FROM MICRO TO MACRO: CHANGING YOUR ECONOMIC PERSPECTIVE Imagine that this classroom is a country (C.-Lalland). Each of you represents one business- a collection of workers (and consumers, because workers go shopping when they aren’t working). A. REVIEW OF MICROECONOMICS CONCEPTS: you need your computer and one sheet of big paper. 1. The product that your business group produces: WRITE the product down on your paper. a. Group 1: Canadian bacon (also known as ham) b. Group 2: Military Tanks c. Group 3: Robots for factories d. Group 4: Haircuts e. Group 5: T-shirts f. Group 6: Gasoline 2. IDENTIFY the market structure for your business. 3. On your own document, DRAW a correctly labeled graph of market supply and demand for your product. 4. One person in your group: DRAW a large copy of your graph on your big paper. At the top of your big paper, WRITE the name of your product in large letters. Give this to your teacher. 5. If the raw materials that your business uses to make your product become more expensive, what would change: supply or demand? 6. Would it increase or decrease? 7. What would happen to the price of your product? 8. What would happen to the quantity of your product sold? 9. Identify a product that could substitute for your product. 10. If the price of that substitute for your product increased, what would change for your product: supply or demand? 11. Would it increase or decrease? 12. What would happen to the price of your product? 13. What would happen to the quantity of your product sold? 14. Identify a product that would be a complement for your product. 15. If the price of that complementary product increased, what would change for your product: supply or demand? 16. If the government of C-Lalland increased taxes on your product, what would change: supply or demand? 17. Would it increase or decrease? 18. What would happen to the price and the quantity of your product you would sell? 19. If the government of C-Lalland subsidized your product, what would change: supply or demand? 20. Increase or decrease? 21. What would happen to the price and quantity of your product you would sell? B. GROUP INTRODUCTION TO MACROECONOMICS CONCEPTS 1. Count up the total number of people in your classroom today and write that number down (include yourself and your own group members and your teacher). 2. If every STUDENT in your classroom spent $100 on all the products made by the different businesses in the classroom (each group is a business), how much money would be spent? (# of students in class x $100) = C 3. If your TEACHER spent $500 on all the products made by the different businesses in the classroom, how much money would be spent? (# of teachers x $500) = G 4. If every BUSINESS spent $100 on capital goods (like robots or computers), how much money would be spent? (# of businesses x $100) = I 5. If there are 20 students on the 300 hall in Helfland and each of them spent $100 on different products made in C-LalLand, how much money would be spent? (20 people from another country x $100) = X 6. If all the STUDENTS in your classroom spent $10 on different products made in Helfland, how much money would be spent? (# of students in class x $10) = M 7. 8. 9. 10. Add up the numbers you came up with in #2, 3, 4, 5; then subtract the number from #6. (C + G + I + X – M) = If each business in the classroom fired one worker, how many jobless people would be in the classroom? What percent of the classroom would be unemployed? If each business in the classroom charged $100 for their product in 2021 and then in 2022 they each charged $110, by what percent would prices have increased in C.Lalland from 2021 to 22? C. LOOK AT THE HEADLINES: WHICH STORIES ARE MICRO STORIES? WHICH ARE MACRO STORIES? https://www.cnbc.com/ MICROeconomics STORIES: Write the title of the HEADLINES BELOW. Write a three sentence summary of the article. MACROeconomics STORIES: Write the title of the HEADLINES BELOW. Write a three sentence summary of the article.
