- News article sharing and discussion
- Measuring GDP using the Income Approach and the Expenditure Approach - HD
- Exercises 1-3 p. 239
- Exercises 4-7 p. 241
From the blogosphere
Monday, October 31, 2016
G11 - Week 11 - Day 2
In-class work
Saturday, October 29, 2016
G11 - Week 11 - Day 1
In-class work
- Introduction to Macroeconomics
- Micro IA discussion
- Peer marking of ch. 5-6
- Find news article from ch. 1-6 topics
From the blogosphere
Thursday, October 20, 2016
G11 - Week 10 - Day 2
In-class work
- Study time
- Ch. 5-6 assessment
Upcoming
- Make sure to be reading news sources and collecting real-life examples of market failures
From the blogosphere
Currently Reading
Debt: The First 5,000 Years
The definitive anthropological work on barter, by Caroline Humphrey, of Cambridge, could not be more definitive in its conclusions: “No example of a barter economy, pure and simple, has ever been described, let alone the emergence from it of money; all available ethnography suggests that there never has been such a thing.” (Kindle Locations 662-664)
The definitive anthropological work on barter, by Caroline Humphrey, of Cambridge, could not be more definitive in its conclusions: “No example of a barter economy, pure and simple, has ever been described, let alone the emergence from it of money; all available ethnography suggests that there never has been such a thing.” (Kindle Locations 662-664)
Tuesday, October 18, 2016
G11 - Week 10 - Day 1
In-class work
- The Tragedy of the Commons as a Market Failure
- Visualizing the Tragedy of the Commons
- Exercises 4-6, page 140
- Exercises 7-10, page 143
- Asymmetric Information as a Market Failure - part 1 (HL Only)
- Asymmetric Information as a Market Failure part 2 (HL Only)
Upcoming
- Ch. 5-6 assessment on Thursday, October 20th
- Make sure to be reading news sources and collecting real-life examples of market failures
From the blogosphere
Currently Reading
Other People's Money: The Real Business of Finance
The individualistic ethos of the era of financialisation has affected wealth transfer over time in other ways. The American economist Laurence Kotlikoff created the concept of ‘intergenerational accounting’ to describe the government’s transfer of wealth over time. 15 The journalist Tom Brokaw coined the phrase ‘the greatest generation’ to describe my parents and their contemporaries, who grew up during the Great Depression, fought in the Second World War and (in Europe) suffered privation in its aftermath. 16 Another author might term my generation of ‘baby boomers’, ‘the luckiest generation’ or perhaps just ‘the most selfish generation’. We have not only been successful— and perhaps this is to our credit— in enjoying a time without major armed conflict or deep economic depression; we have also been effective in transferring wealth from both past and future generations to ourselves.
We reduced the debt we owed to our predecessors by rapid inflation. We promised ourselves generous state and occupational pensions, and then argued that the burden of providing them for subsequent generations could not be afforded. We sold assets that had been accumulated in the past, and would yield prospective benefits in the future, for our own current benefit, privatising state industries and monetising the goodwill in Goldman Sachs and Halifax Building Society. We let house prices and share prices rise to new highs in real terms, forcing our children to buy the nation’s assets from us at prices much higher than those we had ourselves paid. To add insult to injury, we seem to have been inadequately mindful of the national infrastructure: enjoying shopping malls, to be sure, but building few houses and allowing the transport system to decay.
The John Kay of the 1980s, transported twenty-five years forward in time, would not be able to afford to buy the house I still live in, would have incurred substantial debt in higher education, would have to make greater provision for his own retirement and would look ahead to a tax burden inevitably rising to meet the costs of an increasingly adverse demography. When Jeff Skilling toasted the capitalisation of energy contracts in champagne, he was celebrating the twin benefits of the prudence of his predecessors and his own imprudence in relation to his successors. And I could join him in that toast. Lucky indeed to have lived through the era of financialisation. (Kindle Locations 4541-4560)
Friday, October 14, 2016
G11 - Week 9 - Day 2
In-class work
Upcoming
- Ch. 5-6 assessment on Thursday, October 20th
- Make sure to be reading news sources and collecting real-life examples of market failures
From the blogosphere
- Reasons Not to Stress about College Admission
- How the other tenth lives - so important to know the progress that’s been made
Currently Reading
Other People's Money: The Real Business of Finance
The newer hedge funds were, in fact, little more than trading funds with high fees: typically 2 per cent of assets as annual management fee plus 20 per cent of profit. Some sought-after funds charged more. Taken as a whole, although some particular hedge funds have been very successful, the hedge fund industry has been very profitable for hedge fund managers, but not for their investors. (Kindle Locations 1875-1878)Many of these funds have a million dollar minimum to invest with them. With 100-200 clients, that totals 100-200 million dollars in assets. A two percent annual management fee translates into two to four million dollars a year before taking the 20 percent of profits, which might be anywhere between 5-20%, depending on the firm. A five percent return on 100 million dollars is five million dollars in profit, which the manager then takes 20 percent of, or an extra one million dollars. Between the two percent and 20 percent fees, that could mean a manager is making three million dollars on a normal year without much effort.
Wednesday, October 12, 2016
G11 - Week 9 - Day 1
In-class work
- Exercises 1-3, page 133
- Positive Externalities of Production as a Market Failure
- Positive Externalities of Consumption as a Market Failure
Upcoming
- Ch. 5-6 assessment on Thursday, October 20th
- Make sure to be reading news sources and collecting real-life examples of market failures
From the blogosphere
Currently Reading
Other People's Money: The Real Business of Finance
In most Western economies today, the assets and liabilities of banks exceed the assets and liabilities of the government and the aggregate annual income of everyone in the country. But these assets and liabilities are mainly obligations from and to other financial institutions. Lending to firms and individuals engaged in the production of goods and services— which most people would imagine was the principal business of a bank— amounts to less than 10 per cent of that total. In Britain, with a particularly active financial sector, that figure is less than 3 per cent. (Kindle Locations 181-185)
Thursday, October 6, 2016
G11 - Week 8 - Day 2
In-class work
- Chapter 5 exercise questions/closure - 10 minutes
- Introduction to Market Failure - Negative Externalities of Production
- Negative Externalities of Consumption as a Market Failure
- Exercises 1-3, page 133
Upcoming
- Ch. 5-6 assessment on Thursday, October 20th
- Make sure to be reading news sources and collecting real-life examples of market failures
From the blogosphere
Currently Reading
The above diagram shows what can potentially happen when large groups of migrants move into a host country. The diaspora (migrants living in the host country) can indefinitely grow in size when they are unable or unwilling to integrate into the host country's society. This can lead to a number of issues, namely a break down of mutual regard and perhaps emigration of the host citizens to other countries.
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