Undervisningsbeskrivelse

Termin August 2016 – May 2017

Uddannelse HHX

Lærer(e) Nick Jensen

Institution Silkeborg Business College

Fag og niveau International Økonomi niveau A

Hold HH2E16

Oversigt over gennemførte undervisningsforløb

Theme 1 The foundations of economics

Theme 2 Demand and Supply

Theme 3 Elasticities

Theme 4 The level of overall economic activity

Theme 5 Indirect taxes, subsidies and price controls

Theme 6 Market structures

Theme 7 Market failures and environmental/climate policy

Theme 8 The aggregated level of economic activity

Theme 9 The labor market and employment

Theme 10 Inflation and deflation

Theme 11 Equity in the distribution of income

Theme 12 The economy of the USA

Theme 1 The foundations of economics

Contents Core material:

•Economics, IB Course companion by Blink and Dorton (2011), Oxford, chapter 1

Duration

4 modules of 60 min.

Learning

objectives

• Define opportunity cost and understand its link to relative scarcity and choice

• Describe the factors of production

• Explain, illustrate, and analyze production possibility curves

• Distinguish between micro and macroeconomics, positive economics and

normative economics, private sector and public sector

• Explain and understand the concept of “ceteris paribus”

• Explain and illustrate basic models of economies

• Distinguish between different rationing systems

• Compare and contrast the advantages and disadvantage of planned and free market

economies

• Distinguish between economic growth and economic development

• Define sustainable development

Concepts and

models

• Scarcity

• Choice

• Opportunity costs

• Factors of production

• The production possibility curve

• Economic rationing systems

• Economic growth

• Sustainable development

Competences

• Economic thinking

• Economic problem processing

• Economic modeling

• Economic reasoning

• Economic data treatment

• Economic presenting

• Economic tools

Working forms Dialogue and discussion – traditional classes, group discussions, presentations, quiz

Theme 2 Demand and supply

Contents Core material:

• Economics, IB Course companion by Blink and Dorton (2011), Oxford, chapter 2

Supplementary material:

• Teacher’s PowerPoints

• Revision sheet for textbook chapter 2

• Various demand and supply curve exercises

Duration

Ca. 6 modules of 60 min.

Learning

objectives

• Define market and demand

• Explain the Law of Demand and the Law of Supply, and the determinants of each

• Distinguish between a shift of a demand and supply curve and a movement along a

demand and supply curve

• Explain and plot a linear demand and supply function

• Analyze changes in demand and supply

Concepts and

models

• Demand

• Supply

• Market diagrams

• Price and non-price determinants of demand and supply

• Normal goods

• Inferior goods

• Substitutes, complementary and unrelated goods

• Tastes & preferences

• Equilibrium and the effect of changes in demand and supply upon the equilibrium

• The role of the price mechanism

• Effective demand and supply

• Law of demand and supply

• Assumptions of the market model

• Distinctions between a movement along a curve and a shift in the curve

Competences

• Economic thinking

• Economic problem processing

• Economic modeling

• Economic reasoning

• Economic data treatment

• Economic presenting

• Economic tools

Working forms Dialogue and discussion – traditional classes, group discussions, presentations, quiz

Theme 3 Elasticities

Contents Core material:

• Economics, IB Course companion by Blink and Dorton (2011), Oxford, chapter 4

Supplementary material:

• Teacher’s PowerPoints

• Revision sheet for textbook chapter 4

• The Cost of Love by The Economist. February 14, 2007.

http://www.economist.com/blogs/freeexchange/2007/02/the_cost_of_love

• Why the low oil price will not harm sales of electric cars by S.W. February 24,

2015. http://www.economist.com/blogs/economist-explains/2015/02/economist-

explains-21

• Vanilla shortage could lead to ice-cream price rise, makers warn by Zoe Wood.

March 25, 2016. https://www.theguardian.com/business/2016/mar/25/vanilla-

shortage-ice-cream-price-rise-uk-madagascar

Duration

Ca. 6 modules of 60 min.

Learning

objectives

• To present definitions, formulas and explanations of values of PED; XED, YED

and PES.

• To account for the range of values of the elasticities

• To account for the factors determining the strength of the elasticity

• To show PED values are changing alongside the demand curve

• o explain how the relative area of price and quantity changes impact the PED

value through use of revenue boxes

• Understand the implications of elasticity information for businesses and

governments

Concepts and

models

• Price elasticity of demand (PED)

• Cross elasticity of demand (XED)

• Income elasticity of demand (YED)

• Price elasticity of supply (PES)

• PED and oil prices

• The determinants of PED, XED, YED and PES

Competences

• Economic thinking

• Economic problem processing

• Economic modeling

• Economic reasoning

• Economic data treatment

• Economic presenting

• Economic tools

Working forms Dialogue and discussion – traditional classes, group discussions, presentations, quiz

Theme 4 The level of overall economic activity

Contents Core material:

• Economics, IB Course companion by Blink and Dorton (2011), Oxford, chapter 13

Supplementary material:

• Teacher’s PowerPoints

• Revision sheet for textbook chapter 13

• Various articles located by the students

Projects:

• International Economics theme day – GDP: The Danish Economy and GDP

Developments

➢ CIA World Factbook, IMF.org, OECD.org, Danmarks Statistik

➢ Various articles located by the students

Duration

5 modules of 60 min.

Learning

objectives

• Identify the five macroeconomic goals

• Describe and illustrate the circular flow of income model

• Distinguish between the output approach, the income approach, and the

expenditure approach to measuring national income

• Calculate and analyze GDP from national income data

• Define and distinguish between GDP and GNI

• Define and distinguish between nominal and real GDP and GNI

• Explain the meaning and significance of Green GDP

• Evaluate the uses of national income statistics

• Explain and illustrate the business cycle and its phases

• Distinguish between a decrease in GDP and GDP growth

Concepts and

models

• GDP and GNI

• The expenditure method

• Nominal and Real GDP

• GDP per Capita

• Circular Flow of Income

• Leakages and injections

• Quality of life

• External costs

• Informal markets

• The business cycle

Competences

• Economic thinking

• Economic problem processing

• Economic modeling

• Economic reasoning

• Economic data treatment

• Economic presenting

• Economic tools

Working forms Dialogue and discussion – traditional classes, group discussions, presentations, quiz

Theme 5 Indirect taxes, subsidies and price controls

Contents Core material:

• Economics, IB Course companion by Blink and Dorton (2011), Oxford, chapter 5

Supplementary material:

• Teacher’s PowerPoints

• Revision sheet for textbook chapter 5

Duration

Ca. 6 modules of 60 min.

Learning

objectives

• Describe the specific and the indirect taxes

• To give examples of the various taxes

• To explain how and why the value of elasticity has an effect on the tax burden

• To explain how the imposition of a an indirect tax may affect the consumers,

producers and the government

• Define subsidy

• Explain how the granting of a subsidy may affect consumers, producers and the

government

• Explain, distinguish between, illustrate and give examples of maximum and

minimum price controls

• Give examples of subsidies and price controls from the real world

Concepts and

models

• Percentage tax and specific tax

• Price controls: Price floors and price ceilings

• Subsidies

Competences

• Economic thinking

• Economic problem processing

• Economic modeling

• Economic reasoning

• Economic data treatment

• Economic presenting

• Economic tools

Working forms Dialogue and discussion – traditional classes, group discussions, presentations, quiz

Theme 6 Market structures

Contents Core material:

• Economics, IB Course companion by Blink and Dorton (2011), Oxford, chapter 7-

10

Supplementary material:

• Teacher’s PowerPoints

• Revision sheet for textbook chapter 7-10

• Perfect Competition Part 1 by LearnEcon. Published April 20, 2012.

https://www.youtube.com/watch?v=aFBGsad_qE0

• Monopoler er kun sjove i brætspil by Agnete Gersing. February, 2014.

http://www.kfst.dk/Indhold-KFST/Synspunkter/20140220-Monopoler-er-kun-

sjove-i-braetspil?tc=4600FEB09BFC4A5B88D5D127DCC88CAB

Duration

3 modules of 60 min.

Learning

objectives

• Explain the assumptions under the various market structures

• Distinguish between the demand curve for the industry and for the firm in perfect

competition

• Explain how the firm maximizes profit in the various market structures

• Explain the long run equilibrium under each of the market structures

• Explain and illustrate the movement from short to long run in the market structures

• To give examples of markets/industries in the various structures

Concepts and

models

• Perfect competition

• Monopoly

• Oligopoly

• Monopolistic Competition

• The Prisoner’s Dilemma

• Game theory

Competences

• Economic thinking

• Economic problem processing

• Economic modeling

• Economic reasoning

• Economic data treatment

• Economic presenting

• Economic tools

Working forms Dialogue and discussion – traditional classes, group discussions, presentations, quiz

Theme 7 Market failures and environmental/climate policy

Contents Core material:

• Economics, IB Course companion by Blink and Dorton (2011), Oxford, chapter 12

Supplementary material:

• Teacher’s PowerPoints

• Revision sheet for textbook chapter 12

• Public sector: merit and demerit goods. February 17, 2011.

https://www.youtube.com/watch?v=OMp2f4Ll540

• Externalities: When Is a Potato Chip Not Just a Potato Chip? by Learn Liberty.

December 20, 2012. https://www.youtube.com/watch?v=ljrBEdg-QU4

• Global priorities bigger than climate change by Bjorn Lomborg. February 2005.

http://www.ted.com/talks/bjorn_lomborg_sets_global_priorities#t-342045

• The Tragedy of the Commons as a Market Failure by Jason Welker. January 16,

2012. https://www.youtube.com/watch?v=NZAwGoIAFgM

Duration

Ca. 6 modules of 60 min.

Learning

objectives

• Define market failure

• Explain, and give examples of merit goods, demerit goods, and public goods

• Distinguish between, illustrate and give examples of positive and negative

externalities of production and consumption

• Evaluate different government methods intervention to deal with the existence of

externalities

• Define common access resources and sustainability

• Explain, illustrate and give examples of common access resources

• Explain and illustrate the threat to sustainability posted by the use of fossil fuels in

developed countries and over exploitation of agricultural land in developing

countries

• Evaluate, using diagrams, possible government responses to threat to sustainability

Concepts and

models

• Market failure

• Merit goods and demerit goods

• Positive and negative externalities

• Sustainability

• Fossil fuels

• Cap and trade systems

• Common access resources

• Free-rider problem

Competences

• Economic thinking

• Economic problem processing

• Economic modeling

• Economic reasoning

• Economic data treatment

• Economic presenting

• Economic tools

Working forms Dialogue and discussion – traditional classes, group discussions, presentations, quiz

Theme 8 The aggregated level of economic activity and the macroeconomic equilibrium

Contents Core material:

• Economics, IB Course companion by Blink and Dorton (2011), Oxford, chapter 14,

15, and 16

Supplementary material:

• Teacher’s PowerPoints

• Revision sheet for textbook chapter 14, 15, and 16

• German business sentiment at three-year high. July 23, 2010.

https://www.ft.com/content/36f6705e-963c-11df-96a2-00144feab49a

• Germany Ifo Business Climate Index 1991-2017.

http://www.tradingeconomics.com/germany/business-confidence

• Headwinds will buffet Germany. July 16, 2010. http://moneyweek.com/headwinds-

will-buffet-germany-49507/

• Historisk regnefejl kan have kostet Thorning magten. January 21, 2017.

http://www.b.dk/politiko/historisk-regnefejl-kan-have-kostet-thorning-magten

• Fear the Boom and Bust – Keynes vs. Hayek rap battle.

https://www.youtube.com/watch?v=d0nERTFo-Sk

Duration

Ca. 8 modules of 60 min.

Learning

objectives

• Distinguish between demand and aggregated demand, and supply and aggregate

supply

• Define and illustrate aggregate demand and aggregate supply

• Explain determinants of the components of AD and SRAS

• Illustrate shifts in AD curve and the SRAS curve

• Explain how governments can use monetary and fiscal policy to alter the level of

AD

• To explain the nature of a government budget

• Distinguish between Keynes and Hayek’s macroeconomic theories

• Account for various supply-side and market-based policies that affect aggregate

supply

• Identify the equilibrium level of national income/output

• Explain the multiplier effect

Concepts and

models

• Aggregated demand (AD) - the spending as C+I+G+(X-M) and the AD curve

• Components changing the AD

• Government policies affecting AD: Fiscal policy and Monetary policy

• Aggregated Supply (AS)

• Short run AS (SRAS) and shifts in SRAS

• Neoclassical and Keynesian views on SRAS and LRAS

• Production and factors of production and impact on LRAS

• Supply-side policies (Interventionist and market based)

• Macroeconomic equilibrium (short run)

• The multiplier effect

Competences

• Economic thinking

• Economic problem processing

• Economic modeling

• Economic reasoning

• Economic data treatment

• Economic presenting

• Economic tools

Working forms Dialogue and discussion – traditional classes, group discussions, presentations, quiz

Theme 9 The labor market and employment

Contents Core material:

• Economics, IB Course companion by Blink and Dorton (2011), Oxford, chapter 17

Supplementary material:

• Teacher’s PowerPoints

• Revision sheet for textbook chapter 17

• Ministry of Employment: The Danish Labor Market

http://uk.bm.dk/en/Themes/The%20Danish%20Labour%20Market.aspx#

• Kort se den største gruppe af ledige i din kommune. Bo Elkjær og Benjamin

Dalsgaard Hughes. 12. Juni 2015.

https://www.dr.dk/nyheder/politik/valg2015/kort-se-den-stoerste-gruppe-af-ledige-

i-din-kommune

• Tax in Denmark - An introduction to the Danish tax system for non-Danish

speakers. 3rd edition. March 2016. SKAT.

https://www.skat.dk/getFile.aspx?Id=130346

• Crowding Out Concept Clip with Mike Brandl. Nov 12, 2013.

https://www.youtube.com/watch?v=udHOvofAPWU

Duration

Ca. 6 modules of 60 min.

Learning

objectives

• Explain the labor market as a market of demand and supply of labor

• Account for the factors influencing the supply and demand for labor

• Account for different types of unemployment

• Describe substitution and income effects

• Account for wage systems

• Explain the international labor organizations’ approach to measuring

unemployment

• Describe the various reasons for unemployment

• Explain the difficulties involved in measuring unemployment

• Discuss the costs of unemployment

• Evaluate the measures that may be taken to reduce unemployment

Concepts and

models

• Demand and supply of labor

• Unemployment

• Hidden unemployment

• Costs of unemployment

• Causes of unemployment

• Real-wage, Cyclical, Natural, Frictional, Seasonal, and Structural unemployment

• Minimum wages

• Full employment

• The Ministry of Employment (Beskæftigelsesministeriet)

• Flexicurity

• Automatic Stabilizers

• Crowding out

Competences

• Economic thinking

• Economic problem processing

• Economic modeling

• Economic reasoning

• Economic data treatment

• Economic presenting

• Economic tools

Working forms Dialogue and discussion – traditional classes, group discussions, presentations, quiz

Theme 10 Inflation and deflation

Contents Core material:

• Economics, IB Course companion by Blink and Dorton (2011), Oxford, chapter 18

Supplementary material:

• Teacher’s PowerPoints

• Revision sheet for textbook chapter 18

• What is inflation? Economics explained – video. December 15, 2015.

https://www.theguardian.com/business/video/2015/dec/15/what-is-inflation-

economics-explained-video

• Food deflation hits Western Canadian grocers. Glen Korstrom. March 24, 2017.

https://www.biv.com/article/2017/3/price-war-heats-western-canadian-grocers/

• The Consumer Price Index video. http://www.investopedia.com/video/play/what-is-

the-consumer-price-index-cpi/

• Consumer price inflation basket of goods and services: 2017. March 14, 2017.

https://www.ons.gov.uk/economy/inflationandpriceindices/articles/ukconsumerprice

inflationbasketofgoodsandservices/2017

Duration

Ca. 6 modules of 60 min.

Learning

objectives

• Explain the concepts of inflation, disinflation, and deflation

• Explain how inflation is measured

• Calculate the rate of inflation using data

• Discuss the problems in measuring inflation

• Discuss the costs and causes of inflation and deflation

• Explain how government and central bank policies may be used to reduce inflation

Concepts and

models

• Inflation, disinflation, deflation

• Price stability

• Consumer Price Index (CPI)

• Purchasing power

• Real income

• International competitiveness

• Hyperinflation

• Deflationary spiral

• Demand-pull, cost-push

• Excess monetary growth

Competences

• Economic thinking

• Economic problem processing

• Economic modeling

• Economic reasoning

• Economic data treatment

• Economic presenting

• Economic tools

Working forms Dialogue and discussion – traditional classes, group discussions, presentations, quiz

Theme 11 The economy of the USA

Contents Core material:

• International Economics A Exam Assignment -May 2013. The Economy of the USA.

The class worked on the exam assignment in pairs and turned in the assignment as a

collaborative project.

Duration

6 modules of 60 min.

Learning

objectives

• To practice the written exam form for the course

• To apply concepts and models learned in class throughout the year

Concepts and

models

• Imports

• Multiplier effect

• Welfare models

• Automatic stabilizers

• Supply and demand

• Mortgage bonds

• Price developments

• Private consumption

• Monetary and fiscal policies

Competences

• Economic thinking

• Economic problem processing

• Economic modeling

• Economic reasoning

• Economic data treatment

• Economic presenting

• Economic tools

Working forms Group work, written assignment