Topic 17: Tragedy of the Commons Experiment

No one in our table take too many fish, because it is simply too hard to 'get' fish. Each person only gets two to three fish. Everyone did tried to take as many as possible, but it is not easy to do so. Only I sacrifice the number of fish I took for the good of the community, because I done this kind of exercise before. The society neither reward person who sacrifice nor person who gain the most benefit, because everyone want to gain the most profit and they don't care about other people. Our strategy change in game 2. We decide to only take two fish on each round and take all on the last round. It does make a difference to know what the rewards are. It is not possible to maximize fish caught per person as well as the number of fish remaining in the pond at the same time, because to maximize fish per person is to make sure the lake is empty. A local area such as sofa area has situation arises. Everyone want to sit on the sofa after lunch, but there are not enough sits for everyone. The problem can be solved through sharing the sits and take turns. Oil and coil are natural resources that are common resources. Global commons are outer space and ocean. Outer space and ocean are not being used wisely because they are not being used completely and efficiently. Our knowledge to those area is small. Not all the resources within the ocean or outer space are being used wisely. People can research more on how to use resources completely.

Topic 16: Game Theory and Chicken

Game theory assumes that people make rational decisions. I think this assumption is valid because no matter what you will make the decision that benefit you the most, even you know other one is going to choose to silence, you will want to be free and choose to confess other people's crime. If you know the other one is going to confess, you still confess too to 
I think the bad outcome might not be always inevitable because after thinking though people maybe able to cooperate and trust each other on the issue. For example: If everyone choose to chase other girls instead of the blond, everyone gets a girl. Although they didn't maximized their self-interest, but they are getting result they would have get. The better outcome that Nash says in the video is that all guys don't chase that blond instead they chase four other girls, so that they won't get in each other's way and they don't insult the other girls. If they all go for the blond, blond will reject them and rest of the girl will reject them too. Adam Smith's invisible hands won't work if the situation is prisoner's dilemma.

Topic 15: What is a Monopoly

The three main characteristics that make a firm a monopoly are only one seller, producing an unique product, and having barrier to entry. The quantity a firm produced is at where the marginal cost and the marginal revenue intersect. The price of the output will be the demand at that same quantity. The costs of the monopolist are just the costs of the production and the benefit of the monopolist are the profit earned from every output they sell. The costs to the society is the consumer surplus that is lost in the monopoly market. One commentator mentions that one of the problem with monopoly is that it transfer income away from consumer to themselves, but economists are not concerned with this. Economists are concerned about inefficiency. Economists encourage monopoly that developed from efficiency.  I agree with there concerned. An efficient firm is very important. It uses its resources to produce most of it. Monopoly can be good in a sense that if average cost is decreasing output, then large scale manufacture in production. I think it is not worth a try to attain a monopoly, because although monopoly is very inefficient. The surpluses are not maximized and deadweight loss occur.

Topic 14: Productivity Experiment

In this experiment, we are testing the efficiency of the production as the number of workers increase. I am a worker in this experiment. The production went well when it got closer to the end. Problems came up when too many workers are doing the same job, when there are not enough capitols, and when people are not specializing.The production didn't go the way I expected, because the production is really random. The number of the production goes up and down, no matter how many worker increased. I think this happen is because the limited capitols and each worker's efficiency. Sometime people slack off a bit, and sometime it is the lack of capitols that cause the production goes bad. This result is pretty surprising because I didn't expect it goes up and down. I thought the graph would be like what the textbook described. The production goes up as the worker increase and when it reach a certain point. It falls back down. I think the company could do for the short-run is company should tie the company's wealth to the worker in order to encourage the workers to work harder, or the boss can make the entire production line more organized. For the long-run, company should increase the capitols, so more people can do other jobs, instead of everyone crazily doing one job.

Topic 13: The Return of the Zeppelin

Determinants of demand are the prices of related goods, expected future prices, income, expected future income, population, and preferences. Determinants of supply are the price of factors of production, the prices of related goods produced, expected future prices, and technology. The determinants that apply to the success of Zeppelin and to Airship Ventures are technology, preference, and expected future price. Bank investment is one of the determinants of success of Zeppelin. If no one invest, the cost will be very great! Technology has totally change the return of Zeppelin. They change the gas in Zeppelin from hydrogen to hellion, so the Zeppelin won't explode when it react with oxygen. Also, the technology make the experience better by reducing the noise and the machine. Airship Ventures is an oligopoly, only three airship company own a Zeppelin and only one in the United States. Three determinants of demand for the success of Airship Ventures are preference, expected future prices, and the prices of related goods. People's preference decrease when the Zeppelin exploded years ago, and decrease the demand for it. The prices of related goods also affect the success.  If a hot air balloon can do the same thing but cheaper, then people will tend to go with hot air ballon. I think airship travel is not a good idea. Only when the price of the Zeppelin is lower than the related goods, I will consider it.

Topic 12: Pizza for Pesos?

The idea of utility is illustrated in the video. The utility of the consumer increase when they are able to pay a pizza with Pesos instead of U.S. dollar. Because the pizza can be paid for pesos, the consumer preference for that pizza patron has increase. They prefer to pay it with Pesos rather than U.S. dollar. I think there will be a big change if the exchange rate between Mexican Pesos and U.S. Dollars raises or fall. If the exchange rate between U.S. dollar and Mexican Pesos fall, then more Hispanic costumers will come here and spent more money. If the exchange rate between U.S. dollar and Mexican Pesos raises, then less consumers will use Pesos to buy pizzas. I think the argument against accepting Pesos is half right and half wrong. Accepting Pesos can increase the consumer spending which help the economy of U.S., but at the same time, Mexican can cross the border with not too much worry, because they can buy food at Pizza Patron and exchange money at Pizza Patron. The exchange of money is also a kind of international trade. Using Pesos to exchange for pizza or U.S. dollar can be regard as international trade.

Topic 11: Brand Names and Utility

Brand names have a huge effect on the utility that a person receive when consuming goods or services. People generally think that goods or services with brand names are better than those with no brand names. To me, it really depends on the product we are looking at. For foods and drinks, my demand curve for brand names and no-name are usually very close, because foods and drinks usually have not much difference on taste or quality, at least I cannot tell the difference. For example: Coke and Pepsi. Coke and Pepsi taste the same to me, so I would only buy the cheaper one. For electronic devices, I would prefer products with brand names more than no-name, because electronic product is a long-term used item. I want to make sure that it won't break that easily because electronics are usually expensive. For example: a random earphone and Beats. I would rather buy Beats because I can trust the quality of Beats, but not the random earphone. If all things being equal, such as quality and durability, I think a product having a brand name will not bring me more utility, because in this case, a cheaper product will bring me more utility than brand name.

Topic 10: Consumer Preference and Utility - Skechers

Skechers access consumer preferences in the target markets by letting the focus group to give them feedback and they have young workforce that seeks out information in nightclubs. Personal selling, sales promotions, public relations, and advertising are four strategies Skechers use to promote their product. Skechers has carried out an edge on the competition in footwear by producing skate shoes, suede sneakers, athletic apparel, sandals, and boots, and all other varieties. Skechers differentiate themselves through locations. Skerchers located in desert and mountainous regions where people are more likely to wear the shoes. Skerchers choose those kind of region, because in mountainous area people tend to break their shoes faster than the people who live on flat landscape. I think the strategies used by Skerchers may actually change my preferences for clothing, shoes, and other stuff. For example: In a extremely cold region, my preference will switch from T-shirts to jackets. I think video games have a high utility for me, because the happiness I gained from getting a new game exceed happiness I gained from many other things.  Sport Cars seem to generally have a high level of utility among other people, but I don't feel they are that valuable. To me, sport car is just same as a car. It transport people around and that’s it.

Topic 9: The Myth of Outsourcing's Effect

• Globalization is the process of interaction between people of different places. The comparative advantage is the advantage of making a product comparing to the other company. Outsourcing is moving out the company into a place that has a comparative advantage over the current one. Globalization and concept of comparative advantage are related to the practice of outsourcing. Because other countries has a comparative advantage on human capital, a country will outsource their factory to other country. The characteristics of an open economy are the money spent don't have to equal to its output and one can loan money from another. The production costs will be expansive without the implementation of outsourcing. The production costs will be cheaper with the implementation of outsourcing, because the other countries have the comparative advantage of doing it. Although outsourcing can increase production and efficiency, but sometime it can't when the labor is not skilled enough, like making airplane. The opportunity cost got lower when factory got outsourced. Because other countries can make the same thing with a lower price.

Topic 8: Debate on Globalization

Globalization to economists is the interdependent economy, but also interaction between people from different places in all ways. The benefits of globalization are technological expansion, liberalization of policies, and more consumer choices. Globalization also lead the Less-developed countries to increase in economic and indirectly lead the LDC to build new roads and other infrastructure. The costs of globalization are corporate accountability, income disparities, adverse effect, and people are displaced. Globalization has affected my life very much. Almost all stuffs I used in live are imported from foreign countries. The computer I used is probably made in China and the material it was made is probably from Africa. The resources are shipped from Africa to China. Without globalization, these are probably not possible, even it is possible, it will be very expensive. Without globalization, many of the invention or production will not be possible. I wouldn't able to communicate with my friend instantly. Taiwan been affected culturally, the culture of Taiwan is a mixed of Western and Eastern culture. People I know including me are not wearing traditional Chinese clothes, but American style clothing.

Topic 7: Government Farm Subsidies

The government subsidies go to farmers who earn less than one-quartar million a year and everyone should receive according to the situation. The producers of the video do not support the idea of farm subsidies. The producers thinks that all the subsidies go to the rich farmer, but not the poor farmer. People are leaving the town, because they are not earning enough. It just like a treasure box, people who got the most out of it just run away with it. I agree with what the producers say, because there is no point to give "subsidies" to rich people! Other kinds of subsidies should be allowed, only if they are fair. I would say completely free market would be better, but I prefer some subsidies, because some nature disaster and some unfairness just could not be eliminated. Education should be supported by subsidies. All college and schools should be receive some subsidies, because money certainly help the education by hiring better teachers, improving environment, and getting the newest way of teaching and information. People who don't have school-aged children should pay taxes. More educated people certainly benefit people who pay the taxes. 

Topic 6: opportunity cost of a college education

Marginal analysis is analysis of your next unit of addition stuff. People can compare the cost of their action to its benefit and make a better decision. The marginal costs of one more year of higher education are the experience you can gain from working, and the time you can travel around or do anything you want. The marginal benefit of one more year of higher education is the better job you can get in the future. The college graduates earn $1 million more in their working lives than non-graduates is not true. There are statistics about non-graduates earn more than the college graduates. The non-graduates earn money and they gain experience from the job during the time the college graduates are studying. The non-graduates are drop of college because most of them cannot afford tuition even with finance help. To them, the cost of college is too much compare to the benefit of going to college. After I watched the video, my mind still didn't change about going to college. Although it is expensive, but I believe I can live better after I graduate the college. 

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!!!

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