

WalMart

Market for goods &


Go to work

Stock shelves

buy things

Things to sell

Spend money to buy things


Slide 57

You


work)

WalMart

Market for goods &


Go to work

Stock shelves

buy things

Things to sell


Pay money to WalMart


Slide 58

You


work)

WalMart

Market for goods &


Go to work

Stock shelves

buy things

Things to sell



WalMart buys labor

& inventory


Slide 59

You


work)

WalMart

Market for goods &


Go to work

Stock shelves

buy things

Things to sell



WalMart buys labor

& inventory

WalMart pays you

39

Discussion

• Since all economies are faced with scarcity, how might nations attempt to minimize the human hardship associated with scarcity? Try to use concepts seen in this unit such as production possibilities frontier, comparative advantage, circular flow, etc. in your answer.

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Assignment

• Draw the demand curve and the supply curve for Belgium cocoa beans. What are the equilibrium price and quantity of cocoa beans from Belgium?

• What is the demand schedule for Belgium cocoa beans now that U.S. consumers can also buy them?

• If the price of an additional serving of chicken nuggets is $3, how many servings will Nina buy for Braden? How much consumer surplus does he receive?4

0

Slide 60

0

PRICE

D1

D1

Q U A N T I T Y

S1

S1

Pe

Qe

Slide 70

Unit 3: Supply and Demand

Slide 71

Contact information:

Vilma Vallillee, Ph.D

[email protected]

The following are my AOL IM office hours: AOL IM name: vilmavallillee Wednesday 9:30-10:30 am Eastern Time Friday 9:30 - 10:30 am Eastern Time

You can always e-mail me anytime. I will reply to your e-mail within 24 hours. Also, you can call me Monday- Sunday from 9am-9pm EST. If you leave a voice message, please be sure to indicate your full name, student number and the course name.

If you have any questions, you can always call or e-mail me! I'm here to assist you and make your online Kaplan experience an exceptional one!

T H A N K Y O U

F O R

A T T E N D I N G

SEE YOU IN THE DISCUSSION THREAD QUESTIONS

AND IN NEXT WEEK’S SEMINAR

Slide 73

Documents

Welcome to Unit 2! BUS 204: Macroeconomics My name is Vilma Vallillee and I’ll be your instructor for this course! Just a little about me: I just moved