1. What could we conclude from
yesterday’s organ donor/sale question?
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1st Come, 1st Serve Auction Undecided
FW Summer Econ – Organ Allocation Issue

2. Go to computer lab today

3. What if….
In our system:
• Firms need households
• Households need firms
• They are interconnected
• 2 effects:
• Govt raised sales tax
to 25%?
• Govt decreased
environmental
regulation
• Unemployment rate
rose by 10%
• Dow Jones increases
by 20 %

4. On your slate
1. How much information will you miss if you
miss 1 day of a regular school day?
2. What if you miss 2 days?
3. What if you miss 8 days?

5. “the margin”
• Additional
• Ex: production, consumption, effort

6. Two volunteers
• Two Volunteers
• Marginal utility

7. Two volunteers
• Two Volunteers
• Law of diminishing
marginal returns
• Eventually marginal
benefits will decrease

9. Movie Clips
• How do we see Diminishing Marginal Returns
in each clip
• NY Coney Island hot dog eating contest
• Squidward

10. Eventually…

11. Application to students?

12. Application to business?

13. Application to government?

14. Application to partiers

15. On your Slate
Write a specific example of Diminishing
Marginal Returns from your life, using
economic vocabulary

16. Review Biz Organizations

22. Which of the 3 business orgs would you
use to start a…..

23. Which of the 3 business orgs would you
use to start a…..

24. Which of the 3 business orgs would you
use to start a…..

25. Which of the 3 business orgs would you
use to start a…..
Tile setting

26. Which of the 3 business orgs would
you use to start a…..

27. Which of the 3 business orgs would you
use to start a…..

28. Which of the 3 business orgs would you
use to start a…..

29. Quantitative Easing on back of quiz
Why would an economist say it
makes sense to pay $500 to fly
to Los Angeles, when a person
could drive for only $90?

30. On your slate
Think of a day when you got a lot done. What
were you doing? Why were you able to do it?

33. Experiment
• 1 group draws
• 1 group draws
• 1 group draws

34. Graph Experiment
How could I model this?
Increase productivity?

35. Productivity
• Quantity of output for each unit of input
• For example:
• Mechanic can do 4 oil changes per hour
• Each oil change requires $8 worth of filter & oil
• “At the margin” increases in
Productivity
Another example?
Hours studying? Working?

36. Draw and label 2 good PPF
label impossible, efficient and inefficient

38. Increases in productivity
• Causes ---------
• #1 technology
• Others:
• Human capital
• Cheaper inputs
• Health
• Globalization

39. Production Possibility Practice
What is the
opportunity
cost of
moving from
A to B?
A
B

40. Production Possibility Practice

41. Production Possibility Practice

42. Production Possibility Practice

43. Production Possibility Practice

44. Production Possibility Practice

45. Production Possibility Practice

47. On your
slates
3 reasons
negative

48. In your groups
• You are members of the
financial ministry of the
country of Travistan
• Create a budget for FY 2015
• Smog level 100 million
particles per square inch
Reducing pollution would
increase tourism and create
thousands of new jobs
Travistan

49. Stock price article
• Assignment with your partner, 1 sheet
1. What factors give stocks their value?
2. What problems are created by a stock’s change in
price?
3. How does this information change your view of
the stock market?
4. Pick one of your stocks, what has happened to its
price in the last year? Why might that be
misleading
5. Write an activity Mr. Klein could use with this
article and its core concept.