Culminating Activity – Day #1

Mr. Giusti
Economics CIA 4U

YESTERDAY’S NEWS ARTICLE

The study of Economics would not be complete without the inclusion of events from the real world. Being a keen
observer of these events will help you relate theory to practice. In this activity you will be required to research
various online newspapers and select a recent article pertaining to Economics. The article must have the following
requirements:

- An article of economic significance (written sometime within the past 5 days)

- The article can be either: “micro” in nature, e.g. “Air Canada cuts prices on all domestic flights” or "macro” in
nature, e.g. “Trudeau puts a million dollars into the healthcare system”

In your own words you will provide a brief summary no more than one to 2 pages double spaced, personal
critique/reaction, and indicate how this article relates to economics (make a connection to what we covered in the whole
course). When completed hand in both your paper and a link to the article.

Categories/ Criteria Level 1 Level 2 Level 3 Level 4

(50-59%) (60-69%) (70-79%) (80-100%)
Knowledge/Understanding Summary reflects Summary reflects Summary reflects Summary reflects a
limited knowledge some knowledge considerable high degree of
The summary demonstrates a and understanding of and understanding knowledge and knowledge and
general knowledge and the article. of the article. understanding of the understanding of /5
understanding of the article. article. the article.

Thinking/Inquiry Critique of the article Critique of the article Critique of the article Critique of the
was done with limited was done with some was done with article was done
Uses critical thinking skills in thought and thought and considerable with a high degree /5
developing a critique of the reasoning. reasoning. thought and of thought and
article with proper justification reasoning. reasoning.
and reasoning.

Application Made limited Made some relevant Made considerable Made thorough and
connections between connections and relevant detailed
Connection between the article the article chosen between the article connections connections
chosen to certain concepts and to certain chosen and to between the article between the article
covered in the Economics concepts covered in certain concepts chosen and to chosen and to /5
course. the course. covered in the certain concepts certain concepts
course. covered in the covered in the
course. course.

Communication The report/reflection The report/reflection The report/reflection The report/reflection

The communication of thoughts
and ideas with the use of
proper grammar.
demonstrated a demonstrated a demonstrated a demonstrated a
limited amount of moderate amount of considerable thorough amount of
communication skills communication skills amount of communication /5
with regards to the with regards to the communication skills skills with regards to
clear expression of clear expression of with regards to the the clear expression
thoughts, ideas and thoughts, ideas and clear expression of of thoughts, ideas
use of grammar. use of grammar. thoughts, ideas and and use of
use of grammar. grammar.

OVERALL MARK /20

Culminating Activity – Day #2-4 Student: _______________

Mr. Giusti
Economics CIA 4U /40 /20

MICROECONOMICS / MACROECONOMICS
APPLICATION PROBLEMS

Complete the following questions dealing with both micro/macro issues.

1. For each scenario below, plot the original supply and demand curves and show what happens to the equilibrium price
and equilibrium quantity (increase or decrease) for each after the situation presented. Be sure to properly label things
as: D1, D2, S1, S2, E1, E2, P1, P2, Q1, Q2. Each curve will be out of 2 marks each. (6 marks)

Question A
Set up a sketch graph with supply and demand curves for Pepsi. Now assume that the price of Coke went down.
Make one shift that shows the impact of this change.

Question B
Set up a supply and demand sketch graph for hamburgers. Assume that the price of French fries, a compliment, goes
up. Make one shift on your hamburger graph to show the effect of this change. Label the old and the new equilibrium
prices as well as the old and new equilibrium quantities.

Question C
If unemployment increased in the Burlington area, what would happen in the market for higher education? Using the
supply and demand sketch graph format, make one shift of either the supply or demand curve.
2. Goods for which the quantity purchased varies little with increases in price are said to have ELASTIC /
INELASTIC (circle one) demand. (1 mark)

3. Goods for which the quantity purchased varies a lot when price changes are said to have ELASTIC / INELASTIC
(circle one) demand. (1 mark)

4. If suppliers can easily change the quantity supplied when price changes, we say that the supply is ELASTIC /
INELASTIC (circle one). If it is difficult to increase or decrease quantity supplied, we say that supply is ELASTIC /
INELASTIC (circle one). (2 marks)

5. In June 2016, Moore’s Grocery sold 32 jars of pickles, earning a total revenue of $62.72. In July 2016, the same
store sold 32 jars of pickles, earning a total revenue of $76.16. Comment on the elasticity of this product. (2
marks)

6. The quantity of apples sold at a certain fruit stand increases from 20 pounds/day to 30 pounds/day when the price
is lowered from $.40 per pound to $.30 per pound. Calculate the elasticity of demand. (2 marks)

7. If the income elasticity of demand for intercity bus travel is -0.5, what will happen to revenues if incomes
decrease? (2 marks)
8. Complete the table below by showing the cumulative distribution of incomes received by each fifth of income
earners, from lowest to highest. Sketch out this curve in the space below. Be sure to draw the line of perfect
equality. (5 marks)

Income Distribution of Canadian Families 2015

Population Share of Total Income (%) Cumulative Income
Distribution (%)
Lowest 20% 4.3
Second 20% 9.9
Third 20% 16.0
Fourth 20% 24.3
Highest 20% 45.5

9. Complete the following table below and answer the questions that follow.

Weight Price in 2015 Total Spent Price in 2016 Total Spent

Pizza 21 $2.50 $2.75
Shorts 7 $12.00 $12.50
Movie Pass 3 $9.99 $10.99

a) From the table above, calculate the price index to determine the (%) increase or decrease in price. Note – do not
use weights. (2 marks)

b) Use the same information to calculate the more realistic price index by using a weighted system to determine the
actual (%) increase or decrease in price from 2015 to 2016. Note – use weights. (2 marks)
10. Examine the information in the table below. By what percentage did real GDP grow between 2006 and 2016?
(3 marks)

Year 2001 2006 2011 2016

Nominal GDP ($ millions) 335 400 550 750
GDP deflator 123 156 189 200

11. A business whose only inputs are labour and capital expands its employment level in the long run from 4 to 6
workers and its capital from 1 to 2 machines. Assuming that the daily wage of $100 and the daily upkeep
(including wear and tear) of each machine of $20 remain constant in the long run, identify the relevant returns to
scale and the change in long run average cost if daily output were to expand in the following way:

a) From 120 units to 240 units (4 marks)

12. Use Okun’s Law to calculate a) the gap between potential output and b) what the actual output could have been
in this hypothetical economy in 2016. In your answer, assume a natural unemployment rate of 6.5 percent.

In 2016, the unemployment rate was 7.6 percent and real GDP was $1679 billion. (2 marks)

13. Use the following set of information to calculate the expenditure approach to GDP. All numbers are in billions.
Net Exports - $333, Depreciation- $30, Wages and Salaries - $400, Personal Consumption - $590, Import - $46,
Government Purchases - $284, Gross Investment - $150, Statistical Discrepancy - $0. (2 marks)

14. For each of the following cases, calculate the spending multiplier and find the direction and size of the shift of the
AD curve:

a) Government purchases increased by $4.5 billion in an economy with a MPW of 0.75. (2 marks)

b) A $4 billion tax cut causes an initial $2.25 billion increase in spending on domestic items. (2 marks)
Culminating Activity – Day #5

Mr. Giusti
Economics CIA 4U

Macro - Infographic

Prepare an Infographic on major social/economic issue for example:

 Poverty
 Discrimination
 Environment
 Crime
 Education

The focus should be on Who/What/When/Where/Why for Infographic. Keep in

mind that you should not try to tackle a large issue but rather focus on a piece of a
larger issue for your infographic.

You will present your infographic and more importantly present how the issue that
you choose should be handled from economic and social perspective.

I am looking for 2 to 3 strategies to address the issue you have chosen.

You can do this individually or in groups of 2/3.

ACTIVITY: Prepare infographic and short presentation.

Culminating Activity – Day #5

Mr. Giusti
Economics CIA 4U

Infographic Rubric

Needs Specific
Advanced Proficient Developing
Category Improvement
Level 4 Level 3 Level 2
Level 1

Covers topic in-depth Includes essential Includes essential Content is minimal OR

Content with details and knowledge about the information about the there are factual errors.
examples. Subject topic. Subject topic but there might be
knowledge is knowledge appears to a factual error.
excellent. be good.

All graphics are All graphics are All graphics relate to the Graphics do not relate to
Graphics related to the topic related to the topic topic. the topic and/or aid the
and make it easier to and most make it viewer.
understand. easier to understand.

Makes excellent use Font, color, effects, Makes use of font, Use of font, color, effects
of font, color, effects, etc. are acceptable. color, effects, etc. but etc. but these often
Attractiveness etc. to enhance the these might detract from distract from the
presentation. the presentation presentation content.
content.

No misspellings or One misspelling Two misspellings and/or More than two spelling or
Mechanics grammatical errors. It and/or mechanical grammatical errors. grammar errors.
is publishable. error exists.

Overall Mark /20

Does the infographic have a main idea or thesis?

Does the data support the main idea? (If applicable)
Do the graphics enhance and support the data?
Does the layout and design have a purpose
Did you organize the graphics and text to communicate your ideas effectively?