Friday, January 21, 2011

Post 25: Where is America on the Gini Index?

After finding out that America is placed at number 40 on the Gini Index, it's very shocking. Americans believe that our country is perfect and should not be that high. Especially when comparing us to nations in Europe that we like to believe we are equal to, why is it that they are so low on the Gini Index but we are so high? America seriously needs to get our act together in order to improve this economic downer.

Post 24: Future Unemployed Heather Shinn

Fresh out of college the new herd manager for a large Minnesota dairy farm was just laid off and is currently structurally unemployed. The farm owners decided their was not enough money in the dairy industry anymore and opted to sell the farm eliminating a job for Heather. During the summer show season Heather traveled to various fairs fitting the cattle. Now, in mid-December, she is seasonally unemployed because their are no shows in the winter. A few months later, Select Sires offers her a job as an AI technician. This job requires traveling to many farms and working long hours of the day. After a couple months as an AI tech, Heather left her jobs in search of a better one, making her frictionally unemployed. Finally, Heather found her ideal job as the heifer specialist Arethusa Farms in Connecticut. Arethusa is one of the best and most known dairy farms in the country. Unfortunately, after just three years as an employee of Arethusa, they let go of some of their workers due to the economy and Heather loses her job to a more experienced Arethusa alumni. Heather is now cyclically unemployed.

Thursday, January 20, 2011

Post 18: Twitter Man

The three websites I would most like to use on the mid term are...

1) because it does not focus on one topic but covers almost everything we learned throughout the class. Not only does it hit many key aspects we talked about but it does it in an organized manner.

2) because it has a quick search. That makes it easier to find vocabulary with we learned a lot of throughout the class.

Again this is a very organized study tool. I like how everything is in alphabetical order because it's extremely easy to follow.

Wednesday, January 19, 2011

Post 12: GDP

To Whom It May Concern (GDP),
Does GDP take into consideration the effort we put into it, such as volunteer work? NO! GDP does not take into consideration the black market or any unregistered money. We do not get paid to do volunteer work, we do it because it makes us and other people happy. I believe that GDP is a false indicator and suggest you use a different measurement such as GNP or GPI.


Post 23: Wanted Poster

I couldn't figure out how else to upload this so I had to use the print screen button and get the entire page, sorry!

Post 22: 15 Facts Learned from Quizzes

Quiz One:
1. Anyone who is not classified as either unemployed or employed is not in the labor force.
2. When 95% of of the labor force is employed it's known as full employment.
3. Unemployed workers have jobs beneath their skill level.
4. Di scourged workers want to find jobs but have stopped looking.
5. Unemployment rate is the most closely watched and highly publicized labor force statistic.

Quiz Two:
1. Higher interest rates lead to less consumer spending.
2. A price index is used to measure the price level.
3. The price index is also used to calculate the inflation rate.
4. A supply shock in an event that increases the cost of production for all or many firms.
5. Hyperinflation is the worst form of inflation.

Quiz Three:
1. The poverty threshold is the lowest income level that a family needs to maintain a basic standard of living.
2. The poverty rate is the percentage of individuals or families living in poverty.
3. Rapid changes in technology have led to a drop in demand for lower-skilled workers.
4. Raising minimum wage is just one suggesting for improving income equality.
5. The income gap between the richest and poorest Americans was wider in the 1990's than any time since World War II.

Post 21: Vocabulary

Page 235 Q1 Vocab:
1. National Income Accounting: tracking process providing information about a nation's economic activities
2. Gross Domestic Product: total dollar value of all final goods and services produced within a country during one calender year
3. Output-Expenditure Model: C + I + G + (X-M) = GDP
4. Personal Consumption Expenditure: consumer purchases
5. Gross Investment: total value of all capital goods produced in a given nation during one year as well as changes in the dollar value of business inventories
6. Nominal GDP: GDP expressed in the current prices of the period being measured
7. Real GDP: GDP adjusted for price changes
8: Price Index: set of statistics that allows economists to compare prices over time
9. Underground Economy: illegal activities and unreported legal activities
10. Gross National Product: NIPA used to measure U.S. economy by the Commerce Department until 1991

Page 240 Q1 Vocab:
1. Business Cycle:fluctuations in a markets system's economic activity
2. Expansion: period of economic growth
3. Peak:high point at which the economy is at it's strongest and most prosperous
4. Contraction:recession
5. Recession:decline in the real GDP for two or more consecutive quarter (six months of more)
6. Depression: prolonged and severe recessions
7. Trough:final stage of the business cycle, occurs when demand, production, and employment reach their lowest levels
8. Leading Indicators:anticipate the direction in which the economy is headed
9. Coincident Indicators:changes as the economy moves from one phase of the business cycle to another and tell the economists that an upturn or downturn in the economy has arrived
10. Lagging Indicators: change months after an upturn or downturn in the economy

Page 246 Q1 Vocab:
1. Real GDP per Capita: increase in the real dollar value of all final goods and services that are produced per person for a specific period of time
2. Labor Productivity: measure of how much each worker produces in a given period of time
3. Productivity Growth:increase in the output of each worker per hour of work
4. Capital-to-Labor Ratio:amount of capital stock available per worker
5. Capital Deepening: increase in the amount of capital goods available per worker

Tuesday, January 11, 2011

Post 20:Quiz Corrections

Reviewing Facts: Matching
1) my answer: L (GNP), correct answer: H (National Income Accounting) because the GDP is not a tracking process, it's a total.
2) my answer: B (real GDP), correct answer: A (nominal GDP) because real GDP is adjusted for price changes and not expressed in current prices.
4) my answer: A (nominal GDP), correct answer: L (Gross National Product) because nominal GDP is the current GDP
7) my answer: F (lagging indicators), correct answer: G (coincident indicators) because lagging indicators happen after, coincident indicators tell economists that an upturn or downtown has occurred
8) my answer: G (Coincident indicators), correct answer: F (lagging indicators) because of the keyword duration, meaning current status and how long it will stay like that

Identifying Ideas: Fill in the blanks
2) my answer: business cycle, correct answer: product market personal consumption, gross investment, government purchases and net exports are not the business cycle

Understanding Ideas: Multiple Choice
3) my answer: C, correct answer: D because calculate index numbers for other years is only one step in this three step process.
4) my answer: D, correct answer: A because gathering the data is a slow and time-consuming process
8) my answer: B, correct answer: A because stock prices in a leading indicator, not lagging

Matching Part Two:
1) my answer: K (Gross Domestic Product), correct answer: D ( National Income Accounting) because GDP is not a tracking process
2) my answer: T (real GDP per capita), correct answer: B (nominal GDP) because it has to do with the current prices being measured
12) my answer: E (personal consumption expenditures), correct answer: C ( capital-to-labor ratio) because it's the amount of goods available per worker

Post 19: GDP Visual

Monday, January 10, 2011

Post 17: Business Cycle Graphs

My trophy for best graph goes to the first graph! It was the easiest to follow but still colorful and catchy enough to graph your attention and get the message across.

<---this picture is my favorite hockey player Sidney Crosby hoisting the 2009 Stanley Cup! :)

This first graph is very descriptive and easy to follow. It combines accuracy with creativity.

This graph is not very descriptive and kind of vague but easy to follow.

This graph is very descriptive and easy to follow however it does not have the names for the phases of the four cycles.

Thursday, January 6, 2011

Post 16: Visual Study Aid

Post 14: My Humps vs. Business Cycle Rap

I enjoyed both YouTube videos. But I think that because I know the song My Humps by Black Eyed Peas I was not able to take the song very seriously. I kept singing along but to the words of My Humps which is a silly song. Both were very informative videos but from an educational standpoint I think the Business Cycle Rap made the information more clear.

Post 15: Leading/Lagging/Coincident Indicators

Leading indicators signal future events. For example, the yellowish-amber traffic light tells you that a red light is coming. A second leading indicators would be building permits which signal you have permission to go ahead and build something. And lastly, bankruptcies.

Lagging indicators follow an event. For example, again with the traffic light, the yellowish-amber light follows the green light. Another example, the most popular example, is unemployment because if the unemployment rate is rising it means that the economy is failing. Interest rates are also another good example because the rates change after severe market changes.

Coindicent indicators occur at approximately the same time as an event. Continuing with the traffic light example, a green light is associated with the pedestrian walk signal. For personal income, a high personal income means a successful economy. Non farm payrolls is another example of coindicent indicators.

Wednesday, January 5, 2011

Post 13: 10 Things Learned From Quizzes

1) Gross Domestic Product (GDP) is the most widely used NIPA.
2)Durable goods, non durable goods, and services are included in personal consumption.
3) Illegal activities and unreported legal activities are part of the underground economy.
4) House work and repairs you can do yourself are examples of non market activities.
5) Taxes included in the final price of goods and services are indirect taxes.
6)The U.S. department of Justice collects economic indicators.
7)There are six stages or phases in the business cycle.
8)Businesses are fluctuations in a market systems structure.
9) The U.S. has to import that natural resource oil .
10)America's productivity growth since the 1960's has slowed.

Tuesday, January 4, 2011

Post 11: How is a GDP Calculated?

GDP=total output produced within the boundaries of the US

GDP Formula...
C + I + G + NX=M

C =consumer spending
I = investments
G = government purchases
NX= net exports
M= GDP and national income

Rules include....
1) Product must be made in your country
2) Product must be within country's border
3) Product must be final good or service

Monday, January 3, 2011

Post 10: Reaction to the Reading

I believe macroeconomics will be all about the prediction of interest rates as well as the behavior of prices. Trying to figure out why prices act the way they do seems like a very interesting topic. By studying macroeconomics I hope to learn how macroeconomists predict interest rates as well as how they study the behavior and why prices change the way they do.

Post 9: 100 Word Essay

What is technology? Could it be defined as texting, email, and Skype? Or is it an addiction? Facebook took the world by storm and quickly became the “it’ site that everyone was using. All Facebookers have a common goal, to keep in touch with society.
It’s arguable that technology is making America lazier but with inventions such as the Wii, Americans of all ages are able to be active and get in shape. With American obesity becoming such a huge issue, technology such as the Wii Fit is shaping America to becoming a healthier nation.