Transcript Unit 7 Economic Challenges: Unemployment, Inflation, and Poverty

Unit 5 Economic
Challenges:
Unemployment,
Poverty, and global
Impact
Do Now
•Describe the
impacts/consequences
of Globalization (USE
YOUR NOTES!!)
• http://www.wxyz.com/news/state/michigan-movescloser-to-drug-testing-some-welfare-recipients
• Should Unemployment benefits be
expanded or cut?
Unit 5 Part I
• Learning Targets
• I can describe the unemployment
rate
• I can identify the factors used to
create the unemployment rate
Questions…
• 1. Why should we care about
unemployment in our
country?
• 2. What is the current
unemployed percentage in
Michigan?
What is the Unemployment
Rate?
• Unemployment Rate = percentage of the
labor force that does not have a job
• The labor force are people above age 16,
and below 65 and are
• 1. Looking for work actively
• 2. Have a job
Continued…
• No job + looking for work +
part of labor force = can
counted as unemployed
• That is it!! Who does that leave
out?!
Who does that leave out?
• 1. Discouraged Workers: people who have
wanted a job but have stopped looking
• Stiff competition for one job
• Frustration, depression
• 2. Underemployed: workers who have jobs
below their skill level or work part-time but
desire full time work
Do Now
• Describe the unemployment rate
• What are factors that are left out of
the official government calculation?
Learning Target
•I can describe the 4
different types of
unemployment
4 Types of Unemployment
• 1. Frictional Unemployment: temporary job loss when
worker moves from one job to another
• Healthy part of the economy: finding better jobs, actor,
musician
• Graduating college
• How is Mr. Said an example?
4 Types of Unemployment
• 2. Structural Unemployment: Changes in
technology, needed skills, and changes in consumer
tastes can leave people jobless
• Ex: CD players, fads that are now dead
• How can better technology hurt job growth?
4 Types of Unemployment
• 3. Seasonal Unemployment: joblessness that
happens because of changes in weather or time of
the year
• Retail stores
• Agriculture
4 Types of Unemployment
• 4. Cyclical Unemployment: joblessness due to
recessions and economic downturn. The worst kind
of the 4.
What kind of unemployment?
What type of unemployment?
What type of unemployment?
What type of unemployment?
Your choice…
• 1. In table groups, complete the back of your
worksheet “Types of Unemployment”
• 2. Create a political cartoon using colored pencils,
markers, on separate sheet of paper that describes
one of the “4” types of unemployment
Unit 7 Part II
• Explain how economists evaluate price changes over
time
• Describe what causes inflation
• Explain how inflation affects the economy
• Is 1 million dollars worth in
2014 or in the 1960? Why?
• https://www.youtube.com/watch?v=jTmXHvGZiS
Y
• https://www.youtube.com/watch?v=cKKHSAE1gIs
What is inflation
• Inflation: an increase in the average price of all products in an
economy
• Happens when overall quantity demanded exceeds quantity
supplied for a long period of time
• People compete for scare resources (Price goes up!)
• A new home in Brooklyn, NY cost $2,500 (1853)
• A routine doctor’s visit cost $2 (Florida, 1852)
• A dozen pairs of Levi Strauss blue jeans cost $13.50
•
•
•
•
•
(1874)
One pair of shoes cost $0.98 (1875)
One suit cost $10.00 (1875)
One Oldsmobile cost $650 (1904)
Total annual cost of Cornell University, including living
expenses was $1,400 (1927)
One movie ticket cost $1 (Chicago, 1978)
Consequences of Inflation
• Consequences of Inflation: Write these down!!
•
•
•
•
Encouraged Speculation
Distorted distribution of income
Distorted spending patterns
The value of wages goes up*****
Hyperinflation: When inflation goes insanely high!
Can you imagine trying to spend millions of dollars
just trying to buy food? Welcome to Zimbabwe…
https://www.youtube.com/watch?v=mM3_z2RB3YU
Making Money in the Stock Market
What is a stock?
• Stock = % ownership in a company.
• If you buy stock, you technically own part of the company you
bought stock in
• Stocks are traded daily in the stock market (New York Stock
Exchange) (high speed trading video)
•
http://www.popmodal.com/video/1277/Trading-Places-Final-Exchange-Scene-amp-Explanation
•
https://www.youtube.com/watch?v=nppON29OZ_4
How do I make money off stocks?
• Stocks go up and down in value every day
• BUY LOW, SELL HIGH
• Sell the stock at a high price, and you make the difference in cash
• Ex: Buy stock when it’s at $50, sell it at $100, you
make $50 times the amount of shares you bought
(100, 200 shares, etc)
What causes the price changes?
• Company makes money or looks like it’s doing well = increase in
stock price
• Company loses money or looks like it’s not doing well = decrease
in stock price
• **Ex: New person takes over as CEO for company (stock
price usually increases)**
•
http://www.ibtimes.com/joe-kennedy-pandora-ceo-resigns-stock-price-soars-20-after-announcement-photo-1116622
Optional Slide (Investing Info)
• http://money.cnn.com/magazines/moneymag/mon
ey101/
• If you want to know more about money, investing,
saving, and smart ways to use your money
• Check out stock market posters in the back of the
room