Blog M11 and M12 Blog5

Microeconomics
1. Microeconomics is the study of decisions that businesses and individuals make regarding allocation of resources and prices of goods and services.
Facebook Lingo- Microeconomics is wen ppl make decisions bout resources & the stuff we buy.


Role of Money
1.Unlike play money real money can actually be spent in exchange for a good or service. Play money has no actual value to it. Play money has no store of value.
2.I do not have a most prized possession. But, if I did- in example my most prized possession is my car; I would be willing to accept a coin collection or something that I could use a store of value to allow it to be my most prized possession in the long run.


Circular Flow Model- M11
1.A circular flow tells us that input from each sector and to each sector on production and thus goods and services are created.
2. The role of household is to pay taxes and labor to the government and give labor and payments to the businesses.
3. The role of business is to give income, goods and services to the household and to pay taxes, goods and services to the government.
4. The role of government is to give service and income to the household and to give service and payments to the businesses.
5. The households supply labor and other factors of production that are sold on resource markets.


Law of Demand and Law of Supply- M12
1.A. The demand for chicken would increase because people would use chicken as a substitute for beef that has an issue with mad cow disease, which would cause the supply curve to shift to the right for chicken and to the left for beef.
B. The supply of orange juice would decrease if Florida is hit with severe weather because Florida is one of the main suppliers for orange juice, and the supply curve would shift to the left because of the shortage of oranges there would be.
C. If 30% of coffee bean crops are destroyed the supply of coffee would decrease because as much coffee would not be able to be produced with the lack of crops, which means the supply curve would shift to the left.
D. The supply of cereal would increase and the price would also increase. Therefore the demand for cereal would decrease and the supply curve would shift to the right.

2.A.The price of doughnuts would decrease if they were to cause high cholesterol in adults because the demand for them would decrease. this makes the equilibrium quantity also decrease because they would not be consumed as much as before.
B.If widespread unemployment continued, the market for doughnuts would decrease because they would have to decrease the price of doughnuts because of the effect unemployment has on the income of the consumers. This will cause the equilibrium quantity decrease.
C. If Krispy Kreme introduces a low calorie doughnut the price would increase because the demand for the doughnuts would increase. This would cause the equilibrium quantity to increase because they would be willing to produce more if they are able to charge more for them.
D.Factors that can change the quantity supplied are price- if the price of an item is cheap then the item would not be produced as much as it would if the price was higher. Demand- the more the consumers demand a product the more the suppliers would produce.


Reflection1. Really didn't get how to explain how real money differs from play money instead of the fact that it isn't real and can not be actually spent or exchanged.
2.How do I explain the changes to equilibrium quantity and price in a scenario.

BLOG3-How different economic systems answer the three basic economic questions

     1. Every society must answer the three questions: What to produce? How to produce it? Whom to produce ot for?

2. An economic system is the system of production, distribution and consumption of goods and services of an economy. The four type of economic systems are: Command Economy- controlled by the government. ex. Cuba , North Korea, and China all have command economies.
Market Economy- owned and controlled by the people. ex.UK and Germany have market economies. Traditional Economy-economic decisions are determined by habit and tradition. ex. if your family is a doctor you will be too. Mixed Economy-a mix of private and government controll.
ex.U.S and Cuba have been referred to as a mixed economy.

3.The four economic systems answer the three basic economic questions based on their values and the type of economic system it is. A traditional economy is based on tradition and customs determined by members of society. A command economy's government officials answer the three basic questions. In a market economy individuals (buyers/sellers) answer the three basic questions. A Mixed economy has a combination of economic systems.

4. The United States reflect a combination of economic systems because it uses the mixed economy economic system. A mixed economy uses charactristics from all forms of government.

5. The Inuit uses a traditional economic system. in a traditional economic system the people's actions are based on tradition and customs. The fact that the people teach their children that they must always do their best at every task and praises them when they complete the task successfully can be seen as a custom. It is something that they instill in all their people so the act will continue even when the kids are adults.

6.The economic systems compare because they all regulate goods and services and contrast because they each have their own way of producing the goods and services.

7. I did not fully understand the invisible hand and the Adam Smith's theory enough to answer this question.

Production Possibilities Curve;Rational Decision Making;and Specialization

1.If i owned a business a production possibility curve would tell me what quantity of a non-essential good or a service an economy can afford to produce without jeopardizing the required production of an essential good or service. If there is an increase in technology or increase in the workforce or services the production possibilities curve would shift outward.

2.In order to decide whether or not i am making a rational economic decision i would use opportunity cost. Which means making the best choice between two options.

3.Companies choose to specialize because they are able to produce more of the finished product with workers each having specific skills to complete that are combined to make the finished product rather than one worker making an entire product by theirself which would take more time. Companies trade in order to invest in products they are not able to specialize in or produce than another product.

PPC shows the possible prodution rates of a product and the maximum capacity of 2 goods that can be produced using current resources.

 Entrprenuership: owner of a self business that produces its own products

Reflection: I fully understand this standard. I like this standard best because i can use things from the standard to relate to real life situations more than other standards.

1. In what type of situations can i use rational decision making?
2. Do all businesses use the production possibilities curve?

limited resources and unlimited wants and needs

Scarcity influences the choices I make about spending money by urging me to spend money on the things  need more than the things I want. I once had to make a trade off between getting my nails done and buying what I wanted to eat. Since I decided to get my nails done my opportunity cost was having to buy something cheaper to eat other than what I really wanted.

Business owners influence the factors of production because they have to use each of them in order to start or run a busines. The four factors of production are provided to the businesses by the households. The risk business owners might take with the four factors of production is not properly using a factor to their advantage for example not choosing a location where the business can prosper in it's environment, not hiring workers that posses skills worthy of doing the job, not getting all the goods and supplies needed to do the job, and losing money by risking to start a business.
I see myself more as an entreprenuer who makes decisions about the use of labor because I am usually a good leader and I know how to put plans into actions. I am a good instuctor and will make good use of the products.

Capital goods are a part of labor they are used to have better production.

Reflection: I understand this standard for the most part. The visuals help me understand the breakdown of how everything works.

1. 
   
   What steps does it take to have production in a society?
2. 
   
   Do all societies use the same production process?