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What is Money??

Skill #3

Game theory involves mathematics in order to observe how groups of people interact and was begun by Jon Van Neumann, who was part of the Manhattan Project. It is to look at how the people interact and predict what they choose to do. Game theory has two main branches: noncooperative and cooperative game theory. Noncooperative manages how the individual interacts with others, to accomplish its goal. Game theory is part of the economic theory, with three other branches: decision theory, equilibrium theory, lastly mechanism design theory. An example of game theory is when two robbers are caught stealing a car. They have past records and they have been wanted for a while. The two robbers are taken into two separate rooms and each are given the option of ratting each other out, and receiving a less harsh punishment, or not saying anything. If they chose to deny it, and the other robber told, then he would get more time. The time is different for each one, and they have to weigh their options, moreover they do not know what the other person is going to do. Game theory is applied to economics when firm are controlling a specific situation, oligopoly,and there is high competition between them, which would result in high prices for the buyers.

http://levine.sscnet.ucla.edu/general/whatis.htm

http://www.econlib.org/library/Enc/GameTheory.html

Skill #4

In a recent study of child support and custodial parents, 18. 3 percent of fathers were the custodial parents. Many of those fathers, were never paid child support, in contrast to the 25.1 percent of custodial mothers. These gaps are widened or lessened in different child support arrangements, citizens who are unmarried, and races.The custodial mothers are struggling to find the money to pay for the child support, however the dads are doing a lot better financially. Many custodial mothers are living in poverty, which is about 31.8 percent of the custodial mothers .Non-custodial mothers tend to give more to the child support to help with emergencies, food, or school,which in turn helps the custodial father. In a recent study, there are many custodial mothers who are employed in part time jobs, or are unemployed. Although the percentage of custodial mothers who are more likely to be poor is still kind of high, over the last 15 years, that percentage has lowered, and the gap between men and women is decreasing. Some of these women are marginally attached workers, while others are discouraged workers. Large numbers of custodial mothers are living in poverty, have part time jobs or are unemployed, and do not have a set agreement with the amount of child support.With the downturn in the economy , there has been an increase in unemployment, which leads to unstable jobs and less income. With part time jobs it is not enough for either custodial parent to get out of poverty therefore many depend on child support. Unemployment makes it a lot harder for either parent to pay child support, additionally it then leads to them owing a lot more money. The unemployment rate this year has been around 5.5 percent, and it has slightly decreased over the span of the four months. The decrease in unemployment can be a positive thing but the closer it gets to zero the more competitive jobs are going to be, and it will be harder to change jobs. In the future, the economy can get a little better, which will leave a lot more jobs available. From the jobs,the custodial or noncustodial parent can earn more money to pay for child support,and slowly get out of poverty.

http://fivethirtyeight.com/features/are-moms-less-likely-than-dads-to-pay-child-support/

Inflation is a rise in the general price with the loss of currency. The money loses its value, at the same time prices are steadily increasing. The inflation rates can be either a positive or negaive thing in te economy.When there is a moderate rise in inflation, that can indicate that the economy is healthy. When inflation gets too high, the economy can suffer greatly. Citizens will start to save the money rather than investing it. In Brazil, the inflation rates were 80% every month. The presidents tried to help the economy either by freezing the prices or taking money out of the banks, however none of that worked.The rate of the inflation kept rising quickly, consequently people decided to save their money,therefore the money lost its value too. The value of money was declining and the price of goods and services were increasing rapidly. There was a group of people that took initiative and made people believe in the virtual money. The virtual money created a more stable and reliant money source, compared to the old one where the merchants had to change the prices every day and the prices were unreliable. Inflation can occur due to the rise in demand relative to the supply there is. When a new product comes out, many people are going to want it, neverthless there are only so many being produced. There is high demand in correspondence to the supply. Accordingly, the company charges and pays more to secure the materials needed, moreover the money goes to the increasing inflation rate.This meme is attempting to convey how inflation has changed the prices of goods over time. Goods and services are more expensive now than a couple years ago. A movie ticket, approximately 30 years ago, was around $0.25 each, today they are from $9 up, furthermore the price varies on the showtime. I agree with it because everything has become more expensive from college tuition,to movie tickets, to house rent.

Draftback

After looking at my draftback, I realized that after I finished an idea, I wouldn't go back and expand on it or fix it. My draftback showed me that I lack in connecting what I am writing about, and revisions. Also, i noticed that I only did it during class and didn't do much out of class. I was hurried and if I had taken the time to do it at home, the essay could have been a lot better. I could have done a lot better by revising it, and going more in depth.

Keynes vs. Hayek

Keynes and Hayek have opposing views on the role of the government in the economy. Hayek does not want any interference from the government, it wants everything to happen on its own. One of Hayek’s philosophy is that the economy is organic, so it is a natural process and should not be interfered with, furthermore Hayek advocates for personal freedom and slow stabilizing recovery. The problem is that it is a slow process and Hayek does not care about the short term suffering. Keynes, on the other hand, considers that the government should be active in the boom and busts of the economy, as well as a speedy recovery.The government is the stimulus to avoid a halt in the circular flow, in order to do that, there should be government spending. This would lead to stabilizing the economy quicker. The economy is a machine, and the government should “steer” it. Kaynes is a top down guy, while Hayek is a bottom up guy.

Nature vs. Economy

Earth Day is not a day about saving the endangered animals, or protecting the trees, it is about us reestablishing proper realistic perspective on our place and time in this planet. Time for us is small in comparison to the time the earth has been here. What could be a relatively big deal for us, could mean nothing to nature. We are here for a short period of time, furthermore the earth has been and will be here longer. Nature performs positively without the intrusion of humans. Economics and nature can cooperate. Economics is short term therefore our expanding and use of the Earth's resources is fruitless compared to the amount of time we are going to be present. We are insignificant, and all our fears amount to nothing, so why keep expanding when in the end nothing is going to be of importance.

U1-U6

U1: My name is Jerry and I live with my family of 5 in Nevada. We are poor, and there is no income coming in. I am African American and have been in jail twice. I dropped out of high school a year ago, and has been trying to get a job.

U2 :Samantha is a 20 year old woman who works at the toothpaste factory that puts on the caps on the toothpaste tubes. She can get so many done in an hour. There is a new machine out that could do three times more as her, and a lot faster too. The introduction of that specific machine terminated Samantha’s job.

U3: Seth is a 25 year old man who works at Starbucks. He has worked there for the last two years. The workers have noticed that a lot of the pastries would go missing, and that there was tons of trash in the back office, They realized that since Seth was too lazy to walk outside and throw the trash away, he would just hide it in the back room. Seth would also take food when he was working and not pay. Therefore, Seth was fired.

U4: Patricia went to college and got her degree in Fine Arts. She had a very high paying job at a school, then quit her job due to personal reasons. After a while, she applied to many jobs, but none called, except one, which was an entry level job. Patricia gave up looking for jobs.

U5: Matt worked as a physical therapist , but had to move due to his mom getting sick. When he got to Alabama, he applied to different therapy centers. Everything was full, until June when everyone had to reapply.

U6: Alex works at Target as a part time worker. She is a single mother with two children. Alex requested to be a full time worker, but there were already enough people working full time. They declined that request and she stayed as a part time worker.

Raul Castro was a mexican born leader, and it was a hard road of denials to get there. Raul Castro was always told no, that was he was crazy,or that he was not going to accomplish what he wanted to do. He came into the United States when there was a lot of discrimination towards Latinos, so he decided to do something about it. Raul Castro came from a very poor family,and had to forage for food. He would take care of his family, which was his mom and 12 children. He was underprivileged, yet continued to strive to success. When he would go to school and noticed that the bus would pass by and not pick them up, he started to ask himself questions of why the other kids could ride and not them? He saw and experienced the discrimination, and realized it was not just to Latinos, but everyone else. Raul was discouraged from going to college,but he still went to NAU on a football scholarship. Although he was culturally isolated, he pushed to get his degree in teaching, and boxed. Another turning point was when his brother said he was going to drop out. Raul decided to be proactive, and apply for jobs. The only job he got was by the border. He strived to make a change by becoming part of it

. In his time, there was a lot of discrimination going on, yet it was a lot faster and easier for immigrant families to come to the US. Now, there are stronger immigration laws, and a lot more security. Receiving an education, and continuing with the desire to be successful can be plausible at this time. He wanted to be successful and see a change, and that is what he did .

alexrocks532-blog

TED Conversation 2

According to GDP (General Domestic Product), it allows us to measure their economic success of a country, for example, the United States. Our position being above average gives us an understanding that we are doing fairly well and are financially stable. We are also able to calculate the country’s happiness with the help of the Happy Planet Index which could be influenced in many ways such as from resources that the nation is receiving. There are numerous things that can make an individual happy besides money or the technology we use in our daily lives. We wish that happiness could be exactly measured, but sadly it can not be possible because we can not measure an individuals exact level of emotions and satisfactory.

mariaa-vanilla

Do you agree or disagree to any particular point? Yes the United States is considerably richer and financially stable, compared to New Zealand, however we are a bit lower on Social Progress than them. Do you think that our economic can increase social progress? Why or why not?

alexrocks532-blog

I do agree and realize that we are on the lower scale of the Social Progress. I think over time it could be possible. There are multiple factors that could play a role into changing our position such as technology. It could allow more sufficient and better interactions with others in our society.

mariaa-vanilla

There are many factors that come into play with the Social Progress Index, and the Happy Planet Index also. We should and need to find resourceful ways to make that happen. Anything is possible if we set ourselves to do it, and hopefully in the future we are able to.

mariaa-vanilla

Ted Conversation 2

GDP, or Gross Domestic Product, allows us to measure and compare different countries and their economic success. GDP measures this through the economic success in a global economy. The United States is considerably richer than New Zealand, however has a lower standing in Social Progress. One point that I concur with was the place we grew up, school, and the news can impact our view of how life is on this planet. The ultimate outcome of a nation is how successfully it is at creating happy and healthy lives for its people. This leads to the Happy Planet Index, which is a measure of progress that shows the happiness of the people. The United States is happy, however the conflict is the amount of resources being used, furthermore at the speed we are using them is exceptionally high.

alexrocks532-blog

Yes, I agree with what you said. The surroundings that we are exposed to really do have an impact on how we live in the world. Are there/what are some things that you think have helped you be happy or that could have possibly played a role in the Happy Planet Index?

The ability and resources to have an education make me happy. We can complain about not wanting to go to school, or what not, but once we compare ourselves to other countries, we can see that the United States is well off. There are some countries like Costa Rica that has the same Social Progress as some Western European countries, but a lower GDP. Why do you think this is?

alexrocks532-blog

TED Conversation 2

According to GDP (General Domestic Product), it allows us to measure their economic success of a country, for example, the United States. Our position being above average gives us an understanding that we are doing fairly well and are financially stable. We are also able to calculate the country’s happiness with the help of the Happy Planet Index which could be influenced in many ways such as from resources that the nation is receiving. There are numerous things that can make an individual happy besides money or the technology we use in our daily lives. We wish that happiness could be exactly measured, but sadly it can not be possible because we can not measure an individuals exact level of emotions and satisfactory.

mariaa-vanilla

Do you agree or disagree to any particular point? Yes the United States is considerably richer and financially stable, compared to New Zealand, however we are a bit lower on Social Progress than them. Do you think that our economic can increase social progress? Why or why not?

Ted Conversation 2

GDP, or Gross Domestic Product, allows us to measure and compare different countries and their economic success. GDP measures this through the economic success in a global economy. The United States is considerably richer than New Zealand, however has a lower standing in Social Progress. One point that I concur with was the place we grew up, school, and the news can impact our view of how life is on this planet. The ultimate outcome of a nation is how successfully it is at creating happy and healthy lives for its people. This leads to the Happy Planet Index, which is a measure of progress that shows the happiness of the people. The United States is happy, however the conflict is the amount of resources being used, furthermore at the speed we are using them is exceptionally high.

Infographic on Gazillionaire

When we started the Marketwatch game, I did not know much about the stock market, much less about stocks, and selling short, or even how many shares to buy at a given time. Also, I just bought stock at the price it was because I did not know about the 52 weekly high and low. The Marketwatch game created a virtual system where you invest, and buy or sell stock, and try not to go bankrupt. Originally, I would sell my stock once I saw red, as a consequence, I lost a lot of money and realized that selling and buying stock like crazy was not a very good idea. It would cost money every time you bought stock. I would buy stock for companies with only green arrows. Later on, I realized the mistake I made. We have to read charts and perceive how the company has been performing. My initial understanding about the stock market was numbers and money. Now, I comprehend that the market system is more complex. Furthermore, there are many factors that contribute to the fabricating and managing of the market system.

Investing in the stock market is not a short term investment. Investing in the stock market is a long term investment. The one week game was aggravating due to only having a week to buy and sell. With the limited time, we were more aware of the red and green, so our decisions were based on those factors. Time is a huge factor because in a week the company could be struggling one day and the next day do really well. When given a month, we were able to visualize and comprehend that the individual day does not matter. What does matter is how the company is doing as a whole over a long period of time. In Beat the Market, we were trying to make some profit. The problem was that one had manage how much we bought and how much we sold. Also, we had to determine when the time was correct to buy or sell the stock. In the other game, the Buy and Hold, I bought what stocks I wanted, and left it alone. This is was less exasperating because you were not constantly looking at how that company was doing. Do not get emotional and just do it. It is a long term investment which requires time and research. Research the type of stocks and the company you are planning on investing.

In the one month games, many people would begin to freak once they were aware that either the company was doing well or bad. In the long run, what matters is the time, People act on instinct once we realize that what we want is not happening. Everyone can lose their composure, but in truth, we really should not be worrying over it because it was only a month long term. Even if the company is losing money on that particular day, do not freak out over it. Do not worry, especially, about the gains or losses.

When we judge ourselves on how we did, don’t judge yourself based on other investors. Comparing yourself to other investors isn't the correct way to go. Compare yourself to the market as a whole, and see the progress that has happened. Judge your worth as an investor against the whole market, in other words, what you do, to how the market does.

What is money?

1)Money is a claim and effort on human labor. Individuals have to believe in money in order for it to work. When considering money, the speculation of monetary bills, debit or credit cards, coins, we think of a tangible object. The concept of money contains three crucial components in order for an individual to exercise: store of value, unit of account, and medium of exchange. Store of value is the ability of money to not lose value over time, it has a long "shelf life", unlike a banana. Unit of account signifies that it is able to be divided equally into smaller entities. One unit is the exact same as one unit, and can be broken down into smaller entities. A painting cannot be broken down into smaller units, and it can have different values, depending on the individual. Medium of exchange is when individuals desire an object and people conclude in the value.

2)the people, in society, trust in money to continuously hold onto its value over time. This allows for the buying and selling of products, which influences a rise in the economy. In Brazil, when the people started to believe in the value of the URV's the economy rose, furthermore inflation dropped. As long as we manage believing in money, moreover its value, formerly the economic system will continue to function.

3) If we cease to believe in money, we would be confronted with a mass economic dilemma. Brazil experienced this, furthermore they experienced rapidly increasing inflation. The government in turn, printed more money, which caused it to have sheer insufficient value, moreover inflation was up to 80% a month. Individuals could pay a product in six installments, nevertheless with inflation rates so high, by the last installment, the payment could be in the thousands.

4)The Federal Reserve is a private institution that is capable of creating money any time it wants, and controls the amount of money in our economy. Fed officials gather every six week to converse about the economy, and whether there should be more or less money in the economy. In order to do create more money, the Fed buys treasury bonds from banks, which then are converted into money (cash). The Feds then give that to Banks, which can handle a lot of money in one transaction. Banks then "start landing the money out." Now there is new money entering the economy, furthermore this cause banks to lower their rates.

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