In-class work
- Indirect taxes' Effect on Supply - part 2
- Exercises 1-2 on page 99
- Exercises 3-7 on page 103-104 (HL Only)
- Calculating the Effects of a Specific, Indirect Tax (HL Only)
- Exercises 8-18 on page 107
- The Effects of a Per Unit Subsidy
- Exercises 19-23 on page 109
- Calculating the Effects of a Subsidy using Linear Equations (HL Only)
- Exercises 24-34 on page 112
- Determining the Effects of Price Ceilings and Price Floors
- Calculating the Effects of Price Controls using Linear Equations (HL Only)
- Exercises 34-46
From the blogosphere
Currently Reading
The Fourth Industrial Revolution
The first industrial revolution spanned from about 1760 to around 1840. Triggered by the construction of railroads and the invention of the steam engine, it ushered in mechanical production. The second industrial revolution, which started in the late 19th century and into the early 20th century, made mass production possible, fostered by the advent of electricity and the assembly line. The third industrial revolution began in the 1960s. It is usually called the computer or digital revolution because it was catalysed by the development of semiconductors, mainframe computing (1960s), personal computing (1970s and 80s) and the internet (1990s).
Mindful of the various definitions and academic arguments used to describe the first three industrial revolutions, I believe that today we are at the beginning of a fourth industrial revolution. It began at the turn of this century and builds on the digital revolution. It is characterized by a much more ubiquitous and mobile internet, by smaller and more powerful sensors that have become cheaper, and by artificial intelligence and machine learning.
Digital technologies that have computer hardware, software and networks at their core are not new, but in a break with the third industrial revolution, they are becoming more sophisticated and integrated and are, as a result, transforming societies and the global economy. This is the reason why Massachusetts Institute of Technology (MIT) Professors Erik Brynjolfsson and Andrew McAfee have famously referred to this period as “the second machine age” 2, the title of their 2014 book, stating that the world is at an inflection point where the effect of these digital technologies will manifest with “full force” through automation and and the making of “unprecedented things”.
Schwab, Klaus. The Fourth Industrial Revolution (Kindle Locations 113-127). World Economic Forum. Kindle Edition.
In-class work
- Peer review and mark ch. 3-4 assessments
- Indirect taxes' Effect on Supply - part 1
- The Effects of an Excise Tax - Elastic Demand (HL Only)
- The Effects of an Excise Tax - Inelastic Demand (HL Only)
- Exercises 3-7 on page 103-104
Currently Reading
Education for Sustainable Happiness and Well-being
Countless agencies, governments, and organizations have been dedicated to meeting even the most foundational schooling needs for children, and yet, as the United Nations Education, Scientific, and Culture Organization (UNESCO) reported in 2015, key global Education for All (EFA) goals that governments agreed to at the World Education Forum in Dakar in 2000 have not been attained, though some important headway has been made:
There has been tremendous progress across the world since 2000— but we are not there yet. Despite all efforts by governments, civil society and the international community, the world has not achieved Education for All.
On the positive side, the number of children and adolescents who were out of school has fallen by almost half since 2000. An estimated 34 million more children will have attended school as a result of faster progress since Dakar. The greatest progress has been achieved in gender parity, particularly in primary education, although gender disparity remains in almost a third of the countries with data. Governments have also increased efforts to measure learning outcomes through national and international assessments, using these to ensure that all children receive the quality of education they were promised.
And yet, for all this progress, 15 years of monitoring shows sobering results.
There are still 58 million children out of school globally and around 100 million children who do not complete primary education. Inequality in education has increased, with the poorest and most disadvantaged shouldering the heaviest burden. The world’s poorest children are four times more likely not to go to school than the world’s richest children, and five times more likely not to complete primary school. Conflict remains a steep barrier, with a high and growing proportion of out-of-school children living in conflict zones. Overall, the poor quality of learning at primary level still has millions of children leaving school without basic skills. (UNESCO 2015, p. i)
O'Brien, Catherine. Education for Sustainable Happiness and Well-Being (pp. 205-206). Taylor and Francis. Kindle Edition.
In-class work
- Work on ch. 3-4 commentary assessment
- Hand in hardcopy by end of class
Currently Reading
Education for Sustainable Happiness and Well-being
EDUCATION FOR SUSTAINABILITY
Education for sustainability is more than just a new curriculum. It is about how the content and process of education can be interwoven with real-life contexts to create opportunities for young people to take the lead in building sustainable communities and societies. Peter Senge (2014, p. 325)
Peter Senge (2014) recounts the story of 12-year-old Analise during a student presentation evening. There were 250 people gathered to hear about the students’ sustainability projects. Analise represented her group and briefly described the wind turbine project that she and her peers had created at their middle school. Installing the wind turbine had involved many of the steps that Zhao (2012) outlined in product-oriented learning, including a presentation to the principal and the town’s mayor, as well as garnering expertise from parents to explore engineering and investment options. The scope of the project itself is impressive. Even more impressive is her wisdom and courage to challenge the adult audience. Senge tells us that once her presentation was finished,
Analise set aside her notes and standing calmly, some 75 pounds of fierce determination said, “We children are often hearing that ‘you children are the future.’ We don’t agree with that. We don’t have that much time. We need to make changes now. We kids are ready, are you?” (Senge, 2014, p. 328)
Analise is absolutely right. We need to make changes now. Muddling along with small revisions to curricula here and there is drastically out of step with the pressing need for educators to demonstrate greater leadership in sustainability education. (p. 85)
In-class work
- Applications of Elasticity (PED, XED and YED)
- Find news article for practice IA assessment of ch. 3-4
- How to Structure an Economics IA
- Evaluation in Economics
- Sample Micro IB Economics IA
- Assessment Marking - See IA Rubric
- Ch. 3-4 practice commentary will be handed in at the end of next class (hardcopy)
From the blogosphere
Currently Reading
Education for Sustainable Happiness and Well-being
“Many of the arguments in favor of innovation build on the premise that the most innovative countries are also the most economically competitive. Hence, the need for education to shift from contributing to the older industrial model of economic development to the modern era where the knowledge economy is paramount. Discussions rarely make the connection to sustainability. Tony Wagner is an exception:
What we urgently need is a new engine of economic growth for the twenty-first century. The solution to our economic and social challenges is the same: creating a viable and sustainable economy that creates good jobs without polluting the planet. And there is general agreement as to what that new economy must be based on. One word: innovation. (Wagner, 2012, p. 2)
Wagner builds on the work of Teresa Amabile (1998) regarding creativity to discuss the factors that help to develop innovators. Both Amabile and Wagner see critical thinking, developing expertise, and motivation as the three key factors that interact with one another. Likewise, they both have the view that motivation is more important than expertise and creative thinking skills because this determines what you will do with the skills you have developed. They further distinguish between intrinsic and extrinsic motivation. Extrinsic motivation refers to factors outside oneself. It could mean that motivation comes from other people, a desire for approval, good grades, or fear of failure. Intrinsic motivation is more internal and is associated with interest, curiosity, satisfaction, a sense of achievement, and so on. Wagner believes that the essential ingredients for intrinsic motivation are play, passion, and purpose. This was borne out through his interviews with innovators.
As an interesting side note, positive psychologists have found that people who are intrinsically motivated tend to report greater life satisfaction, so there is an association between intrinsic motivation and happiness (Brown & Kasser, 2005; Kasser, 2014). For example, people who are extrinsically motivated tend to place greater value on popularity, social image, and financial success. In contrast, people who are intrinsically motivated are inclined to have values that contribute to their well-being or that of others." (pp. 60-61)
- Do you think schools operate with the above ideas as primary to their purpose?
- If no, how would schools operate differently if they did devote themselves to the above ideas?
In-class work
- Questions?
- Exercise 1 & 5-8 (p. 58 & 66)
- Exercises 9-13 (p. 70)
- Exercises 2-4 (p. 64)
- Market for Communication
- Elasticities
- Calculating and Interpreting Price Elasticity of Demand
- Exercises 1-3 (p. 75)
- Price Elasticity of Demand and the Total Revenue Test
- Exercises 4-7 (p. 82)
- Cross Price Elasticity of Demand and its Determinants
- Exercises 11-13 (p. 87)
- Income Elasticity of Demand
- Exercises 14-16 (p. 89)
- Price Elasticity of Supply and its Determinants
- Exercises 17-20 (p. 95)
- Applications of Elasticity (PED, XED and YED)
Currently Reading
Creating a Learning Society
"Even if there is more innovation under monopoly, however, it does not mean that welfare is higher. Society pays a cost, both today and in the future, from the monopoly distortions. Only if the dynamic [tomorrow's] benefits are large enough to offset the static [today's] distortions is monopoly preferable to a competitive equilibrium." (Kindle Locations 5757-5760)
In-class work
- Market Equilibrium, Disequilibrium and Allocative Efficiency
- Exercise 1 & 5-8 (p. 58 & 66)
- Consumer Surplus and Producer Surplus
- Exercises 9-13 (p. 70)
- A Supply and Demand Paradox - the Chevy Volt versus the Chevy Cruze
- Finding Equilibrium using Linear Demand and Supply Equations (HL Only)
- Consumer Surplus and Producer Surplus in the Linear Demand and Supply Model (HL Only)
- Exercises 2-4 (p. 64)
From the blogosphere
- Why are movie stars paid more than firefighters?
- Why Uber Is an Economist's Dream
Currently Reading
Creating a Learning Society
"We can now see the essential trade-off. If the government can induce a small shift in consumption [today] from [agriculture to manufacturing], then there will be a small decrease in welfare [today], but [the future's] production possibility curve will shift out, by an amount reflecting the increase in growth (enhanced learning) resulting from the increased industrial production, generating an [overall] improvement in welfare. Hence, welfare is unambiguously improved. It always pays for government to encourage the learning sector." (Kindle Locations 5545-5550)
In-class work
- Please exchange your macro commentary first drafts with each other and peer review them
- Leave them on my desk before you leave
- Continue studying ch. 19
In-class work
- Questions?
- Assessment
