Understanding Rental Agreements

Today we will be looking over a sample apartment rental agreement and answering some questions about where to find specific pieces of information.  Questions include:

Click to Enlarge

1. Is the gas and electricity included in the rent?  Explain.
2. When is the rent due?
3. What is the amount of rent you will have to pay?
4. What happens if you make nail holes in the walls while hanging pictures or paint the  woodwork white? Explain.
5. What can happen if you allow your friend to repair his motorcycle in your garage or parking space?
6. Who pays the water bill?
7. Who is going to clear the sidewalks and driveways during the winter?
8. Will your security deposit always be returned in full?  Explain.
9. Can you keep a dog in the apartment?
10. If you have to leave town because of a job change, can you sublet the apartment?  Is it possible under any circumstances?
11. If there is a hail storm and the roof is damaged, who is responsible for fixing it so it doesn't leak?
12. Can your sister come into the apartment and stay indefinitely?
13. Can you run a mail order business from your apartment?
14. When can the landlord raise the rent?
15. Under what circumstances can the rental agreement be ended by the landlord?

IF YOU DON'T UNDERSTAND ANY TERMS OF A RENTAL AGREEMENT, TAKE IT TO SOMEONE WHO WILL EXPLAIN IT TO YOU.  DON'T SIGN ANYTHING YOU DON'T UNDERSTAND!

We will also look over a standard "Move-In/Move-Out Itemized Statement" from the California Apartment Association.  It's the standard form that landlords go over in the move-in "walk-through" for new tenants -- and it's where prospective tenants should write down every flaw they see (dirty items, scratched floors, dented walls, nail holes, cracked glass, etc.).  The same form will be used when the tenant moves out.

(Here is a similar online example of this form.)

8.3: Corporations, Mergers, and Multinationals

8.3: Corporations, Mergers, and Multinationals

Assignments:

• Graph Skills (p.203): #1 & 2
• Horizontal Merger and Vertical Merger (p.206): #1 & 2
• Section 3 Assessment (p.207): #2, 3a, 3b, 4, 5a, 5b, 6, 7a, 7b, 8, 9a, 9b, 10a, 10b, 10c

Think about how corporations are different from sole proprietorship, partnership and franchise.

Choose to Merge:
Imagine that you are the chief executive officer of a major media group. The corporation’s holdings include two major city newspapers and six community newspapers in different cities. The firm has been prospering for many years, but for the last two years, both profits and circulation have declined. Market analysis suggests that part of the reason is reduced advertising revenue caused by competition from the Internet. At its last meeting, the board of directors addressed the issue and has directed you to investigate a possible merger that would strengthen the firm’s position in the marketplace. After some research, your staff has identified the three companies listed below as possible merger candidates.

Read the descriptions of each company and decide which would be the best partner to strengthen
your firm. On a separate piece of paper, write a recommendation to the board. As part of your
proposal, include a response to these questions:

1. Which merger partner would you recommend?
2. What kind of merger would it represent—vertical or horizontal?
3. How would the merger benefit your company?
4. Why would you not recommend the other companies for merger?

Company 1: AAA Printing:  This firm has a successful record printing newspapers, magazines, and textbooks, among other things. It currently prints the newspapers for your firm’s daily and community newspapers. It has been in business for thirty years and has always shown a profit.

Company 2: Golden Broadcasting:  This broadcast company owns four local television broadcast stations and six radio stations in cities in your area. The company has been growing in recent years and two of their radio stations were purchased in the last six months.

Company 3: Cramer News Group:  This firm owns a major city newspaper and three community newspapers in a different region of the country. The city newspaper has a strong reputation for insightful investigative reporting. Like your own firm, this newspaper group has always been profitable, but it too has seen a drop-off in advertising revenue.

Chapter 7.1

Discuss Chapter 7.1

• Chapter Discussion

Visual Glossary: What is Perfect Competition

• Video intro
• Interactive

Assignment:

• Page 159: Characteristics of Perfect Competition Graphic Organizer
• Page 163: Assessment # 3, 4, 6, 8

Chapter 7: Section 2

Read Chapter 7 Section 2: Monopoly

• Section 2 Assessment (p.173)
• Guiding Question #2
• Key Terms and Main Ideas (#3-7)
• Critical Thinking (#8-10)
• Math Skills (#11) 

8.1: Sole Proprietorships

Chapter 8: Lesson 1: Sole Proprietorships

Assignment:

• Complete the comparison chart at the top of page 191.
• Graph Skills (p.192): #1 & 2
• Section 1 Assessment (p.195):
• Guide Questions: #1 & 2
• Key Terms and Main Ideas: #3 - 6
• Critical Thinking: #7 - 9
• Math Skills: #10
• Define the main key terms of the chapter:
• Sole Proprietorship
• Business Organization
• Business License
• Zoning Laws
• Liability
• Fringe Benefits
• Would your virtual business [that you have been discussing so far] work as a Sole Proprietorship?  Why or why not?

• Respond to the following worksheet:

8.2: Partnerships and Franchises

8.2: Partnerships and Franchises

• Guiding Question (p.196): Create Chart
• Characteristics of Partnerships (p.197): #1 & 2
• How Can a Small Business Grow (p.199): #1 & 2
• Global Impact (p.200): What are some of the difficulties that business might encounter in their efforts to expand in other countries?
• Section 2 Assessment (p.201): #1, 2, 3, 4, 5, 6, 7, 8
• How do limited liability partnerships compare with general partnerships?
• Items often covered under articles of partnership?
• Financial advantages of partnerships?
• Money and other valuables make up a person’s or firm’s __________________.
• A semi-independent business that pays fees to a parent company in exchange for the exclusive right to sell a product or service is a(n) _____________________.
• Three kinds of businesses that are often general partnerships: 
• Thinking of your own virtual business, would it work as a partnership?  Would it work as a franchise?  Why or why not?

What product did William Procter make when he first arrived in Cincinnati?  What kind of business organization did he have?

What kind of liability did Procter have when he first started his business?

What were the immediate benefits of the partnership?

Why did Procter and Gamble end their partnership? What benefits were they looking forward to?

What is a Franchise?


How Franchising Works: An Illustrated Guide
SUBWAY Story: What is Franchising?

Supply Changes

Think about your fictitious business from your project as you read "Economics & You: Input Costs" on page 124.

• What main resources/products (cotton, gasoline, steel, fabric, etc.) does your business rely on?
  
   For example, if you sell t-shirts, the manufacturer would need cloth -- or if you are making shoes you might need leather or rubber -- or if you are a lawn care company, you might need gasoline.
• What resources do your main products require before they get to you?  For example, to create cloth a company must have cotton -- and to have cotton they would need water and fertilizer and seeds and labor.
• What changes in costs for supplies would make you [in your specific business] charge more for your product/service?  Why?
• How might technology be used to reduce costs for your business?
• If one of your main supply necessities (i.e. cotton or gasoline) was owned by one or two companies, what might happen to the price of that resource?  Why?

Answer the following questions:

• Explain what Subsidies are (p.124) in your own words.
• Read the "Ballooning Problem" article about reduced supplies and increased demand.  
• How might government regulation change how helium is used?
• How is helium becoming a shortage instead of a scarce resource?
• Suppose the United States buys most of its bananas from a particular country.  If that country suffered a drought, what would happen to the "supply curve" for bananas?
• If regulation increases price and decreases supply, why does the government issue regulations?
• Why would an auto-maker want to have manufacturing plants in several different regions?
• Why would a software company NOT necessarily want facilities in several different regions?
• Suppose television networks raise the fees that cable television networks must pay to show their programs.  What processes or prices might change?
• Suppose that you open a shoe repair shop.  What fixed and variable costs would you have?

Video about Helium Shortage: http://www.youtube.com/watch?v=hEKlHtR_quo

 

Making a Difference: Jellico Pride

Today the members of this class are forming groups [of 4] to discuss our community.  For the purpose of this project, we will consider Jellico as our community -- even if we are in smaller communities such as Elk Valley, Newcomb, Stinking Creek, Eagan, White Oak, Indian Mountain or "1804".

Get in individual groups based on the community you have chose -- there must be 4 (or fewer) people in your group.  Write "Making a Difference: Jellico Pride" at the top of a sheet of binder paper and the names of all group members participating.  Underline the name of the "recorder" (the person writing down the ideas; they will receive extra credit.

Part I: On the front of this paper write:  "Positive Things About Our Community" and then begin a list of good things.  It could be places to go, things to see, the kind of people, or whatever.

Part II: On the back of this paper, write the heading "How Can We Make Things Better?"  Next, make two columns 1, "Things One Person Can Do" and 2, "Things a Group Could Do".  Now start a list for each side for real things we can do to make positive change.

Part III: On the front of a new piece of paper, write:  "Positive Things About Jellico High School."  Think of good classes, good teachers, good staff members, foods, sports, or whatever else you think is a good thing.

Part IV: On the back of the paper, label it: "Things That Would Make JHS Better".  List things that we could change here to make our school a better place to be.  This isn't a "hit list", so if you want to call out teachers or staff, do so respectfully and use specific things they could do better.  Think of classes you would like to take, things that would make the facilities better, changes in our rules, etc.  Be proactive and think of real things that we could implement.

4.3: Elasticity of Demand

Chapter 4.3: Elasticity of Demand

• Graph Skills (p.98): #1 & 2
• Illustration (p.99): How does this cartoon illustrate elasticity of demand?
• Check Your Understanding (p.101): #1 & 2
• Checkpoint (p.102): What factors affect elasticity of demand?
• Checkpoint (p.103): How does elasticity affect revenue?
• Chart Skills (p.103): #1 & 2
• Chart Skills (p.104): #1 & 2
• Checkpoint (p.104): Why does a firm need to know whether demand for its product is elastic or inelastic?
• Section 3 Assessment (p.104): #2, 3, 4, 5, 6, 7, 8, 9, 10

4.2: Shifts in the Demand Curve

Chapter 4:2: Shifts in the Demand Curve

• Image (p.91): Based on the image, how would the demand curve for plywood change?
• Checkpoint (p.92): What does a shift in the demand curve say about a particular good?
• Graph Skills (p.92): #1 & 2
• Checkpoint (p.95): How will an anticipated rise in price affect current demand for a good?
• Checkpoint (p.96): If the demand for a good increases, what will happer to the demand for its complement?
• Section 2 Assessment: #2, 3, 4, 5, 6, 7, 8, 9

4.1: Understanding Demand

Chapter 4:1: Understanding Demand

• Guiding Question (p.85): Chart
  
• What is the Law of Demand? (p.86): How do these two images reflect the law of demand in action?
• Graph Skills (p.87): #1 & 2
• Checkpoint (p.88): What happens to demand for a good when the price increases?
• Economics in Action (p.88): Has the substitution effect been a factor in any of your recent purchases?  Explain.
• Chart Skills (p.89): #1 & 2
• Checkpoint (p.89): To have demand for a good, what two conditions must be met?
• Magazine (p.89): What other goods or services might consumers have less demand for during an economic downturn?
• Graph Skills (p.90): #1 & 2
• Checkpoint (p.90): What is a market demand curve?
• Section 1 Assessment (p.90): #1 - 11

Law of Demand (Parody of Sharp Dressed Man): http://youtu.be/tDkkkEQXJMw
Law of Demand (Investopedia): http://www.investopedia.com/video/play/law-demand/

The Law of Demand

Understanding Supply and Demand

BELL RINGER:  On a piece of paper, answer the following under "Bell Ringer" and then put them in the 3rd Block Bin:

1. Refresher: What is the difference between scarcity and shortage?
2. Think about your fictitious business and explain what product or service is supplied by you, and who demands that product or services.
3. What does the Latin phrase "ceteris paribus" mean?
4. Looking at the Supply & Demand graph (right), which of the lines is Supply and which is Demand?

Supply and Demand
As you would probably imagine, Supply and Demand are concepts that are the cornerstone of Economic Theory.  The entire concept of Economics is the study of how and why people choose to buy the things they do.  So much, in fact, that out of the 61 Tennessee Economics Standards, 6 of them specifically involve Supply and Demand.

• E.11 Define supply and demand, and provide relevant examples. (E)
• E.12 Describe the role of buyers and sellers in determining the equilibrium price. (E)
• E.13 Describe how prices of products as well as interest rate and wage rates send signals to buyers and sellers of products, loanable funds, and labor. (E)
• E.14 Explain that consumers ultimately determine what is produced in a market economy (consumer sovereignty). (C, E)
• E.17 Identify factors that cause changes in market supply and demand. (E)
• E.18 Demonstrate how changes in supply and demand influence equilibrium price and quantity in the product, resource, and financial markets. (E)

In addition to supply and demand, we will be working on the following standards:

• E.2 Explain how consumers and producers confront the condition of scarcity, by making choices that involve opportunity costs and tradeoffs. (E)
• E.4 Describe how people respond predictably to positive and negative incentives. (C, E)
• E.5 Explain that voluntary exchange occurs when all participating parties expect to gain. (E)
• E.23 Compare and contrast the following forms of business organization: sole proprietorship, partnership, and corporation. (E)

Watching the video clips, answer the following questions:  Demand and Supply Explained
Demand:

1. When the price goes _______ the quantity demanded goes _______.
2. A Demand Curve is a ________________ sloping curve.
3. What is the Substitution Effect?
4. What is the Income Effect?
5. What is the Law of Diminishing Marginal Utility?
6. The Demand Curve shifting left indicates a _______________ in quantity demanded.
7. The Demand Curve shifting right indicates a ______________ in quantity demanded.
8. What are the 5 Shifters of Demand:
1. Tastes/Preferences: ____________________________________.
2. Number of Consumers: ____________________________________.
3. Price of Related Goods: ____________________________________.
4. Income: ____________________________________.
5. Expectations: ____________________________________.
9. What are "substitutes"?
10. What are "complements"?

A clip demonstrating the Law of Diminishing Marginal Utility: Matilda: Bruce Bogtrotter
Supply:

1. When the price goes _________ for a product, the quantity producers make will __________.
2. A Supply Curve is a ________________ sloping curve.
3. The Supply Curve shifting left indicates a _______________ in quantity supplied.
4. The Supply Curve shifting right indicates a ______________ in quantity supplied.
5. What are the 5 Shifters of Supply:
1. Price of Resources: ____________________________________.
2. Number of Producers: ____________________________________.
3. Technology: ____________________________________.
4. Taxes & Subsidies: ____________________________________.
5. Expectations: ____________________________________.
6. What happens to supply for a product when the price increases?  ______________.
7. What is the Market Equilibrium ____________________________________.
8. What is a "Surplus"? ____________________________________.
9. What is a "Shortage"? ____________________________________.

Discussion & Short Answer:

Your Business:  
Using your virtual/fictitious business, describe how the following Shifters affect Demand in your business:

1. Tastes/Preferences: 
2. Number of Consumers: 
3. Price of Related Goods: 
4. Income: 
5. Expectations: 

Using your virtual business, describe how the following Shifters affect Supply in your business:

1. Price of Resources: 
2. Number of Producers: 
3. Technology: 
4. Taxes & Subsidies: 
5. Expectations: 

Download a worksheet here: WORKSHEET

Next we will have a short discussion and share some of the progress we are making on our Business Project and our Making a Difference project.

Business Project:

• What business have you come up with?
• Where would you locate your business?
• What is your target demographic?
• What design considerations (logo, colors, etc.) will you use?
• Will your business be a sole proprietorship, a partnership or a corporation?

Making a Difference:

• What is an idea you think would make your community better?
• What is an idea you think would make our school better?
• Did anything surprise you as you began thinking about how you could make a difference in your community or in your school?
• How might any these changes have an effect on the economics of your community?

Chapter 3 Assessment

Chapter 3 Assessment

• Critical Thinking (p.74): #1, 2, 3, 4
• Applying Your Math Skills (p.74): #5, 6, 7, 8
• Analyzing Documents (p.75): #1, 2, 3
• Writing About Economics (p.75): When may a government take private property for public use?
• Looking at the two farm-related graphs on page 76, how are farms changing in America?  Why do you think that is?
• Looking at the Median Weekly Earnings graph on page 78, what are some trends that you can deduce?
• Looking at the Unemployment Rates chart on page 79, how were African Americans (men and women) faring in the workplace in 2007?  How might this have affected the 2008 election?
• Looking at the Selected Personal Consumption Expenditures chart on page 81, where do Americans spend the majority of their money?  If Americans are trying to save money, which areas will they have to cut back on?  Explain.
• Unit 1 Challenge (p.82): Writing Activity

3.4: Providing a Safety Net

Chapter 3 Section 4: Providing a Safety Net

• Checkpoint (p.69): What is the goal of the government welfare programs?
• Economics & You (p.69): Identify another way that the government may use your money to help somebody else.
• Checkpoint (p.71): Identify four programs that provide cash benefits to the poor.
• Checkpoint (p.72): How does the tax law provide an incentive to help the needy?
• Section 4 Assessment (p.72): # 3, 4, 5, 6, 8, 9, 10
• Roles of the Government (p.73): What are the roles of government?

Chapter 3: Section 2 and 3

Chapter 3 Section 2: Promoting Growth and Stability

• Guiding Questions (p.56): Chart
• Graph Skills (p.57): #1 & 2
• Checkpoint (p.57): Why do government experts track the business cycle?
• Checkpoint (p.58): What three goals does the government try to meet when promoting economic strength?
• Explain "obsolescence" using a real world example [other than telephones].  
• Business by the Bootstraps (p.60): Applying Economic Principles
• Checkpoint (p.61): How does improved technology help the economy?
• Section 2 Assessment (p.61): #1, 4, 5, 6, 7, 9, 10, 11

Chapter 3 Section 3: Providing Public Goods

Assignment:

• How are Public Goods Created? (pp.64-65): #1 & 2
• Checkpoint (p.64): What two criteria must be present for a public good?
• Checkpoint (p.65): Why are public goods examples of market failure?
• Graph Skills (p.66): #1 & 2
• Checkpoint (p.67): What does the government do in response to negative externalities?
• Poster Analysis (p.67): How does this poster deal with a negative externality of being a consumer?
• Section 3 Assessment (p.67): #2, 3, 4, 5, 6, 8, 9