unit 1, chapter 2
TRANSCRIPT
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Daily Warm-Up
The lyrics of “I Want It All” remind us that there is a lot to do in one short lifetime. Freddie Mercury, Queen’s lead singer, asserts that he wants it all and he wants it now. Do you prefer to consume goods in the present or future? With reference to these lyrics, explain why individuals charge interest for deferring consumption.
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What are we doing today?Collecting journalsPresenting Songs (?)Unit 1, Chapter 2 lectureForming groups for major project 1
Research/Brain-stormingOutline #1 due
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Post Test StatsAvg. Grade:Avg. # of Students who did HW/Class:Avg. current grade of all classes:# of blog page-views: 1,614 # of blog posts: 111
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Unit 1, Chapter 2Comparing Economic Systems
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Schools of Economic ThoughtEconomists are influenced by personal
opinions, beliefs, and the institutions and governments under which they live.
This leads to different economic theories.Different schools of thought can have an
impact on laws and government policies.Judgments about economic policies depend
on a person’s values.Values and beliefs are characteristics that a
person or group considers important.The science of economics is not used
to judge whether a certain policy is good or bad.
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The Three Basic Questions
1) What goods and services should be produced?
2) How should they be produced?
3) Who will get the goods and how will they be distributed?
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Types of Economic Systems
Traditional EconomyCommand EconomyMarket EconomyMixed Economy
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“Hands On” vs. “Hands Off”“Hands Off”Market, Traditional
“Hands On”Command, Traditional
CompromiseMixed
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Traditional Economy
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Examples
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Command Economy
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Examples
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Schools of ThoughtCommunismSocialismFeudalismMercantilismCorporatism/Fascism
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Market Economy
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Examples
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Schools of ThoughtCapitalismGift economyMutualismCorporatism/FascismAnarchismMutualismNon-Property SystemSocialist Market Economy
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Econophysics One driving force behind econophysics
arising … was the availability of huge amounts of financial data, starting in the 1980s. It became apparent that traditional methods of analysis were insufficient - standard economic methods dealt with homogeneous agents and equilibrium, while many of the more interesting phenomena in financial markets fundamentally depended on heterogeneous agents in far-from-equilibrium situations.
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Econophysics – Economic System (Price)
Price of a commodity for every one of the 50x50 free-trading agents. Each agent has 8 neighbors. Note the spontaneous formation of a quasiparticle
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Econophysics – Money OwnedMoney owned by
every agent in a 200x200 agent free market simulation.Central part of the screen is composed of agents with different poverty threshold. Periodic boundary conditions.
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Econophysics – Price 2 Price of a dynamically
traded commodity for each one of the 200x200 agents in a free market economy. 4 Neighbors per agent. There are two 10x10 agent areas where agents have different poverty threshold than the rest. Due to the initial conditions, this generates two price waves.
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Econophysics - ResourcesResources
accumulated by each of the 200x200 agents in a free-market economy simulation. Phase transition is observed at iteration 1000 when the effective temperature is changed.
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Mixed Economy
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Schools of ThoughtDistributismGeorgismMercantilismPlanned MarketAmerican/Nordic/Japanese/French
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Tony Benn
Which economic system is Tony Benn arguing for?
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Group Project #1Anonymous peer evaluations
3 drafts/outlinesGroup presentationGroup wiki postIndividual research paper
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Group Presentation4 groups: command, traditional, free
market, and mixed economy.One question for each of the other groups.How does it answer the 3 questions?Describe 3 schools of thought in detail.Brief biography of two notable
thinkers/writers/economists: Adam Smith, Karl Marx, etc.
Describe any notable books/writings and why they are important. 3 quotes.
Current/Historical examples of this system. Successes, failures, etc.