Jose Vazquez. Eric Chiang. A Picture is Worth a Thousand Words (at least): The Effective Use of...

Jose Vazquez.Eric Chiang.

A Picture is Worth a Thousand Words (at least): The Effective Use of Visuals in the Economics Classroom

Which word comes to mind to explain the concept of “Supply” to students?

The Supply Curve

• The supply curve is an upward-sloping curve illustrating firms’ willingness-to-sell a particular good or service. Why is the supply curve upward-sloping?– As the price of a unit increases, firms are more

willing to supply a greater quantity to the market.– The Law of Supply states that as prices increase,

quantity supplied increases, and vice-versa.– It also represents the cost of providing an

additional unit to the market, or Marginal Cost.– As the prices rises, suppliers are more willing to

incur greater costs to provide the good or service.– The idea that costs rise as the quantity supplied

increases is the result of Decreasing Returns to Scale.

Q u a n t i t y S u p p l i e d

Price

Law of Supply

$800/oz

$1,200/oz

$1,600/ozLaw of Supply

Corn Subsidies Excess Supply

Law of Supply

S

D

S'

An Increase in Technological Innovation

Q

P

Google: http://terpconnect.umd.edu/~pwang/PopIT/innovation.jpg

Problems With PowerPoint• Instructors tend to write every

single word of their presentation in their PowerPoint slides. This makes it difficult for the students to pay attention and also to concentrate on the message. Of course, this helps the instructor because it makes it easier to memorized the lecture while at the same time allow him or her not to face the students (which may cause panic). Nevertheless, this tend to cause the students to get…..

Problems With PowerPointbored out of their mind.

Minutes

Beats

per

Min

ute

15 30 45

85

81

77Dead

GDP per capita, 2005

Growth rate, 1960-2005

China $6,572 5.8%Singapore 29,921 5.4%Japan 30,821 3.8%Spain 26,125 3.2%India 3,486 2.7%Israel 25,670 2.7%United States 41,854 2.2%Canada 32,886 2.1%Colombia 7,769 1.8%New Zealand 22,511 1.4%Philippines 4,920 1.4%Argentina 14,421 1.0%Saudi Arabia 14,729 0.8%Rwanda 1,333 0.3%Haiti 1,836 –1.2%

Incomes and

Growth Around

the WorldFACT 1:There are vast differences in living standards around the world.

China

Singapore

Japan

Spain

India

Israel

United States

Canada

Colombia

New Zealand

Philippines

Argentina

Saudi Arabia

Rwanda

0 20000 40000 60000

GDP/person, 2005

China

Singapore

Japan

Spain

India

Israel

United States

Canada

Colombia

New Zealand

Philippines

Argentina

Saudi Arabia

Rwanda

5.8%

5.4%

3.8%

3.2%

2.7%

2.7%

2.2%

2.1%

1.8%

1.4%

1.4%

1.0%

0.8%

0.3% GDP growth rate, 1960- 2005

China

Singapore

Japan

India

United States

Canada

Philippines

Argentina

Saudi Arabia

Rwanda

5.8%

5.4%

3.8%

2.7%

2.2%

2.1%

1.4%

1.0%

0.8%

0.3%GDP growth rate, 1960- 2005

2) The Brain Likes the Forest

A B C D

E F G H

I J K L

Amplify by Simplifying

3) Picture Superiority

Adding a picture increases recollection by up 65 percent!

--John Medina

WorkingMemory

Visual message(pictures

)

Verbal messag

e(Words)

Focus

Devotion

Shifting Demand and Supply Curves• Suppose that an increase in the

demand for a particular good arises. What happens to equilibrium?– Demand increases shifting the demand

curve up, out, and to the right.– At the original equilibrium price, excess

demand exists in the market.– Buyers will drive up the price to outbid

other buyers for this shortage.– As the price rises, quantity supplied rises.– The price and quantity will continue to

rise until equilibrium is reached.– In a free market, the equilibrium price

will adjust rather quickly.

Shifting Demand and Supply Curves• Suppose that an increase in the

demand for a particular good arises. What happens to equilibrium?– Demand increases shifting the demand

curve up, out, and to the right.– At the original equilibrium price, excess

demand exists in the market.– Buyers will drive up the price to outbid

other buyers for this shortage.– As the price rises, quantity supplied rises.– The price and quantity will continue to

rise until equilibrium is reached.– In a free market, the equilibrium price

will adjust rather quickly.

Increase in

Demand

Increase in Demand

The Main Economic Problem

• Since all resources are scarce…• And since they could be

distributed in different ways– Give everyone the same– Leave it to Chance– Based on Need

• We need economics to find the BEST way to distribute the limited resoruces

Resources are scarce

Give everyone the same

Leave it to chance

Based on Need

Shifting Demand and Supply Curves

Image is too small

Shifting Demand and Supply Curves

Image placed at weird location

Hesitant

Distorted

You can’t see the text

Really tacky

Design Basics

Contrast is interesting

CONFLICT

CONTRAST IS INTERESTING

Contrast…

is interesting

Principles of PowerPointUsing PowerPoint for Good and

Not for EvilJose J. Vazquez, PhDAssociate Director

Teaching and Learning Center

Principles of PowerPoint

Using PowerPoint for Good and Not for Evil

Jose J. Vazquez, PhDAssociate Director

Teaching and Learning Center

Principles of

Jose J. Vazquez, PhDAssociate Director

Teaching and Learning Center

PowerPointUsing PowerPoint for Good and Not for Evil

• Courier New• Organized and Structured

• Comic Sans MS• Playful

• Times New Roman• Lazy, apathetic and unimaginative since you always use

the default.

Serif font

Sans-serif font

Based on Need

Based on Need

Incentives Matter!

Incentives Matter!

Incentives Matter!

Contrast is interesting

Drawing

Drawing Activity

Fierce Competition