Monday, February 21, 2011
Mikeroeconomics: Education Returns
Mikeroeconomics: Education Returns: "This graph represents how I think students learn. The blue line shows that as teachers push kids to learn the students achieve a tempo..."
Mikeroeconomics: Shrinking Products
Mikeroeconomics: Shrinking Products: "This video from Consumer Reports states the products are shrinking in a deft attempt to fool the consumer. Products require huge production..."
Thursday, February 17, 2011
Mikeroeconomics: Marginal Product
Mikeroeconomics: Marginal Product: "Marginal Productbrought to you by Livescribe Today's lecture."
About the Author: Mike Fladlien is an AP Economics teacher from Muscatine High School in Muscatine, IA. He is an EconEdLink.org author, and also publishes the Mikeroeconomics and iMacroeconomics VB blogs.
Summary:
About the Author: Mike Fladlien is an AP Economics teacher from Muscatine High School in Muscatine, IA. He is an EconEdLink.org author, and also publishes the Mikeroeconomics and iMacroeconomics VB blogs.
Mikeroeconomics: Taxes and Burden of Tax
Mikeroeconomics: Taxes and Burden of Tax: "Who Pays the Taxbrought to you by Livescribe"
Wednesday, February 16, 2011
Mikeroeconomics: Sienfeld Economics
Mikeroeconomics: Sienfeld Economics: "Here's a site that uses clips from the popular sitcom Sienfeld to make points about barriers to entry and monopoly power. The barrier to en..."
About the Author: Mike Fladlien is an AP Economics teacher from Muscatine High School in Muscatine, IA. He is an EconEdLink.org author, and also publishes the Mikeroeconomics and iMacroeconomics VB blogs.
Summary:
About the Author: Mike Fladlien is an AP Economics teacher from Muscatine High School in Muscatine, IA. He is an EconEdLink.org author, and also publishes the Mikeroeconomics and iMacroeconomics VB blogs.
Monday, February 14, 2011
Mikeroeconomics: Marginal Rate of Substitution in Education
Mikeroeconomics: Marginal Rate of Substitution in Education: "Will computers replace teachers in the classroom? I think that as computers develop computers will be substituted for teachers to the..."
Saturday, February 12, 2011
Mikeroeconomics: Cobb-Douglas Production Function
Mikeroeconomics: Cobb-Douglas Production Function: "The original paper on the Cobb-Douglas Production Function is found here. A hearty thanks to Tim Schilling at MV=PQ for this paper. This p..."
About the Author: Mike Fladlien is an AP Economics teacher from Muscatine High School in Muscatine, IA. He is an EconEdLink.org author, and also publishes the Mikeroeconomics and iMacroeconomics VB blogs.
Summary:
About the Author: Mike Fladlien is an AP Economics teacher from Muscatine High School in Muscatine, IA. He is an EconEdLink.org author, and also publishes the Mikeroeconomics and iMacroeconomics VB blogs.
Friday, February 11, 2011
Elasticity Coefficient and Total Revenue Test
About the Author: Mike Fladien is a high school Economics and Law teacher in Muscatine, Iowa. He has been called the EconHacker because he has a talent for explaining Economics concepts in a simple language that anyone can understand.
Thursday, February 10, 2011
Ceilings and Floors
About the Author: Mike Fladien is a high school Economics and Law teacher in Muscatine, Iowa. He has been called the EconHacker because he has a talent for explaining Economics concepts in a simple language that anyone can understand.
The Theory of Interstellar Trade
The stand up economist, has a post to Paul Krugman's humorous article on the Theory of Interstellar Trade. The Cartoon Introduction of Economics, by Grady Klein and Yoram Bauman is superb. It covers microeconomics. Because of this book, I learned easier ways to teach hard concepts such as marginal decision making. My favorite part of the book was auctions.
About the Author: Mike Fladien is a high school Economics and Law teacher in Muscatine, Iowa. He has been called the EconHacker because he has a talent for explaining Economics concepts in a simple language that anyone can understand.
Wednesday, February 9, 2011
Supply Curve and Supply Shifts
About the Author: Mike Fladien is a high school Economics and Law teacher in Muscatine, Iowa. He has been called the EconHacker because he has a talent for explaining Economics concepts in a simple language that anyone can understand.
Income and Substitution Effect
About the Author: Mike Fladien is a high school Economics and Law teacher in Muscatine, Iowa. He has been called the EconHacker because he has a talent for explaining Economics concepts in a simple language that anyone can understand.
Today's Lecture
About the Author: Mike Fladien is a high school Economics and Law teacher in Muscatine, Iowa. He has been called the EconHacker because he has a talent for explaining Economics concepts in a simple language that anyone can understand.
Monday, February 7, 2011
Supply Curve and Supply Shifts
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About the Author: Mike Fladien is a high school Economics and Law teacher in Muscatine, Iowa. He has been called the EconHacker because he has a talent for explaining Economics concepts in a simple language that anyone can understand.
About the Author: Mike Fladien is a high school Economics and Law teacher in Muscatine, Iowa. He has been called the EconHacker because he has a talent for explaining Economics concepts in a simple language that anyone can understand.
Sunday, February 6, 2011
Economic Thought
The Midwest was recently blanketed with a foot or more of snow. As people demanded snow removal, the price homeowners were willing to pay increased. In response to the price increase, any kid with a snow shovel entered the market as a snow remover. As the number of shovelers increased and the snow gradually disappeared, many exited the market after taking short-run profits. This is perfect competition.
About the Author: Mike Fladien is a high school Economics and Law teacher in Muscatine, Iowa. He has been called the EconHacker because he has a talent for explaining Economics concepts in a simple language that anyone can understand.
About the Author: Mike Fladien is a high school Economics and Law teacher in Muscatine, Iowa. He has been called the EconHacker because he has a talent for explaining Economics concepts in a simple language that anyone can understand.
Why P=MC is Efficient
Students often have trouble understanding the efficiency condition, P=MC. Maybe students would understand the concept if they used consumer's surplus to measure utility. If you need a review of consumer's surplus, click here. Assume, the P>MC. The size of consumer's surplus will be smaller than when P=MC. If you assume that economic actors seek to maximize utility, then the actions of consumers and producers will result in a condition that maximizes utility. In order for utility to be maxed, P must equal MC, an efficient outcome.
In monopolized markets P>MC so utility is not maximized. That means that resources that are used in the monopolized market could have alternate uses in a perfectly competitive market that would lead to a greater consumer's surplus and greater utility. That's why monopolies are inefficient from society's viewpoint.
About the Author: Mike Fladien is a high school Economics and Law teacher in Muscatine, Iowa. He has been called the EconHacker because he has a talent for explaining Economics concepts in a simple language that anyone can understand.
About the Author: Mike Fladien is a high school Economics and Law teacher in Muscatine, Iowa. He has been called the EconHacker because he has a talent for explaining Economics concepts in a simple language that anyone can understand.
Saturday, February 5, 2011
Economics Lesson Plan - Supply and Demand
This lesson plan demonstrates the concept of supply, using a YouTube video, a mnemonic and a textbook reading.
1. View the following YouTube video by EconGirl.
http://www.youtube.com/watch?v=JiGhGzCL7Js
2. Discuss the difference between a change in supply and a change in quantity supplied.
3. Use a mnemonic to help students remember when the supply curve shifts. I use
ROTTEN.
Resources
Other goods that are complements of substitutes in production
Taxes and subsidies
Technology
Expectations
Number of sellers
4. Assign reading in textbook.
5. Give appropriate grade-level assignments.
http://www.youtube.com/watch?v=JiGhGzCL7Js
2. Discuss the difference between a change in supply and a change in quantity supplied.
3. Use a mnemonic to help students remember when the supply curve shifts. I use
ROTTEN.
Resources
Other goods that are complements of substitutes in production
Taxes and subsidies
Technology
Expectations
Number of sellers
4. Assign reading in textbook.
5. Give appropriate grade-level assignments.
How to Show Marginal Cost
A link to a quick lesson on how to show marginal cost is here.
About the Author: Mike Fladien is a high school Economics and Law teacher in Muscatine, Iowa. He has been called the EconHacker because he has a talent for explaining Economics concepts in a simple language that anyone can understand.
Friday, February 4, 2011
Economics Lesson Plan - Supply
This lesson plan demonstrates the concept of supply, using a YouTube video, a mnemonic and a textbook reading.
1. View the following YouTube video by EconGirl.
http://www.youtube.com/watch?v=JiGhGzCL7Js
2. Discuss the difference between a change in supply and a change in quantity supplied.
3. Use a mnemonic to help students remember when the supply curve shifts. I use
ROTTEN.
Resources
Other goods that are complements of substitutes in production
Taxes and subsidies
Technology
Expectations
Number of sellers
4. Assign reading in textbook.
5. Give appropriate grade-level assignments.
http://www.youtube.com/watch?v=JiGhGzCL7Js
2. Discuss the difference between a change in supply and a change in quantity supplied.
3. Use a mnemonic to help students remember when the supply curve shifts. I use
ROTTEN.
Resources
Other goods that are complements of substitutes in production
Taxes and subsidies
Technology
Expectations
Number of sellers
4. Assign reading in textbook.
5. Give appropriate grade-level assignments.
Which Market Structure?
Suppose a firm faces a demand curve shaped by the following formula: Q = AP^-1. This curve would be unit elastic and so the total revenue at every point would be the same. This is a downward sloping curve that is convex to the origin. Since the firm can't compete on price, the firm is essentially a price taker. What market structure does this firm operate in?
My answer is that this firm must be an exception to our economic theory. So it's an anomaly. Since the firm will probably use non-price competition, I suggest that the firm is monocomp.
About the Author: Mike Fladien is a high school Economics and Law teacher in Muscatine, Iowa. He has been called the EconHacker because he has a talent for explaining Economics concepts in a simple language that anyone can understand.
Thursday, February 3, 2011
Should Parking Be Free in Muscatine?
(Note: this is a popular lesson plan that I posted in 2008; you can find it here).
Students find that lunch is cheaper if they buy the “meal” instead of the entrée. So students add a half pint of milk and a side to their tray. When most are finished eating, there’s still food left on their trays. So by the end of the lunch time, you’ll see students drawing in ketchup, throwing fries, pushing a straw through an uneaten hamburger, and pouring chocolate milk out on the table. The food is excellent. Why do students waste it? Because the food is free and it is over consumed. In other words, after the food satisfies the student’s hunger, the food finds alternate uses to bring satisfaction such as being used in a food fight or modern art.
Whenever something is given away free, there’s a tendency for it to be over consumed.
What would happen if parking becomes free in the downtown area? It’ll be over consumed. The free parking will provide alternate uses and exert a cost on others.
If parking becomes free in the downtown, you’ll find that patrons will park longer than before. You will find that you can’t find a place to park downtown. You’ll find the downtown more congested. You’ll find that there will be unintended consequences exerted on people who are neither a buyer nor seller parking in downtown. Let me elaborate.
Say you want to go to the grocery store to buy a week’s worth of food. How do you find a parking place? I’ve noticed that most people try to park as close to the entrance as possible. This has many advantages. You can get into and out of the store quicker. You have to carry you groceries less distance which might be beneficial if you buy ice cream in August. I have also noticed that parking near the entrance of the store is harder to find and the traffic is heavier around the front door. What I observe is people first looking for a parking place near the door then they circle around the parking lot to looking for the next closest place to park. Sometimes, parking is the hardest part of shopping. Some people will give up and come back later. Parking around the front entrance of the store is free. Yet these coveted places are the first ones taken.
Why would free parking in the downtown be any different?
Dr. David Hakes, professor of economics at the University of Northern Iowa, “Waiting for a parking place increases as the price of parking goes down. The true cost of parking isn’t measured in the price. It’s the driving around looking for one and the walking to the place of business.”
Griffin Hahn, a future student at the University of Florida says, “The parking is free at the university. A license to park is really a license to hunt for a place to park. That’s why most students ride bikes to class or take the bus.”
I think free parking will, pardon the pun, “drive” people away from the downtown because they will not be able to find a place to park and the parking spots they find will be too far away. In the Undercover Economist, Tim Harford explains that most city dwellers would not walk 1,500 feet to save about 50 cents on an item.
Instead of free parking, I propose a parking plan that makes parking very expensive during the peak business hours and relatively cheap or free when businesses are closed. My plan would call for parking meters to be installed that accept a card that automatically debits the amount of the parking fee to the penny for the time used. Thus, if Maggie wants to rent a tux at K and D Clothiers Maggie can park in front of the store, swipe her card in the meter, run into K & D. If the transaction takes 5 minutes, Maggie gets charged ten cents. Under the current method, Maggie would put 25 cents into the meter and linger in the store until the meter expires.
The city council should put peak pricing into effect in the downtown. Peak pricing will provide parking places to those who value them the most at the time they need them without imposing huge transaction costs. And when I come home from work, I won’t park in ACE Hardware parking lot and take a space away from a paying customer.
Students find that lunch is cheaper if they buy the “meal” instead of the entrée. So students add a half pint of milk and a side to their tray. When most are finished eating, there’s still food left on their trays. So by the end of the lunch time, you’ll see students drawing in ketchup, throwing fries, pushing a straw through an uneaten hamburger, and pouring chocolate milk out on the table. The food is excellent. Why do students waste it? Because the food is free and it is over consumed. In other words, after the food satisfies the student’s hunger, the food finds alternate uses to bring satisfaction such as being used in a food fight or modern art.
Whenever something is given away free, there’s a tendency for it to be over consumed.
What would happen if parking becomes free in the downtown area? It’ll be over consumed. The free parking will provide alternate uses and exert a cost on others.
If parking becomes free in the downtown, you’ll find that patrons will park longer than before. You will find that you can’t find a place to park downtown. You’ll find the downtown more congested. You’ll find that there will be unintended consequences exerted on people who are neither a buyer nor seller parking in downtown. Let me elaborate.
Say you want to go to the grocery store to buy a week’s worth of food. How do you find a parking place? I’ve noticed that most people try to park as close to the entrance as possible. This has many advantages. You can get into and out of the store quicker. You have to carry you groceries less distance which might be beneficial if you buy ice cream in August. I have also noticed that parking near the entrance of the store is harder to find and the traffic is heavier around the front door. What I observe is people first looking for a parking place near the door then they circle around the parking lot to looking for the next closest place to park. Sometimes, parking is the hardest part of shopping. Some people will give up and come back later. Parking around the front entrance of the store is free. Yet these coveted places are the first ones taken.
Why would free parking in the downtown be any different?
Dr. David Hakes, professor of economics at the University of Northern Iowa, “Waiting for a parking place increases as the price of parking goes down. The true cost of parking isn’t measured in the price. It’s the driving around looking for one and the walking to the place of business.”
Griffin Hahn, a future student at the University of Florida says, “The parking is free at the university. A license to park is really a license to hunt for a place to park. That’s why most students ride bikes to class or take the bus.”
I think free parking will, pardon the pun, “drive” people away from the downtown because they will not be able to find a place to park and the parking spots they find will be too far away. In the Undercover Economist, Tim Harford explains that most city dwellers would not walk 1,500 feet to save about 50 cents on an item.
Instead of free parking, I propose a parking plan that makes parking very expensive during the peak business hours and relatively cheap or free when businesses are closed. My plan would call for parking meters to be installed that accept a card that automatically debits the amount of the parking fee to the penny for the time used. Thus, if Maggie wants to rent a tux at K and D Clothiers Maggie can park in front of the store, swipe her card in the meter, run into K & D. If the transaction takes 5 minutes, Maggie gets charged ten cents. Under the current method, Maggie would put 25 cents into the meter and linger in the store until the meter expires.
The city council should put peak pricing into effect in the downtown. Peak pricing will provide parking places to those who value them the most at the time they need them without imposing huge transaction costs. And when I come home from work, I won’t park in ACE Hardware parking lot and take a space away from a paying customer.
Tuesday, February 1, 2011
Consumer Equilibrium
About the Author: Mike Fladien is a high school Economics and Law teacher in Muscatine, Iowa. He has been called the EconHacker because he has a talent for explaining Economics concepts in a simple language that anyone can understand.
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