Kyle Schmitt's First Semester Final Project
Standard 1: Understand the function of common financial instruments.
Over the semester I have learned about common financial instruments, such as investments in stocks and mutual funds, insurance and the use of credit cards. I was taught about stocks and mutual funds through the stock game that we participated in for six weeks on Market Watch. I learned about the many types of insurance and credit cards through the budget project that we did. Where I had to research insurance that would apply to when I would graduate from college and be on my own. I also had to research credit cards and which bank I was going to get a credit card from.
Standard 2: Understand the role of scarcity and economic trade–offs and how economic conditions impact people’s lives.
Over the semester production possibilities curve, scarcity and subsidies. In class I made multiple possibility curves to learn about them and how different scenarios affect the curve. Scarcity was one of the things that could affect a production possibilities as there would be no more product to sell. In class we watched a video over farm subsidies, the video interviewed people who were affected negatively by farm subsidies. It discussed how people could own farm land and not use it and then receive money for it. Below is the marginal cost and marginal benefit chart.
Standard 3: Understand the functions of economic institutions.
The function of money was one thing we learned about this semester. The chart below illustrates the how money is exchanged between producers and consumers. For a week we played the game monopoly to better understand how monopolies in real life gain all of their power. We also looked into some monopolies and the types of goods or services they provided. In this day in age though, the government has set regulations so that monopolies cannot exist, but some still do. Banks are another economic institution that affect the economy. They control a large portion of money, they also control the interest rates and loans. Which can affect the economy because people take out loans for cars, houses, college and other big expenses; and if the interest rates are too high then people will reconsider taking out loans.
Standard 4: Understand how governments throughout the world influence economic behavior.
Government assistance programs benefit individuals, but they also hurt people as well. Food stamps are a good example of this because people can still buy food and necessities for their children if they have any; but it hurts because it is funded by tax payers. The Federal Reserve is the national bank of the United States of America. It is the most powerful bank in the US and was created to create and ensure stability for the economy. It over looks all other banks in the US, like the Supreme Court of banks. The Federal Reserve influences the economy because it controls a large portion of money in the United States.
Monetary policies are government policies intended to promote employment and economic growth. Fiscal policies are taxes and other spending polices.
Standard 5: Understand how universal economic concepts present themselves in various types of economies throughout the world.
In class we created multiple supply and demand curves to better learn about the law of supply as well as the law of demand. The law of supply and demand is the correlation between the price of a good or service and the want or need of that good or service. The graphs helped us better understand the law of supply and demand as the desire of the product or service increased or decreased. GDP is Gross Domestic Product which is the value of all the finished goods and services produced within a country's borders in a specific time period. Inflation has affected the United States greatly, one way to combat inflation is for the government to increase interest rates.
Standard 6: Understand the local, state, regional, national, and international factors that create patterns of interdependence in the global economy.
Government subsidies can positively affect big businesses because it can promote trade on the open market. Such things as farm subsidies can help big businesses greatly because a big agribusiness can own farm land and not farm on it and make money from the government. Comparative advantage is when a certain country can produce a good or service at a lower opportunity cost than another country. While absolute advantage is when a country can produce a good or service more efficiently than another country. Free trade would be beneficial because the consumer could shop globally and find the lowest price. The disadvantage to that would be that many companies would outsource their jobs so they can produce the cheapest good and it would take jobs away from the United States.
Standard 7: Understand the impact of advancing technologies on the global economy.
During class we had to create a product, we created a golf ball with GPS tracking in it so you never lose your ball. This product could take of on the global market because golf is a global sport and people are always looking for new technology to advance their game. We also had to create a commercial for a newer product and we chose an oxygen bar. This is an advancing technology that the government could get behind because it is healthy and will promote a healthier life. Green technologies such as electric cars affect the global economy because when gas prices go up then it does not affect electric cars.