Monday, November 28, 2005

Ten Rules of Economic Thinking

I was preparing myself for an interview and started thinking about what are some economic rules (objectives) that the students should leave the class with. I thought of "there is no free lunch", "people try to maximize their utility and minimize their costs", and my ADHD took over.
My eyes went to a book on my bookshelf called "Sex Drugs & Economics" by Diane Coyle.
She has listed the following:
  1. Everything has a cost
  2. Things always change
  3. There are no time bombs
  4. People do what they want
  5. Prices make the best incentives
  6. Supply and Demand works
  7. There is no easy profit
  8. Always look up the evidence
  9. Where common sense and economics conflict, common sense is wrong
  10. Economics is about happiness

Saturday, November 26, 2005

Does Education Corrupts?


I was reading on how Socrates taught his students. It seems that he started with figuring out his students’ beliefs. Next using the tools of dialogue and logic he would slowly pull them away from those beliefs. My classical training is not strong but wasn’t Socrates convicted of corrupting the youth? Is this what education supposed to do (corrupt or challenge our beliefs)?

Friday, November 25, 2005

Coincidence


Recently I applied for a position at a local community college. I have been invited to be interviewed. After the interview, I am to give a ten minute teaching demonstration. The topic of the teaching demonstration is Marginal Utility!

Wednesday, November 23, 2005

Cheat Sheet


Here is a link to a cheat sheet for how to find a human on various corporate sites. This site was created to deal with the frustration that customers feel.
This made me think how much of cheat sheets in any class is out of frustration and how much is out of not studying?

Monday, November 21, 2005

Diminishing Marginal Utility?


I had noticed that my dog tends to let his dogfood sit in the bowl for a long time. At first I thought he did not like his dog food. I bought another brand of dog food and noticed that he still lets the food sit there.
I though maybe I am giving him too much food. I started giving him half a cup of dog food in the mornings instead of his usual one cup of dog food. After a few days I noticed that he is eating everything in his bowl.
Next I noticed he is willing to roll over and do various tricks for his plain dog food. This would not have happened when he was getting one cup in the mornings.
He is getting one and one half a cup now, more than before, and he loves it more!
Is this Diminishing Marginal Utility of dog food or something else?
Is Diminishing Marginal Utility biological?

Sunday, November 20, 2005

Choices

I saw this story on NPR. It reminded me of my dog. At home when there is only on ball and I throw him the tennis ball he brings it back. If there is more than one ball he does not bring the ball back. He seems to get confused as to which ball he is to bring back.
I have noticed that the link is not working so I am copying and pasting the story below:
November 19, 2005 · Medicare recipients can now sign up to get prescription drug insurance through Medicare. It's the biggest change since the government program started 40 years ago. Even government officials admit signing up for the program will take some effort.
At a flu vaccine clinic in Washington, D.C., Jean Meisel is like many other Medicare recipients. She's thinking about what to do about the new prescription program. She'd like to sign up before it begins Jan. 1. But she doesn't know what plan to pick. She's not computer savvy.
But she agrees to give it a try, so we log on together, and go to www.medicare.gov. She's particularly interested in finding a plan from the American Association of Retired Persons (AARP). After a brief delay, more than three dozen plans appear on the screen, AARP among them.
But the type is too small for Meisel to read easily. Together, we finally find AARP, and we can see that she could join an AARP plan, if she's willing to purchase her drugs at a large chain pharmacy instead of the neighborhood pharmacy, where she's been going for years and knows the pharmacist.
Across the room, 80-year-old Thelma Robinson and her 61-year-old son Charles Hall have just gotten their flu shots. Hall gets his mother her prescription drugs. She takes about six or seven pills a day. Hall, who pays for his mother's medication, spends about $100 a month on them.
Hall is computer savvy, but dealing with Social Security via computer has scared him off. His mother got a form in the mail from the government to apply for financial assistance. He mailed it back this week and they're waiting to hear before they sign up.
In Florida, 65-year-old Ed Rubiera wrote a letter to the Orlando Sentinel saying as someone in Mensa, and with an MBA, he figured he could work things out himself. But he had a hard time on the Internet site. He says it doesn't go deep enough. He had to go to individual company Web sites and make phone calls. He's not happy about the 64 choices he has. He says it's too complex. He is, though, happy about one thing. He figures he'll save about $700 nex year. So he's already signed up.
Some people have had very good experiences. Patricia Longenecker of Elizabethtown, Pa. attended a seminar put on by a consortium of state, federal and private groups. A state official worked the computer for her, and Longenecker feels like she understands her options. Longenecker's mother is only on a few drugs now. The cost of premiums for the new program and meeting the deductible would be more than what she's paying now. Nevertheless, Longenecker says, she's looking toward the future when her mother may need more drugs, and she's planning to sign her mother up for one of the plans.
The government doesn't have any sign-up figures yet. Benefits and charges for those who sign-up before the end of the year begin Jan. 1.

Friday, November 18, 2005

The Hurricane of Excuses

The students come up with all sort of excuses for not doing their homework. Is this good practice for the real world? I am thinking of playing this story for them to show them how to make excuses.

Tuesday, November 15, 2005

An Interesting Question

The following is my reply to a questionair for a position. It is not my usuall first draft posting. The question was:
5. Describe how you would use real life experiences in order to help students learn the abstract concepts in economics.
I agree that using real life experiences is a valuable learning tool, and I have developed methodology to help the students make these connections between real life experiences and abstract concepts.

One of the most effective methods of teaching economics is the use of classroom exercises that insert students directly into the economic environments being studied. For example, in Microeconomics using playing cards I divide the class into two groups. Students with red suits are buyers and students with black suits are sellers. I ask them to trade and I make a prediction as to the price. After a few rounds of trading they end up at the predicted price. They want to know how I was able to predict the price and they quickly discover the concepts of supply, demand and equilibrium. I like to think that I am providing my microeconomic students with a lab component where they can experiment with the concept being studied. Wherever I do not have an experiment I ask them to discuss and connect concepts to “reality”, before I give them any examples.

In Macroeconomic the experimental component is more difficult to produce and I mostly rely on developing the students’ observational skill. I assign students to find news articles, or a story that illustrates the given concept being studied. The process of searching for the news story makes them think, and I hope looking at the world as an economist will becomes a habit for them.

How did I do? We will find out soon enough.

Monday, November 14, 2005

What did the Fed chief Say?


This weekend I was listening to the Motely fool show on NPR. They play this game called "What Did The Fed chief Say?"
They play a section of Greenspan testimony and ask the contestants (playing for fool caps) to translate his testimony into plain English.
I am doing something similar with Newspaper articles, but I think this method of playing testimonies and asking for translation will be better. Radio is a little old fashioned for this generation. This generation respond better to Television. So if I use video it might be easier for them to make the connection between what they are studying and the real world.
As a CSPAN junky I can record and edit for in class conversation.

Thursday, November 10, 2005

Thinking of what is taught in a Macro class

What do most Macroeconomics classes cover?

Here is a list of items that I believe every macroeconomics course should cover:

  • National Income Accounting

GDP vs GNP

No Double Counting
Income = Expenditure
GDP is a flow concept not a stock concept (this one is my own pet peeve)

  • The Real vs. Nominal Concepts (price levels)

  • Redistribution effects of inflation

  • Using the Aggregate supply Aggregate model

To explain change in output
To explain change in prices
Shapes of the aggregate supply and the policy implications

  • Money

Functions of money
Forms of money

  • Policy
  • Monetary
    Fractional Reserve banking
    The Fed
  • Fiscal
    Deficit
    1. crowding out
    Debt
    1. internal debt
    2. external debt
    3. redistribution effects of govt. debt
  • International (this one is new to me but I cover the following)

Exchange rates
Exports vs. Imports

Wednesday, November 09, 2005

International trade good absolute comparitively sucks


This is an interesting discussion starter on the show Market place. According to this report Trade makes poor bettter off in absolute terms but creates a big gulf between rich and poor. However most people judge their standard of living in comparative terms.

Monday, November 07, 2005

The Federal Budget Calculator

The Brady Bunch and the AMT

A funny way to explain AMT. I have to sit down and think of other ways to bring popular culture into the Econ class.

Thursday, November 03, 2005

Productivity and Standard Living


Productivity is defined as how much output we can get from each unit of input or as the BLS puts it:

Productivity
A measure of economic efficiency that shows how effectively economic inputs
are converted into output. Productivity is measured by comparing the amount of
goods and services produced with the inputs that were used in
production.


A question that should be posed to the students is the following:
If Productivity is increasing thereby you get more per unit of input are you better off or worst off?

Wednesday, November 02, 2005

Outlining and Student Praise

This last few weeks, I have been busy writing cover letters, rewriting my resume, and working on supplemental questionnaire. I was applying for two full-time positions with health insurance. These last few weeks, I felt my lectures were unsatisfactory. I was not preparing as usual, so I was surprised that a student in macroeconomics came up and asked me if I would be teaching microeconomics next semester.
I said "yes" and made a joke "Are you sure you want to take me again?"
She replied "You are a good teacher. I like the way you explain things."
I said "Thank you"
She said "You do a great job outlining the reading and telling us what to look for( in the reading)"
I had never thought of what I do as outlining their reading but that is a good way to think about it.