Basic Macro

My latest gadget/software is Camtasia by Techsmith corporation. I have started creating simple powerpoint on the basic Microeconomic subjects, such as supply and demand, Equilibrium etc.
I have learned that I do not like my own voice and that I have an accent.
I started with microeconomics because it is easy to break down into simple components.
What are the Basics in Macro? GDP, Aggregate Prices, .....
Next how can I keep it simple and yet fun?

My Micro MultiMedia Page Do I have an Accent or just imagining it?

It is Tarriff Plus Subsidies in the Land of Rising Sun

In previous post I wondered how do the japanese subsidize their farmers?
According to the WTO:Read the Article
The average Japanese tariff rate on agricultural imports is 20.1%, and the effective tariff rate on rice imports is the equivalent of 406%

Japanese farmers' output equals 1.1% of the gross domestic product (GDP) of roughly 500 trillion yen a year but the amount of farm subsidies paid by the Japanese government is equivalent to an even larger 1.4% of GDP.

I have lived in the Japanese countryside and I understand the inefficiencies of this system. But I am forgiving of this inefficiency. Look at my August 21 posting!

Why is the U.S. falling behind?

This article from bloomberg states 'U.S. spends more on primary and secondary education than most developed countries, yet has larger classes, lower test scores and higher dropout ratesU.S. spends more on primary and secondary education than most developed countries, yet has larger classes, lower test scores and higher dropout rates".
What could be the cause?
Is it a statistical distortion? where schools with small budget are lumped in with affluent school districts leading to these numbers!?
Or
Is this confirming the results of the coleman report? http://webapp.icpsr.umich.edu/cocoon/ICPSR-STUDY/06389.xml
Or
Something else?

Article

Freakonomics is Yabai in Japanese

I was looking for a book and I saw a book called Yabai in Japanese. Yabai means strange or weird.
I recognized the orange within an apple image. It is the freakonomics book.
Apparently my wife read this book and that is why she is reading stiglitz microeconomics textbook. She is fascinated by economics as presented by Levitz and disappointed by microeconomics as presented in standard microeconomics textbook. She asked for an easy to read Microeconomics textbook. I gave her a few, but I think she will be disappointed.
I wonder could we make Micro more interesting? There are the experiments of supply and demand but something more...

Price Floor and Quality

I was walking with my wife and talking about price floors. She is reading Stiglitz book in Japanese. She asked me the following question: "What is wrong with price floor if it brings quality to the good?"
It took me awhile to figure out what she was talking about. It was with the help of the electronic dictionary that I understood she is talking about price floors.
She followed that with : "Is quantity everything?"
I tried to remind her that in Japan watermelon costs around 8000 yen (about $90).
She paused and said the following: "At first I liked cheap watermelon but now...."
I waited.
She continued: " I wonder Is cheap cheap everything? What about taste?"
This made me think too.
There were three questions on my mind:
1) What is wrong with a price floor which is set up to encourage high quality goods. (This is different from U.S. farm subsidies which encourages quantity)
2) Are we happier with more? I dont know if the fruit were truly better in Japan or not but it was a treat to have a piece of fruit. Scarcity made it tastier.
3) Why is my wife (a non-economist) reading Stiglitz economic textbook?
4) How do the Japanese subsidize their farms? Is it a quota or a price floor?

Freakonomics (this is freaky)

I found this article on freakonomics like a car crash. I found it disgusting but could not stop reading.
Here is another site I could not stop reading:
http://blog.organomics.org/

Every Micro teacher should read and use

Every Microeconomics teacher should read this book by Steve Keen. Even if an instructor does not accept his arguments it is an interesting way to get the students to think about Economics. Usually students just memorize the formulas but I love the look in the students' eyes when I tell them about this book.
The better prepared students love to read this book and argue with me after class. I take on the neoclassical approach and I see these students (so far two) ace my standard microeconomics exam.
They love to argue and prove the teacher wrong and in the process learn about Micro.

Debunk Econ Site

Go with the Flow

I had a conversation with my colleague at Rio she asked how do I like Krugman's new textbook so far?
I complained about Chapter 14 where he switches between Nominal and Real quantity of money so many times that it can becomes confusing.
However overall I recommended the book to her. She asked what do I like best about this book?
I said without thinking; "The Flow!"
This book does an excellent job explaining macroeconomics using the Circular-Flow model.

Podcasting

I have not written for awhile due to my new fascination with Audio. I know my students dont like to read so they all claim to be auditory learners.
I decided to believe them and I started playing with various audio softwares and sites out there. I found a site called podomatic which makes the whole thing easy. I put up couple of "testting this is mike" postings.
Also I got myself on i-tunes so students can download me on their i-pods.
I am curious as to how many students will stop attending my lectures.

Video Projects for Economics

This is a great idea. I wonder if I can get the students to do a project like this?

Why Study Econ Websitee

A Great Site

This is a great site!

CPI A smart students question

If the CPI overstate inflation, how do we know we are not overcorrecting for this and end up understating inflation?
What is the number telling us about the real world when we remove the volatile part of inflation? Does that mean nobody uses energy during that time!?

How economist see Valentine day

This is an excellent audio file to illustrate how economist think. Marginal cost of a valentine card vs. the Marginal Benefit of giving the card.
Happy valentine day!

An Excellent Site by NYTimes

This is a link that I found on Math and Econ using the New York Time.

What do they Know

The NCEE has released the findings of a new poll, conducted by Harris Interactive (The Harris Poll® People), that examines adults’ and students’ current understanding of basic economic concepts.