Teaching Economics Using Media & Active Learning October 19, 2013 CHARITY-JOY ACCHIARDO & G. DIRK...
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Transcript of Teaching Economics Using Media & Active Learning October 19, 2013 CHARITY-JOY ACCHIARDO & G. DIRK...
Teaching Economics Using Media & Active Learning
October 19, 2013
CHARITY-JOY ACCHIARDO & G. DIRK MATEER
Music and Economics
Ben Stein,The Face of Economics?
Ferris Bueller’s Day Off
T-mobile commercial
3
Part 1THE ECONOMIC WAY OF THINKING
Scarcity
How do we decide what to do/buy?
How do you travel?
THINK-PAIR-SHAREHow would you solve the previous
example if you do not know the value of the person’s time?
Try to work this out yourself. (1 min)
When I give the signal, form a small group
(2-3 people) and share your answers. Write up your solution.
The Road Not Taken – Robert Frost
Two roads diverged in a yellow wood, And sorry I could not travel bothAnd be one traveler, long I stoodAnd looked down one as far as I couldTo where it bent in the undergrowth.
More practice!
What is your opportunity cost of attending the 1D concert?
A.$0 (applaud) B. $65 (bark) C. $135 (cough) D. $200 (whistle)
$200
$135
Incentives
Incentives
Good intentions do not guarantee desirable outcomes!
Unintended consequences
Marginal ThinkingMB > MC
Making Decisions on the Margin
The Diamond-Water Paradox
Don’t confuse total value with marginal value!
Law of Diminishing
Marginal Utility
Why do pop singers typically make more
than top nurses?
>
Efficiency
Part 2EXCHANGE AND TRADE
Voluntary Exchange
The Trading Game
Trade Involves Opportunity Costs
Comparative Advantage & Trade
Should LeBron James clean his own house?
Comparative Advantage & Trade
Where did your shirt come from?
Poll
Discussion
Where do cottont-shirts come from?
Private Property Rights
What Makes eBay Work?
The Fishing Game
Fishing Game
(1) There are four contestants. Choose your champion!
(2) The game is divided into two rounds:(a) The first 30 seconds:
- gold jingle bells are worth $0.01.
- purple jingle bells are worth $0.05.
- blue jingle bells are worth $0.10.
- silver jingle bells are worth $0.25. (b) The second 30 seconds:
-gold jingle bells are worth $0.02.
-purple jingle bells are worth $0.10.
- blue jingle bells are worth $0.20.
- silver jingle bells are worth $0.50.
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Part 3SUPPLY AND DEMAND
WHAT’S YOUR PRICE?
What is the most you would pay to see a concert
(favorite artist, best seats, etc…)?
The Law of Supply
What amount of money would be necessary to
get you to perform karaoke for us right now?
Equilibrium Experiment
Buy low, Sell high
You have 15 minutes
Carefully record all transactions
You may not use violence to force a trade
Do not trade fractional units
Grab a slip and start trading!
Questions? Just ask!
The Market is Open
Time Left:
www.online-stopwatch.com
DECODING THE MYSTERY
Hard to Find (shortage)
In Equilibrium Easy to Get (surplus)
The Hudsucker Proxy
Price Ceilings: A Thought Experiment
THINK-PAIR-SHARE 1. Will there be more or less for sale?
2. Will this cause a shortage or a surplus?
3. Will the size of a typical roll increase or decrease?
4. Will the quality rise or fall?
5. Is there a way to rename the good to avoid the law?
6. Could you tie the purchase of the TP to another (more expensive) good?
7. Will there be an increase in self sufficiency?
8. How will politicians handle attempts to circumvent the new law?
9. Will the opportunity cost of finding TP rise or fall?
10. Would you buy illegally produced TP?
11. Will the new law cause more or less discrimination in society?
12. Who are the winners and losers?
Part 4THE ROLE OF PROFITS & LOSSES
SEINFELD – CAFÉ FAILURE
IT’S ALWAYS SUNNY IN PHILADELPHIA – Kitten
MIttons
Entrepreneurship & Wealth Creation
Entrepreneurship & Wealth Creation
What do tennis balls have to do with
economics?
Entry INTO Markets: Harbucks
I LOVE LUCY – The Diner
The Dynamic Nature of Change
Allowing products to fail (or be
replaced through innovation) allows for creative
destruction to take place.
Ben & Jerry’s Ice Cream Graveyard
Part 5PRICE DISCRIMINATION
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54
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How Do Airlines Make Higher Profits?
What should a firm do if it
can only charge one price?
I need five volunteers!
What happens if the firm is able to price discriminate?
When firms price discriminate, they earn more profit and also serve more customers!
$
Perfect Price Discrimination
Season Ticket Holders Get Better Deals
Differentiating Your Customers
Next Restaurant
Pricier hotels - Mac or PC?
Price Discrimination Quiz
Are the following situations examples of price discrimination?
Yes: Cheer No: Boo
Price Discrimination Quiz
Bart and Lisa go to a club. Bart has to pay a cover charge for entry, but Lisa gets in for free due to a “Ladies’Night” special.
YES! This is price discrimination.
The product is the same, and the price difference has nothing to do with cost differences.
Price Discrimination Quiz
At Little Nero’s Pizza, the menu lists the following prices: Cheese pizza = $ 8 Supreme pizza = $11
NO! This is not price discrimination.
The price difference exists in part due to cost of production differences.
Price Discrimination Quiz
Lisa buys an economy class airline ticket for $400
and Bart buys a first-class ticket for $800.
NO! This is not price discrimination.
Bart may get extra drinks and food which are additional costs to the airline. Bart also gets a comfy seat and more
legroom.
Price Discrimination Quiz
Lisa and Bart both buy an economy class ticket on the same flight. Lisa pays $83 less than
Bart because she booked 2 weeks earlier.
YES! This is price discrimination.
The product is the same, and the price difference has nothing to do with cost differences.
Jaime gets her oil changed at Cars N’ Stuff for $30 and Katie gets her oil changed at Automotives Incorporated for
$25.
Price Discrimination Quiz
NO! This is not price discrimination.
Two firms are offering different products. There may be quality
and cost differences.
Joe and Sheila each buy a ticket to the ballet and sit together. Joe paid $5 less than Sheila because of a student discount.
Price Discrimination Quiz
YES! This is price discrimination.
The product is the same, and the price difference has nothing to do with cost differences.
Flagstaff, gas price = $3.29
Tucson, gas price = $3.42
Price Discrimination Quiz
NO! This is not price discrimination.
Costs may be higher to get gas to Tucson.
Mark and JoAnn each buy one box of cereal at the local grocery store. JoAnn gets a $1.00 discount by using a coupon.
Price Discrimination Quiz
YES! This is price discrimination.
The product is the same, and the price difference has nothing to do with cost differences.
Part 6REALLY COOL RESOURCES
M E M E S
Let’s go to the site!
Pinterest Economics
Kim Holder
www.economicsoftheoffice.com
www.criticalcommons.org
(more clips)
Joe Calhoun (a variety of very useful clips)
Adrian Fohr (film and tv clips)
Brian O'Roark (music animations)
dirkmateer
Why do people trade?