Good Morning! --Copy your learning target into your Civics Notebook: WWL: about Circular Flow, Money and Banking, the Federal Reserve, Consumer Rights, and other influences on the economy.

IW: review all areas, and take note of areas that I am especially weak in, so I can properly study and prepare prior to the test.--Copy your homework into your agenda book!

Exit Ticket

List five questions that you didn’t know the answer to.

JeopardyCircular

Flow Money &Banking

FederalReserve

ConsumerRights

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Final Jeopardy

EconomicInfluences

1--Point Answer

The government provides these specific public goods and services.

1--Point Question

What are the military, highways, and postal service?

2--Point Answer

The government provides these to both households and firms, while households and firms both provide this to the government.

2--Point Question

What are (1) public goods and services and (2) taxes?

3--Point Answer

This shows the basic economic relationships between households, firms, and government, within a market economy.

3--Point Question

What is the Circular Flow Model?

4--Point Answer

Explain transfer payments using real-world examples. (You need to first know what they are, then create a real-world example for each.)

4--Point Question

What are: (1) unemployment – someone loses his job; (2) welfare – someone who receives financial assistance due to hardship and need; and (3) social security – provided to someone who has reached the age of retirement.

5--Point Answer

Summarize the path taken by a dollar bill that starts off in a piggy bank, then travels to McDonalds, then travels into an individual’s checking account, and then finally ends-up helping to pay for a new public highway. (Tell me where

the dollar bill goes, and how/why he gets there.)

5--Point Question

What is households, product market, resource

market, taxes to government, public goods

and services to households/firms?

1--Point Answer

These are the methods through which the

government influences economic activity.

What are (1) taxes, (2) borrowing, and (3) spending?

1--Point Question

2--Point Answer

These are the methods through which the

government promotes and regulates competition within the marketplace.

2--Point Question

The government supports business start-ups, enforces antitrust legislation, and engages in global trade. (It uses government agencies, such as the FCC, EPA, and FTC.)

3--Point Answer

The government has decreased its spending, and therefore there is a

reduced demand for items. As a result of a ___________, the government has

now also reduced taxes.

3--Point Question

What is slow economy?

4--Point Answer

This explains why the government lowering taxes made it possible for the local eye doctor to open a second office.

4—Point Question

What is by lowering taxes, available funds for private and business spending were increased, therefore the doctor was able to get a loan from her bank, and open a second office?

5--Point Answer

When the nation’s debt exceeds its revenues, a new start-up businesses is unlikely to begin. (State the reasons why.)

5--Point Question

When the budget expenses exceed revenue, the government is forced to increase

borrowing. Increased borrowing reduces funds that are available to the public to

borrow; therefore it is unlikely that a new start-up would find the financing they need

to get going.

1--Point Answer

This is anything that is generally acceptable to sellers in exchange for goods and services.

1--Point Question

What is money?

2--Point Answer

These are the financial intermediaries that take deposits from households and

firms and make loans to other households and firms.

2--Point Question

What are banks?

3--Point Answer

These are the four types of financial intermediaries.

3--Point Question

What are the commercial banks, savings & loans associations, savings banks and credit unions, and money market mutual funds?

4--Point Answer

_________ describes the US currency system today, as it is backed only by the confidence and trust of the public, versus _________.

4--Point Question

(1) What is a fiduciary monetary system?

(2) What is gold or silver?

5--Point AnswerAnalyze using the functions of money: Joe and Bob were neighbors in Virginia. One day Joe called Bob to offer Bob his five-year-old snow-blower in exchange for Bob’s brand-new lawnmower. Joe didn’t expect much snow in Florida. Joe’s lawnmower recently died, so it needed to be replaced. Joe thinks it is a fair trade. Bob likes the idea of trading because he doesn’t like his new lawnmower, but wonders if the snow blower is only worth about half of the worth of the lawnmower. He thinks it’s really old, and can’t be worth that much.

5—Point Question(1) Medium of Exchange– the lawnmower and snow-blower are not portable, not widely accepted for payment, and not divisible. Here, the parties would be faced with the task of exchanging goods over a great distance. Because the goods are not divisible (unlike the dollar), if the lawnmower is worth twice the snow-blower, then there is no way to make change. (2) Store of Value– the snow-blower is old and isn’t going to keep its value. Although the lawnmower may have more value now, it will also begin to lose value. Because the two items vary in age, they will lose value at different rates, this makes it difficult to execute a barter fairly.

1--Point Answer

This is the primary goal of the Federal Reserve’s monetary

policy.

1--Point Question

What is price stability?

2—Point Answer

This is the reserve requirement.

2--Point Question

What is the money that banks must keep on hand?

3--Point Answer

These are the three primary roles of the twelve Federal Reserve Banks.

3--Point Question

What are to provide economic analysis, deliver financial services to banks, and supervise banks?

4--Point Answer

These are the main jobs of the Federal Reserve.

4—Point Question

What are to clear checks, transfer bank funds, act as the government’s bank, supervise banks, supply money to banks, control the money supply, protect bank customers, and make loans to banks?

5—Point Answer

Maria recently got her license to do nails. She hasn’t been able to find a job, so she wanted to open a new nail salon. She went to the bank, but was turned down for a loan. Assess what the Federal Reserve may have done to cause this scenario.

5—Point Question

The Federal has likely raised the discount rate so Maria’s bank has borrowed less money from the Fed, therefore they had less to lend, and thus Maria didn’t get her loan. Because less money has been put into the economy, the economy has slowed down, this explains why Maria is having a hard time finding a job.

1--Point Answer

This is the right that protects consumers from dangerous products.

$1—Point Question

What is the right to be safe?

2—Point Answer

This is the right that allows consumers to be compensated for misrepresentations, bad goods or unsatisfactory services.

2—Point Question

What is the right to redress?

3—Point Answer

_________ and ________ are two examples of the regulatory agencies that work to protect consumers.

3—Point Question

What are the FTC, CPSA, or FDA?

4—Point Answer

While having dinner at a fancy and expensive restaurant, you notice roaches in the kitchen. You are disgusted! You complain to the manager, and she says that your meal is free. Please point out if there is anything else you need to do, and why?

4—Point Question

What is: an obligation to complain because the roaches are a safety hazard?

5—Point AnswerPatrick signs-up to participate in a tournament-style soccer league for the winter. He signs a contract, but fails to read it. In the small print, In-Zone states that they reserve the right to make adjustments to classes as necessary. When Patrick gets there, he learns that there are not enough kids signed up to run a tournament-style league, so In-Zone has decided to hold a winder Academy instead. Utilizing what you know about consumer rights, evaluate Patrick’s arguments.

5—Point Question

What is: Patrick can argue that his right to information was violated

because In-Zone put the fact that they could change the class in small print on the contract. He can also argue that he isn’t receiving what he bargained for.

Final Jeopardy

What is the impact of technological innovations on:-capital-goods and services-cost of production

Final Jeopardy AnswerInnovations in technology contribute to the global flow of information, capital, goods and services because it is easier to offer these services across borders/oceans. As more people buy across borders/oceans, capital is spread across many countries. The use of technology lowers the cost of production because each individual item costs less to produce.