Eugene International High School I.B. Comparative Politics and Economics

2013-2014

I.B. Internal Assessment Portfolio

a.k.a. “Commentaries”

© 2012-2013

Donn Osterlund Kyle Yamada

I.B. Economics Internal Assessment Portfolio, a.k.a. “Current Events Papers”/“Commentaries”:

Frequently Asked Questions

1. What is the I.B. Economics Internal Assessment Portfolio? What are the required Economics “commentaries”? By the second week of March, 2014, you will write three (3) original, illustrated, two- to three-page “Current Events Papers” – I.B. calls them “commentaries” – that adhere strictly to guidelines prescribed by I.B. These four commentaries will be based upon current news articles that you find, analyze and evaluate (details below). Your Economics teacher will evaluate these papers according to I.B. grading guidelines; together, they will count for a large portion of your total term grade. In addition, for those students taking the I.B. Economics exam, the commentaries may be assembled in a portfolio, shipped off and evaluated by trained Economics examiners in other countries. For I.B. test-takers, your scores for these commentaries will count, collectively, for 20% of your total I.B. Economics score. 2. Who must complete this portfolio of economics commentaries? All students enrolled in Economics at I.H.S., whether or not they intend to take the I.B. Economics test. 3. Why should I care about these commentaries? Economics does not happen in a vacuum; real people’s lives are changed every day by individual and collective economic decisions. These commentaries are an important way for you to demonstrate to your Economics teacher, and to I.B., your ability to apply economic theory to a variety of real-world situations. In addition, these commentaries will give you practice in critical writing, and may provide you with an excellent writing sample for college applications, scholarships, etc. 4. What kinds of articles will I use to write these commentaries? You will select your own articles, or “extracts,” subject to these restrictions:

(a) Each article must have as its main focus a different section of the I.B. Syllabus. There are four total sections in the I.B. Economics syllabus: (1) Microeconomics; (2) Macroeconomics; (3) International Economics; and (4) Development Economics.

(b) Your three selected articles must be current. Each article must have been published within six months of the start of class. To make this easy for you, the oldest article you may use can be from 1 April 2013.

(c) Your three selected articles must come from a variety of sources and media. You may not use the same source twice. For example, if you use the New York Times for your first commentary, you may not use it again for your second or third commentaries. You must choose your articles from the news media or news media web sites. These may include local, national and international magazines, newspapers, and journals. Avoid The Economist as they usually perform the function that you are asked to do in a commentary. You may not use blogs unless they are associated with recognized news organizations.

5. Where will I find sources for the articles I’ll use in my commentaries? Your school library is an excellent place to start. Don’t confine your search to online publications, the “business” press or even to “news” sources alone. A story from Rolling Stone about online movie distribution, for example, might yield an excellent Section 1 commentary on supply and demand. A story in the Eugene Register-Guard about job losses in Lane County might produce a strong Section 2 commentary on structural unemployment. Be alert to the economic implications of everything you read, regardless of the source. 6. Do you mean I have to read the newspaper, like, every day? Ideally, yes. Certainly, on at least a weekly basis, we will expect that you have been reading news stories (online and in print) about what’s happening with the local, national and international economies. Your Economics teacher will require such readings frequently as part of your homework assignments. Even when not specifically mentioned as homework, keeping up with economic current events will be an important part of your ability to participate in your Economics class. 7. Can I see an example of a “good” commentary from last year? Yes, your Economics teacher may show you examples of commentaries written in previous years. You may also see some commentaries that your friends may have done in previous years. However, the I.B. criteria have changed slightly since last year. It is important to pay attention to the instructions in this packet and not allow yourself to be confused by what former I.H.S. Economics students may have done for their commentaries. 8. What counts in the word limit? The word limit is 750 words. The I.B. moderator and your teacher will not read beyond 750 words for each commentary. It is difficult to do a good commentary in less than 650 words. The following are not included in the word count. • Acknowledgments • Contents page • Diagrams • Labels—of five words or fewer • Headings on diagrams—of 10 words or fewer • Tables of statistical data • Equations, formulae and calculations • Citations (which, if used, must be in the body of the commentary) • References (which, if used, must be in the footnotes/endnotes) Please note that footnotes/endnotes may be used for references only. Definitions of economic terms and quotations, if used, must be in the body of the work and are included in the word count. Please note that a citation is a shorthand method of making a reference in the body of the commentary, which is then linked to the full reference in the footnotes/endnotes. A note on quotations: They weaken the message of the author of the commentary. As the student is being asked to share their understanding, a quote usually indicates that a student is not able to explain the concept in question.

9. How will my commentaries be evaluated? Your Economics teacher will grade each commentary separately on a scale of 0-14 “marks,” according to I.B.’s five grading criteria: Criterion A – Diagrams (0-3 marks) Criterion B – Terminology (0-2 marks) Criterion C – Application (0-2 marks) Criterion D – Analysis (0-3 marks) Criterion E – Evaluation (0-4 marks) Total Score per Commentary up to 14 marks Expectations for each of the above criteria will be discussed in depth in your Economics class. A more detailed grading rubric that expands on each criterion follows in this packet. In addition to the criteria for individual commentaries above, there is a “rubric requirements” criterion that will apply to your entire portfolio of three commentaries taken as a whole. Your Economics teacher will explain how your scores in all of the I.B. criteria will translate into class grades for individual commentaries. 10. How do I get into turnitin.com? You will want to register as a student at www.turnitin.com. Be sure to select the course code for the section that you are in from the list below. For Mr. O’s courses the ID’s are as follows: Section Course code Password Sheldon A Day 7341858 keynes Sheldon B Day 7341860 krugman Churchill A Day 7341862 hayek Churchill B Day 7341865 fisher 11. When are these commentaries due? Tentatively they are slated for the following dates: Commentary 1: 16 December 2013 Commentary 2: 10 February 2014 Commentary 3: 3 March 2014

International Baccalaureate Internal Assessment Criteria for Economics

Criterion A: Diagrams

• This criterion assesses the extent to which the student is able to construct and use diagrams. Level Descriptor

0 The work does not reach a standard described by the descriptors below.

1 Relevant diagrams are included but not explained, or the explanations are incorrect.

2 Relevant, accurate and correctly labeled diagrams are included, with a limited explanation.

3 Relevant, accurate and correctly labeled diagrams are included, with a full explanation.

Criterion B: Terminology

• This criterion assesses the extent to which the student uses appropriate economic terminology. Level Descriptor

0 The work does not reach a standard described by the descriptors below.

1 Terminology relevant to the article is included in the commentary.

2 Terminology relevant to the article is used appropriately throughout the commentary.

Criterion C: Application

• This criterion assesses the extent to which the student recognizes, understands and applies economic information in the context of the article.

Level Descriptor

0 The work does not reach a standard described by the descriptors below.

1 Relevant economic concepts and/or theories are applied to the article.

2 Relevant economic concepts and/or theories are applied to the article appropriately throughout the commentary.

Criterion D: Analysis

• This criterion assesses the extent to which the student can explain and develop appropriate economic theories and/or concepts in the context of the article.

Level Descriptor

0 The work does not reach a standard described by the descriptors below.

1 There is limited economic analysis relating to the article.

2 There is appropriate economic analysis relating to the article.

3 There is effective economic analysis relating to the article.

Criterion E: Evaluation

• This criterion assesses the extent to which the student synthesizes his or her analysis in order to make judgments that are supported by reasoned arguments.

Level Descriptor

0 The work does not reach a standard described by the descriptors below.

1 Judgments are made that are unsupported, or supported, by incorrect reasoning.

2 Judgments are made that are supported by limited reasoning.

3 Judgments are made that are supported by appropriate reasoning.

4 Judgments are made that are supported by effective and balanced reasoning.

Criterion F: Rubric requirements

• This criterion assesses the extent to which the student meets the five rubric requirements for the complete portfolio. o Each commentary does not exceed 750 words. o Each article is based on a different section of the syllabus. o Each article is taken from a different and appropriate source. o Each article was published no earlier than one year before the writing of the commentary. o The summary portfolio coversheet, three commentary coversheets and the article for each commentary are

included.

Level Descriptor

0 The work does not reach a standard described by the descriptors below.

1 Three rubric requirements are met.

2 Four rubric requirements are met.

3 All five rubric requirements are met.

I.B. Economics Current Events Commentaries: Formal Requirements To earn full credit, all commentaries should: _____ 1. Be word-processed and uploaded to turnitin.com accessible to you if requested by your

Economics teacher. _____ 2. Be formatted as follows:

• 1” margins on all sides, all text double-spaced, 12-point Times New Roman or Courier font only

• printed neatly in black ink on one side of 8-1/2” x 11”, white bond or general use office paper

• stapled neatly in the upper left-hand corner, in the following order: o your commentary cover sheet (see below) o body of commentary, followed by Work[s] Cited o photocopy of source article on single-sided 8-1/2” x 11” white paper

only (no originals, no copies larger than 8-1/2” x 11” – you may need to reduce some articles).

_____ 3. Start with a thoroughly completed coversheet. Your teacher will provide you with an electronic document in the proper format that you can fill in. _____ 4. Contain an MLA Work(s) Cited section, with a separate heading, immediately following the body of the commentary. Normally, you will be responding to only one source article, so this section will usually be a single entry. Include endnotes that reference all sources if you use more than one. See below for examples of MLA works cited entries. _____ 5. Include a copy of the source article after the Coversheet. Highlight any information in the article that you discussed in your commentary. _____ 6. Contain one or more (usually 2-3) fully labeled, clearly presented graphs/charts. These graphs can be hand-drawn in black ink, if necessary. However, simple graphs can be created easily in Word, Excel, Pages, Open Office and other freely available software. Graphs should be incorporated directly into the text of your commentary, and they should be actively discussed with reference to specific points in the diagrams. Don’t just “tack them on at the end.” _____ 7. Be 100% free from typographical, spelling, punctuation, grammatical and proofreading errors. It usually helps to have a parent, friend or other teacher read your “final draft” solely for the purpose of catching these errors.

_____ 8. Be your own, individual, original work. Plagiarized work will earn a “0” from the assigning teacher, and will jeopardize your ability to complete the I.B. Economics test, earn an I.B. Diploma, or even receive your high school diploma. The District’s guidelines regarding academic honesty will be enforced strictly.

Here’s the MLA Works Cited format for a newspaper article, adapted from Dianahacker.com: Begin with the name of the author, if known, followed by the title of the article. Next give the name of the newspaper, the date, and the page numbers (including the section letter). Use a plus sign (+) after the page number if the article does not appear on consecutive pages. End with the print medium.

Work[s] Cited

Brummitt, Chris. “Indonesia’s Food Needs Expected to Soar.” Boston Globe 1 Feb.

2005: A7. Print.

When citing online articles, follow the guidelines for printed articles, giving whatever information is available in the online source. Note the print medium, “Web.” End the citation with your date of access.

From an online magazine

Morgan, Fiona. "Banning the Bullies." Salon.com.  Salon Media Group, 15 Mar. 2001. Web. 21 Sept.

2004.

From an online newspaper

Rubin, Joel. “Report Faults Charter School.” Los Angeles Times. Los Angeles Times, 22 Jan. 2005.

Web. 24 Jan. 2009.

The following information does not require referencing:

• information and analysis based on standard economic theory • quotations from the article upon which the commentary is based (see below). •

Anything that does not fall into the above categories must be cited consistently by the student using the recognized academic reference system. Students may use quotations from the articles but students must be careful not to include too many quotations, leaving little room for their own analysis. Quotations from the article do not need to be referenced, although these must be identified clearly by using inverted commas and by, for example, giving a line or paragraph number. References from the internet must be cited fully, including the full web address and the date the site was accessed. Sometimes students use sources that are from a news agency, for example, Thomson Reuters or Associated Press, and these appear in another publication. Students must cite the final publication, not the news agency, as the source.

COMMENTARY COVERSHEET Economics commentary number: HL Number 1

Title of extract: China plans universal health care

Source of extract: The Herald Tribune

Date of extract: 23/01/09

Word Count: 743 words

Date the commentary was written: 04/02/09

Sections of the syllabus to which the commentary relates: Section 1 & 2

Candidate name:

Candidate number: - - -

China  plans  universal  health  care  By  Edward  Wong  Published:  Thursday,  January  22,  2009   BEIJING — China announced that it intended to spend $123 billion by 2011 to establish universal health care for the country's 1.3 billion people. The plan was passed Wednesday at a session of the State Council, the Chinese cabinet. Prime Minister Wen Jiabao presided. Xinhua, the state news agency, said the authorities would "take measures within three years to provide basic medical security to all Chinese in urban and rural areas, improve the quality of medical services and make medical services more accessible and affordable for ordinary people." Providing universal health care is seen by some economists as a way to stimulate domestic spending during the current economic downturn. The Chinese have a high savings rate, and one of the reasons usually cited is their concern about possible medical expenses. Bai Zhongen, chairman of the economics department at Tsinghua University's School of Economics and Management in Beijing, said that establishing universal health care with government-financed insurance would increase general consumer spending. He said the school did a survey in 2007 about the effect of rural health insurance on consumer behavior and "found that in government-sponsored health insurance areas, people are spending more." The government already gives many people a small subsidy to help pay for health care, but more government financing for individual health care would strengthen the economy, Bai said. Xinhua reported that the plan approved Wednesday would aim to provide some form of medical insurance for 90 percent of the population by 2011. Each person covered by the system would receive an annual subsidy of 120 yuan, or more than $17, starting in 2010. Medicine would also be covered by the insurance, and the government would begin a system of producing and distributing necessary drugs this year. The plan also aims to improve health centers in rural and remote areas as well as equalize health services between urban and rural areas, Xinhua reported. Furthermore, the government would begin this year to reform the operations of public hospitals. "Growing public criticism of soaring medical fees, a lack of access to affordable medical services, poor doctor-patient relationship and low medical insurance coverage compelled the government to launch the new round of reforms," Xinhua reported.

P1

P2

Q1 Q2

Commentary # 1

The article, “China plans universal health care” by Edward Wong, states that the Chinese government will spend $123 billion by 2011 to implement health care for 90 percent of China’s population. The Chinese government decided to spend on health care to “improve the quality of medical services and make medical services more accessible and affordable for ordinary people.” Furthermore, the article suggests that better health care “would increase general consumer spending,” since Chinese people tend to save more money due to future medical costs.

There is an opportunity cost for the government medical expenditure. Opportunity cost is the

second best choice that the society must forgo to attain the best alternative chosen from numerous alternatives. The money could be spent on other factors such as education or pollution. However, the government has chosen to spend on health care because it was considered the best sector to spend money on to improve economy.

Subsidy is payment by government to producers or consumers to encourage production or consumption of given products or services. In this scenario, the government provides payment to consumers to encourage consumption of health care. “Each person covered by the [medical] system would receive an annual subsidy of … more than $17 ...” Then the current supply curve (S1) will shift to the right, indicating an increased supply of health care due to subsidies. The new supply

curve is S1 + Subsidy. Assuming that the demand curve remains as D1, the quantity of health care

will increase from Q1 to Q2, while the price for health care decreases from P1 to P2.

The new health care system in China bears positive externalities. Positive externalities are

benefits of production or consumption experienced by society (3rd party) but not by the producers or consumers themselves. Basically, positive externalities are spillover benefits on the 3rd party. The advantages of better health care affect beyond the market transaction that involves only the Chinese citizens and the Chinese government. The additional advantages impact the whole economy and the suppliers of goods or services.

If the Chinese citizens receive

better health care, they will generally stay healthy in their lifetime. This leads to better labor productivity. Labor is human resources needed to generate goods and services. If people are in better condition to work, the efficiency of generating goods will increase. Furthermore, there will be fewer people trying to save money for future medical expenditures. “The Chinese have high

Positive Externalities a

b

Diagram 2

Diagram 1

savings rate and one of the reasons usually cited is their concern about possible medical expenses.” When more consumers spend their income, the suppliers will benefit since their products are being purchased. The blue line between point a and point b represents positive externalities. Marginal benefit indicates the additional benefit of consuming one more unit of a certain good or service and marginal cost is the additional cost of producing one more unit of output. Thus, marginal private benefit (MPB) relates to additional private advantage, whereas marginal social benefit (MSB) relates to additional social benefit. Moreover, the marginal private cost (MPC) concerns with additional private cost while the marginal social cost (MSC) concerns with additional social cost. In diagram 2, the MSB curve is above MPB curve, because there is more marginal social benefit than marginal private benefit, assuming that MPC is equal to MSC. The quantity of health care increases from Q1 to Q2 and cost/benefit increases from P1 to P2.

Even though health care bears positive externalities, the government should re-evaluate the real need to spend on health care. China has many other issues such as pollution and food poisoning. Interestingly, these issues relate to people’s health. Rather than providing medicine for people who were affected by such problems, cleaning up air and scrutinizing food qualities seem more logical in another perspective. The Chinese government should bear in mind that it is the environmental degradation that makes the country in serious need of efficient health care. The health care subsidy program will be in vain if environmental issues are aggravated and become severe enough to exacerbate people’s health. However, a better health care system is still favorable step to encourage consumer spending and to allow the Chinese citizens to stay healthy.