Topic 5: Ripple Effects and Elasticity

Ripple Effect is when a single event influences all other stuffs around it and creates patterns that are difficult to predict. The rise in the price of oil can raise prices almost every item in the store and automobiles. The cost of transporting goods and cost of producing goods become more expensive than before, because of the rise in price of oil, so the price of the goods also rises. It affect my family deeply, because not only the price of goods rise, but driving automobiles also become more expensive. Corn is a good example of ripple effect. Corn can be either food or bio-fuel. If we make more bio-fuel, the price of corn will rise. People will have to buy less of the goods. The idea of elasticity affect the markets very much. When an object is elastic, a little price change can shift the entire quantity demand. When a good is inelastic, a big shift in price still won't change the price of the good. Foods and water are relatively inelastic to me, because no matter what the price of the food and water is. I will still have to buy it. Toys and games are relatively elastic, because when the price of the games rises even 50 dollars. I will not buy it.

Topic 4: Where Choices Lead

Each person faces decisions everyday. When we face decisions, we need to make choices and trade-off. For me, the opportunity cost of getting into PAS is National Experimental High School. I think the decision that I made were rational. The costs for going to PAS are the tuition, and Chinese and other courses that I can learn in local school. The benefits for going to PAS are getting better at English and going to good University in U.S. in the future. After I compare the costs and benefits, I think the benefits exceed the costs. The opportunity cost of getting me into Ap Micro is study hall. I think this decision that I made was rational. The benefits of learning Ap Micro are getting a better grade and earning an Ap credit. The costs for learning Ap Micro is time that I can use to study and do homework while I am in study hall. After I compare the cost and benefit, I think my choice is correct. The benefit exceed the cost. Getting a Ap score is way better than studying in study hall. In study hall, I might get distracted, but in Ap Micro, I won't. If I have a total control of my life, I would do the same thing, because both choices have their benefit exceed the cost of it.

Topic 3: Incentives at school

After watching the video "Incentives for Perfect Attendance," I realize our school uses incentives to get students to go to school, too. Some of the incentives school use are getting expelled, giving detention and incomplete credits, and sending students home. I think the stronger incentives for getting students to attend school are punishments. Students in PAS spent a lot of money to get educated. Getting expelled, detention, and incomplete credits are a waste of money. Also, parents won't be happy about it. Parents will punish you again. You are getting a double punishments if you did go to school. I go to school because of multiple incentives: Not to get expelled and to meet my friends. These incentives are very effective, because I haven't missed a school day so far in my high school years, even I'm sick. I think the goal of the schools in the video is not only to get people to school, but also to get people educated. The goal for both school in video and PAS is the same. I think the reason it is so different is that one is private and one is public. Private school is expensive, and public school is free.

Topic 2: Scarcity at School?

Humans always want more than they can get with the given resources and time. The constrain of resources forces us to make trade-offs. People in PAS also face trade-offs. Choosing between Ap course and normal course is a trade-off. Choosing an Ap course can get a better GPA, but it is harder to get an A. Choosing normal course is easier to get an A, but the GPA is lower. Office staff also face trade-offs. Whether to install vending machine. If school install a vending machine, it will allow students to buy drinks conveniently, but the trash in school might increase. If school does not install a vending machine, the trash will not be a lot, but the students can't conveniently buy drinks. I face trade-offs and scarcity myself, too. My demand of time is greater than supply. My trade-offs is that whether I should listen in class or sleep in. If I sleep in the class, I will not able to learn new material and I have to spend time in home to study, but I won't be very tired. If I participate in class, I will learn new materials, but I will be very tired. Everyone in School faces trade-offs from choosing classes, whether to install vending machine, and whether I should sleep in class. We always want more than our resources can provide.

Topic 1 Big Questions

Think about PAS as an economy, and everyone at PAS as both a producer and consumer. What is the "what"? In other words, what goods and services are produced? Who produces those goods and services? To students in PAS, the goods and services is the education that all staffs provided. To the teachers in PAS, the goods and services will be the money we paid for the school. Teachers provide education and students provide tuition. How are those goods and services produced? Teachers provided education by teaching material from the textbook. Students provided tuition from their parents. For whom are those goods and services produced? The education are provided for the students and the tuitions are produced for the teachers. Our parents and Ms. Pamela make the choices governing what, how, and for whom goods and services get produced. Both Students and teachers are acted as producer and consumer. Student received education in exchange for tuition. Teachers received salaries in exchange for time and knowledge.

Take a closer look at students and teachers, they both have self-interests. Teachers need money, so they tradeoff their time to teach students. Students want education, so they tradeoff their money to learn new knowledge. The social interest of this is that the entire society become better. People are getting jobs and people are getting smarter!!!