Answer Sheet 2018 Economics Final Project

Name______Block______

Answer Sheet 2018 Economics Final Project

Due: Friday, January 26th, 2018 (end of class, no late projects)

Directions: Answer all of the questions for the chapters below to complete the final project. Additional information you will need for the chapter questions is after the Chapter 10 questions. Any information other than class notes that is used from the internet should have the website URL listed in the answer.

Chapter 1: SCENARIO Part 1 Cost - Benefit Analysis

Option 1 - Total Teardown Total Project Cost: $70 Million

Option 2 - 3 Year Renovation Total Project Cost: $55 Million

Option 3 - Quick Fixer Total Project Cost: $30 Million

What is this the best option and why does your cost benefit analysis prove that against the other two plans your choice is the best? (show the cost-benefit analysis)

What will the reactions to your choice be from the groups affected by the renovations? (teachers, students, and community)

Chapter 1: SCENARIO Part 2 INCENTIVIZING

What would be your idea for incentivizing a group, and who would you incentivize? (teachers, students, or community)

Why did you decide to incentivize this group?

Chapter 3: Economies Inside an Economy

●Around the world today, the most common type of economy is a mixed economy, meaning it has portions of a traditional, command, and/or a market economy as well as the economic goals and questions that go along with that choice of system.

●The United States has a mixed economy and has portions of its economy that represent each style - traditional, command and market.

Give at least one example of how portions of the U.S. Economy represent each of the following economies and explain how. (traditional, command and market)

Rank in your opinion, the US's view on the 6 economic goals from 6 to 1 in terms of which you think they believe is the least important to the most important and why?

Chapter 5: Supply, Demand and Equilibrium

●Price floors and price ceilings create limitations on how high or low prices can go and negatively affect equilibrium, supply and demand, but are meant to create a specific effect in society to "improve" things for specific people.

●For this scenario, you will be required to choose 1 thing each that you believe could be affected by a price floor and a price ceiling to improve things for a portion, or all, of society.

●When choosing your 2 items please answer and specify the following information.

What items did you choose for your price floor and price ceiling?

Who were positively affected by the price controls (price floor & price ceiling)?

Who were negatively affected by the price controls (price floor & price ceiling)?

Be sure to graph each item (price floor, price ceiling) and show all of your work (supply, demand etc…).

Ms. Armani has a paper you need to complete the price controls on. You must turn it back into her.

Chapter 7: SCENARIO 1 Market Structures

●Throughout the U.S. there are thousands of companies in all different types of market structures. But, for this portion of the project, you are required to find the best possible example for each of the market structures right here in Loudoun County.

For each market structure, (perfect competition, monopolistic competition, oligopoly, and monopoly) find an example company in Loudoun County, and list the company’s area location (example Ashburn).

Company: Location:perfect competition

Company: Location:monopolistic competition

Company: Location:oligopoly

Company: Location:monopoly

Chapter 7: SCENARIO 2 Externalities

●Loudoun County has been affected by numerous externalities, both positive and negative. For this scenario, you are required to find and explain a positive and negative externality for this area.

●Remember your definitions - positive externality is something GOOD that was unintended from the original creation or building of a product and a negative externality is a BAD result that was unintended from the creation of building of a product.

Explain the positive externality in Loudoun County, and describe the intended purpose for the product or service. Then explain the unintended consequence, and why it is positive.

Explain the negative externality in Loudoun County, and describe the intended purpose for the product or service. Then explain the unintended consequence and why it is negative.

Chapter 8: Investments, Money and Banking

●We have numerous forms of currency in the world currently from cash to credit and debit cards.

●All of them have the characteristics of currency: acceptability, portability, durability, divisibility, scarcity, and uniformity.

●For this scenario, you will be creating, or finding, a replacement currency for the world, but it cannot be something we already use for currency, which includes cash, change, credit, and even bitcoins.

●Your currency can be anything that you can make fit the 6 characteristics, but it cannot be altered in any way. It must be something different and in its rare form.

What is your replacement currency?

How does your replacement currency fit each of the six characteristics of currency: acceptability, portability, durability, divisibility, scarcity, and uniformity?

Rank the six characteristics of currency. Which of the six characteristics of currency are the most to least important and why?

Chapter 10: Human Capital and the Labor Market

●Many of you have dreams of your perfect job when you get out of school finally, whether that be college or high school, but you may not know much about what is required to get to that position or how much competition there is in that specific labor market.

●For this scenario, you will be required to do some research about the labor market in Virginia and your intended industry or occupation.

●You will need to visit to start your research, then follow the directions below.

○Visit the website and go to "Occupation Profile" on the left-hand side.

○Click Occupation Profile, then clickJobs,

○Click on Occupational Listing

○Search for your job and pick the closest job title available. After doing that answer the following questions...

What is job you picked?

What is the average salary for this job?

What human capital (education level, or training) do you need for this position?

(may need to look this information up on alternative websites)

Additional Information for Final Project

Chapter 1: SCENARIO Part 1 Cost - Benefit Analysis

●Your school is nearly 50 years old and on the docket for major renovations.

●As engineers and construction managers come through to make their assessments of your school they came up with a total of 3 possible scenarios.

●As Principal, you are required to produce a detailed report of which decision you believe benefits thestudents, teachers, and the community the most and why.

●Your recommendations will be used in the final construction decision of the Superintendent.

Option 1 - Total Teardown Total Project Cost: $70 Million

Project Details:

●Your school would be completely renovated from top to bottom with the latest and greatest designs, layouts, larger hallways, classrooms, the newest technologies and wonderful athletic and theatrical amenities.

●This design gives you the works without having to purchase new land.

○However, to do this, your faculty and staff would be forced to work an altered schedule at a new location for the next 2 years.

○Students would be bussed to the other end of the county (an average of a 35-minute drive) to find a school to accommodate the student body.

○Your athletic games and theatrical performances would all be at this alternate school and would be required to be planned around the other events of your host school.

○Any revenues would be required to be split with your host school.

○Every one of your teachers would only be given a cart instead of their own classroom (obviously due to space).

○Finally, your support staff (secretaries, janitors, counsellors and such) would all be placed at other schools for this two year period.

Option 2 - 3 Year Renovation Total Project Cost: $55 Million

Project Details:

●Your school would be under mild construction for the entire 3-year period with numerous distractions and movements of classrooms, teachers and other staff as construction moves from one side of the building to the other.

●Your school would gain a complete renovation, but would only be retrofitted with the best that could fit into the original building layout.

●For instance, while the gym would be renovated, it would not become any bigger; just better.

●The same is true for all other classrooms and performance areas and fields. Additional classrooms would be added and upgrades would be made, but you still have a 50-year old building.

○Your staff, students, and faculty all stay at their original location, just burdened daily.

Option 3 - Quick Fixer Total Project Cost: $30 Million

Project Details:

●Your school day would not be interrupted with this plan as all work would be done by a night work idea.

●Work would start at 5pm each night and run until 5am.

●However, your fixes would only be to the most essential areas of the building, which means only the things that you decide fit under the $30M price tag.

●You know that you need more classrooms, a new roof, and to renovate the athletic support facilities.

●It leaves you $8M to choose any 2 of the 3 projects left your list, but you cannot do all three.

●The options are2 new turf fields, a new auditorium or a complete technology(network & computers) upgrade across your school.

●Obviously, you have various groups in your ear fighting for each choice.

●Again, your building and lay-out stay the same, as do classrooms, in fact many will not even be painted unless it is chipping or the floor tiles are broken Your building is again, still 50 years old.

Chapter 1: SCENARIO Part 2 INCENTIVIZING

●After making your decision, obviously, there will be a group or groups that will be incredibly unhappy, but we know that people respond to incentives in predictable ways.