3E Economics par. 1.4

• Economie
• Middelbare school
• vwo
• Leerjaar 3

par. 1.3 question 8
What is not a correct answer?

1. Animal suffering
2. Technological innovation
3. Pollution of the environment
4. Disruption of landscapes

Money

In the past direct barter, 

now indirect barter through money

Tangible <----------------------------> Scriptural

coins, notes                                                via bank account

Functions of money

- Exchange function

- Calculation function

- Hoarding function

exchange

calculation

hoarding

Budgetting

Saving

Consuming

Value of money

Intrinsic value <----------------------> Nominal value

Nominal value > Intrinsic value

Money is a confidence issue --------------> Fiat money

Assignment

Salary € 2.000,-                        € 3.600,-

Bread € 0,80                                  € 1,28    

Milk € 1,20                                      € 1,92   

Did your economic situation improve?

Use calculations to state your answer

Assignment

Salary € 2.000,-                        € 3.600,- ( + 80% )

Bread € 0,80                                  € 1,28 ( + 60% )   

Milk € 1,20                                      € 1,92 ( + 60% )

Yes, the income increased more in percentages than the prices

Assignment

Salaris € 2.000,-                        € 3.600,-

Brood € 0,80                                  € 1,28    

Melk € 1,20                                      € 1,92   

2000 / 2 = 1.000

3600 / 3,20 = 1.125

Value of money

Nominal value <---------------------> Internal value

                                                                                       Purchasing power         

salary + 80%                                      1125 meals instead of 1000 meals

                                           + 12,5%

Which statement is incorrect?

1. If salary increases more than prices, purchase power will increase
2. If salary decreases and prices increase, purchase power will decrease
3. If prices decrease more than the salary, purchase power will increase
4. If salary increases and prices decrease, purchase power will decrease

Value of money

Internal value <------------------------> External value

number of goods                                      amount of foreign currency 

you can purchase                                                        you can purchase

with a euro                                                                              with a euro 

in your own country                                                                                          

How many dollars would I get for
€ 1.500 in October 2012?
( graph page 26 )

1. $ 1.158,30
2. $ 1.912,50
3. $ 1.176,48
4. $ 1.942,50

€ 1.500 x 1,295 = $ 1.942,50

How many euros would I get for
$ 1.500 in October 2012?

1. € 1.158,30
2. € 1.912,50
3. € 1.176,48
4. € 1.942,50

$ 1.500 / 1,295 = € 1.158,30

I went on holiday to the USA in october 2011 with
$ 20.000,-. I returned in april 2013 with $ 1.200,-. How expensive was my holiday in euros?

20.000 / 1,330 = € 15.037,59

1.200 / 1,285 = € 933,85

15.037,59 - 933,85 = € 14.103,74

Hw.

 Next lesson: Par. 1.4 assignments 5, 8

Friday 22nd of September: Minor Test Chapter 1

Assignments from the paragraphs

Par. 1.1 : assignments 2, 3, 7, 8, 9, 11, 12, 13, 15, 16, 17, 18

Par. 1.6 : assignments 2, 3, 4, 6

Par. 1.2: assignments 1, 7, 8, 10, 11

Par. 1.3: assignments 2, 6, 10, 13, 14, 15

Hw.

Check paragraph assignments via answer books or digital environment

Par. 1.1 : assignments 2, 3, 7, 8, 9, 11, 12, 13, 15, 16, 17, 18

Par. 1.6 : assignments 2, 3, 4, 6

Par. 1.2: assignments 1, 7, 8, 10, 11

Par. 1.3: assignments 2, 6, 10, 13, 14, 15

 Friday 22nd of September: Minor Test Chapter 1 ( not par. 1.5 )

Learning objectives, Practising for the test, Terminology, Summary from page 36