AP Microeconomics-Fall Semester (Period 1) Assignments

Agenda for Dec. 13 - 17

Mon., 12/13
Topic: Final Exam
Agenda:
1. Test Structure, Length and # of questions from each section
2. Review Sections 1, 4, 5 & 6

Tues., 12/14
Topic: Final Exam
Agenda:
1. Exam Review: Sections 2 & 3

Wed., 12/15—Late, Late Start Day
Topic: Final Exam
Agenda:
1. Final Exam-Part III-3 Free Response Qs

Thurs., 12/16
Topic: Final Exam
Agenda:
1. Final Exam-Part 1—50 M/C Questions

Fri., 12/17
Topic: Final Exam
Agenda:
1. Final Exam-Part II—50 M/C Questions

Agenda for 12/6 – 12/10


Mon., 12/6
Topic: Foreign Trade
Agenda:
1. Comparative/Absolute Advantage review
2. Have students do first 5-6 questions from worksheet on whiteboard.
3. Lecture: Trade Barriers—arguments for and against.
4. Trade Barriers—what do they do—on white board.
5. Assignment: 17: 448-58; 18: 473-82

Tues., 12/7
Topic: Tariffs & Currency Exchange
Agenda:
1. Answered Q 11 – 14 from handout.

Wed., 12/8
Topic: Trade & Currency Exchange
Agenda:
1. Lecture: How does currency exchange work?—sample Qs
2. Did Sample Qs on currency exchange and a few on Trade
3. Handout: Final Exam Review Materials.

Thurs., 12/9
Topic: Test Review
Agenda:
1. Hand out Chap. 24 Quiz. Do in class.
2. Run over sample Currency Exchange Qs
3. Run over sample C/R questions

Fri., 12/10
Topic: Exam--Trade & Currency Exchange
Agenda:
1. Trade & Currency Exchange Exam

Agenda for 11/29 – 12/3
Mon., 11/29
Topic: Review for Test
1. Powerpoint--Show tax graphs from book on computer—study and explain in detail.
2. Show another sample on the board.
3. Taxes:
A. Tax--who pays: The Golden Rule: Whichever curve is most inelastic pays the
tax.
B. Taxes--efficiency loss--greater the elasticity, the more the deadweight loss.
4. Powerpoint: Deadweight loss—both from tax and monopoly
5. Coase Theorem—negative externalities can be fixed without government.
A. Few parties to transaction
B. Negotiation (transaction) costs are low
C. Clearly defined private property
1. Lakefront property and a hotel
2. Air rights for churches
3. Oil drilling off coast of Santa Barbara—trade oil drilling rights for platform removal and park land.
6. Answers to Sample Qs from Friday are on line.
7. Demo: Tragedy of the Commons—goldfish

Tues., 11/30
Topic: Test
Agenda:
1. Short Unit Test--Public Goods, Externalities & Taxes
2. Do sample trade question (from textbook) on the board. Show how the cross-multiply trick works.
3. Assignment: 18th--96-100; Q. 4, 5, 6 & 7—at end of chapter
17th--p. 89-94; Q. 4, 5, 6 & 7-at end of chapter

Wed., 12/1
Topic: Absolute and Comparative Advantage
Agenda:
1. Hand back/grade Public Goods Test—M/C and F/Response.
2. Video: International Trade
3. Comparative Advantage--on whiteboard--Q4 & 5--show table and graph on whiteboard.

Thurs., 12/2
1. More Sample Qs—Microstan and East Wakovia. Do in pairs then on board.
2. Video: Currency Exchange
3. Answer questions 6 & 7 from back of Chap. 5
4. Assignment: 17: 442-48
18: 467-73; Bring books to class tomorrow.

Fri. 12/3
Topic: Tariffs & Currency Exchange
Agenda:
1. Handout: Chap. 24 Handout—complete as many questions as you can. Really just Q 1-6-heehee.

Agenda for 11/15 – 11/19
Mon., 11/15
1. Unit 4 Exam—M/Choice & Constructed Response
2. Assignment: 18th Edition: pp. 78-82--The Public Sector-Gov’ts Role
pp. 336-49 Public Goods & Externalities
17th Edition: pp. 71-75-- The Public Sector-Gov’ts Role
pp. 310-21, 326 Public Goods & Externalities

Tues., 11/16
Topic: Review: Public Goods, Positive & Negative Externalities
Agenda:
1. Public Goods (Services) Definition--nonexclusive, shared consumption, free rider problem--Private sector, left to their own devices, will not produce these goods (services.)
A. Examples
1. Lighthouse
2. Nat'l Defense
3. Dam
2. Positive Externalities (Spillover Benefits)
A. Individuals who are not party to a transaction still enjoy the benefits of that exchange (w/out coughing up the bucks for it--free rider problem again.)
1. Example: education, vaccinations, public art, dams, nat'l parks, etc.
2. Because of the free rider problem, THERE IS TOO LITTLE DEMAND FOR THIS GOOD, AND THEREFORE TOO LITTLE PRODUCTION. The optimal amount of the good should be where MSB (Marginal Social Benefit or Demand) is equal to MSC (Marginal Social Cost, or Supply.)
3. Solution: government can raise demand (make vaccinations mandatory) or increase supply (subsidize vaccine production.) or a combination of both.
4. Handout Packet #1: Students should answer Activity 63 in pairs.
5. At random, students will be chosen to discuss/defend their answers to the class (answers on whiteboard).
6. Homework: Read Activity 64.

Wed., 11/17—Double late start day—very short periods
Topic: Public Goods & Externalities
Agenda:
1. Review of Unit 4 Exam.
2. Continued discussion of Activity 63 from yesterday, with emphasis on fire, police, garbage—not really public goods, but goods with extremely high social benefits—governments want to promote their production.

Thurs., 11/18
Topic: Externalities
Agenda:
1. Review of positive externalities graph on board.
2. Negative Externalities--Spillover costs. People are affected by production of a good--by pollution, for instance--who are not party to that production.
A. In essence, society is bearing costs but the company who creates the good is not. COSTS ARE TOO LOW, THEREFORE SUPPLY IS TOO GREAT, LEADING TO EXCESSIVE PRODUCTION.
1. Solution to problem: gov't can tax or regulate, raising costs for the producer and thereby lowering production.
3. Handout: Packet #2. Do Activity 65 in pairs. (Be sure to look at Visuals 5.2 & 5.3 included in package.)
4. Packet #3—Act, 67 & 69.
5. Assign: Read: Old Book: pp. 342-8.
Read: New Book: pp. 336-342;
Handout: Sample externality questions
Unit 5 study guide & m/c questions

Fri., 11/19
Topic: Externalities & Taxes
Agenda:
1. Act. 67 & 69—finish
2. Answers for sample externality questions
3. Handout: More Sample Externality Questions
4. Taxes—regressive, progressive & proportional
A. Regressive
B. Progressive
C. Proportional
REMEMBER--IT IS NOT THE TOTAL AMOUNT YOU PAY THAT MATTERS, IT IS THE PERCENTAGE. A rich person may pay more in total taxes, but a smaller percentage of his total income--this tax would be regressive.
5. Assign: Sample Questions for exam
6. Coase Theorem—negative externalities can be fixed without government.
A. Few parties to transaction
B. Negotiation (transaction) costs are low
C. Clearly defined private property
1. Lakefront property and a hotel
2. Air rights for churches
3. Oil drilling off coast of Santa Barbara—trade oil drilling rights for platform removal and park land.

AP ECON Agenda for 11/8 – 11/12

MON., 11/8
Topic: Labor Demand
Agenda:
1. Unit 3 Exam Review

TUES., 11/9
Topic: Labor Markets, Minimum Wage, Unions
Agenda:
1. Handout: Labor Markets Worksheet—do example for labor, question 1 & 2.
2. Back to labor market worksheet—another least cost and profit max question.
3. Very brief discussion of graph for imperfect competition in a labor market.
4. Assign: Handout/Discuss: Factor/Labor Markets Sample Questions Homework; Read Chap. 14—Rent, Interest and Profit

WED., 11/10
Topic: Factor Markets, Agenda:
Topic: Land, Rent & Interest
Agenda:
1. Discussion & Graph—effect of unions on markets
2. Profits, Rent & Interest rates—brief overview of book materials.
3. Run over Chap. 13 & 14 Handouts from yesterday—Q: 5-10, 16 & 18
4. Handouts: Assign: Sample C/R Questions; Sample Factor Market Quiz questions

THURS., 11/11—No School

FRI., 11/12
Topic: Test Review
Agenda:
1. Questions from sample quiz?
2. Run over oid C/R questions on board.
3. Ran over questions similar to those on test.
4. Unit 4 Study Guide is available.

Agenda for Nov. 1 - 5

MON., 11/1
Topic: Review for Test on Unit 3 Chap. 8-11
Agenda:
1. Run over Sample AP C/R Questions-Monopoly—quickly, in groups on whiteboard.
2. Run over PC graph again.
3. Review Consumer Surplus and Producer Surplus--P.C. vs. Monopoly.
4. Final Hints: 1)3 kinds of monopolies 2) PC graphs 3) Costs curves-draw them! 4) Total vs. Marginal 5) Implicit vs. Explicit costs 6) TP vs M)P 7) Diminishing Returns 8) Mono vs. PC-MC=S 9) Consumer & Producer Surplus 10) variable vs. fixed costs
5. Questions on handouts?

Tues., 11/2
Topic: Unit 3 Exam—1st half
Agenda:
1. Unit 3 Exam—35 M/C and 1 Constructed Response

Wed., 11/3
Topic: Unit 3 Exam—2nd half
Agenda:
1. Unit 3 Exam—31 M/C and 1 Constructed Response
2. Assignment: Chap. 13—Resource Markets;
3. Assignment: 18: 253-262; 17: 255-63. (Stop at Optimal Combination of Resources)
4. Chap. 13 Questions—available on line

Thurs., 11/4
Topic: Chap. 13 Resource Demand/Labor Demand
Agenda:
1. Lecture/worksheet--MRP=MFC!
2. Determinants of Resource Demand
3. Substitutes & Complements
4. Elasticity of Resource Demand
5. Handout: Chap. 13 Worksheet—long sheet—did Q 1 on whiteboard.
6. Assignment: 17th-264-7; 18th-263-6—Least Cost/Profit Max; Resource Mkts Worksheet—front side

Fri., 11/5
1. Resource Markets Worksheet—did front side in class on whiteboard
2. Least Cost: MP1/P1 MP2/P2
3. Profit Max: MRP1/P1 = MRP2/P2 = 1
4. Resource Markets Worksheet—back side (finished all but e. on last question)
5. Assign: finish last question on Resource Markets Worksheet
17th-274-6-PC, 278-80-Unions, 281-Min Wage
18th-273-5-PC, 277-9-Unions, 281-2-Min Wage

Agenda for Oct. 25 - 29
Mon., 10/25
Topic: Review of Monopoly, Regulated Monopoly & Price Discriminating Monopoly, Intro to Monopolistic Competition
Agenda:
1. Draw monopoly graphs on whiteboard
2. Other concerns about monopolies
A. X-inefficiencies
b. Rent-seeking behavior
c. Inefficiencies— P?MC-no allocative and P?(min)ATC-no productive efficiency
d. Consumer surplus shrinks
e. Monopolies always operate in elastic portion of demand curve—that is where MR=0 or where TR is either rising or at its peak. MR=0 where TR is highest.
2. Do a monopoly graph on board, then do a Price Discrimination graph—MR curve swings over and MR=D=AR=P is back in business! What do we mean by Price Discrimination?
3. Regulating a Monopoly
A. Socially Optimal MC=P
B. Fair Return ATC=P
4. Review Act. 41
9. Assignment: 18: 223-9; 17: 211-216;

Tues., 10/26
Topic: Monopolistic Competition and Oligopoly
1. Activity 43—graphs on whiteboard
2. Review Price Discrimination and do sample questions on board from Price Discrimination Quiz-charts & graphs on whiteboard.
3. Monopolistic Competition—draw lazy chopsticks graph—read it just like you would a monopoly graph!
4. Monopolistic Competition
A. Description/characteristics
B. Graph--not productively efficient no P=(min)ATC
not allocatively efficient no P=MC
C. Firms limit production--excess capacity.

WED., 10/27
1. Monopolistic Competition
A. Description/characteristics
B. Graph--not productively efficient no P=(min)ATC
not allocatively efficient no P=MC
C. Firms limit production--excess capacity.
2. Act. 44 & 45—send students to the board to draw the graphs and then answer each question.
3. Oligopoly: What you need to know
A. Description/characteristics
B. Graph--kinked demand curve
c. "Sticky" price and output
4. Assign: Activity 46 & Page 1 of Long Handout

THURS., 10/28
Topic: Monopolistic Competition and Oligopoly
Agenda:
1. Correct Activity 46.
2. Oligopoly--cartels, collusion and game theory==high vs. low price strategies
3. Intro to Game Theory—how to read a game theory chart
A. How to read a game theory chart
B. Dominant Strategy
C. Handout: Game Theory Sample M/C Questions
D. Handout: Game Theory Sample C/R Question
4. Chap. 11 worksheet—front page only
5. Overheads from book—Chap. 12--monopolistic competition in short run and long run:
A. Can't make money in long run.
B. not productively efficient no P=(min)ATC
C. not allocatively efficient no P=MC
D. Firms limit production--excess capacity.
6. Assignments: Study Guide On-Line; Sample Questions/Answers on-line; Handout: Old AP Exam Questions; Finish Chap. 11 worksheet-back side

Agenda for Oct. 18 – 22

MON., 10/18----Students stunk it up on Act. 34, so took some extra time to go over concepts.
Topic: PComp
Agenda:
1. Act. 34—look over answers and prepare to do work on whiteboard.
2. Handout: Act. 35—in pairs
3. Handout: Act. 36—in pairs on board
4. Ran over some basic items—3 steps for reading graph, allocative and productive efficiency, MR> or + to MC, read a Firm and Market graph, show LR increasing, decreasing and constant cost industries.
5. Random Sample Questions
6. Assignment: Study for Quiz on Perfect Comp. tomorrow; download Unit 3-Perfect Comp Study Guide.

TUES., 10/19
Topic: PComp
Agenda:
1. Act. 34—look over answers and prepare to do work on whiteboard.
2. Handout: Act. 35—in pairs
3. Handout: Act. 36—in pairs on board
4. Ran over some basic items—3 steps for reading graph, allocative and productive efficiency, MR> or + to MC, read a Firm and Market graph, show LR increasing, decreasing and constant cost industries.
5. Random Sample Questions
6. Assignment: Study for Quiz on Perfect Comp. tomorrow; download Unit 3-Perfect Comp Study Guide.

WED., 10/20
Topic: Perfect Comp
Agenda:
1. Quiz on Chap. 9.

THURS., 10/21
Topic: Monopoly-Chap. 10
Agenda:
1. Reviewed quiz.
2. Powerpoint—Monopolies
3. Assign: 18: 202-14; 17: p. 190-202

FRI. 10/22
Topic: Monopolies, Regulated Monopolies and Price Discriminating Monopolies
Agenda:
1. Completed Powerpoint-Monopolies from Wed.
2. Quickly run over Activity 38.
3. Quickly run over Activity 39
4. Assignment 18: 214-219; 17: p. 202-207; Do Act. 41

Study Guide for Chap. 9 Quiz on Tuesday.

Agenda for Oct. 11 - 15
MON., 10/11—No Class

TUES., 10/12
TOPIC: Chap. 9--Perfect Competition
Agenda:
1. Unit 2 Exam Review
2. Chap. 8 Problem Set Review—Q #6.
3. Chap. 8 M/C handout—questions and concerns on board—what is the difference between a short run and a long run change in production? Which curves are affected?
4. Activity 32—p. 115-119 do in class
5. Assignment: Finish p. 115-119 of Activity 32.

WED., 10/13—Late, Late Start Day
TOPIC: Chap. 9--Perfect Competition-short run
Agenda:
1. Lecture & Powerpoint: Perfect Competition--All Slides
2. Review first part of Activity 32
3. Assignment: Finish Activity 32

THURS., 10/14
Topic: Perfect Competition--short run & long run.
Agenda:
1. Overhead: Activity 32—answer questions by drawing on graph on whiteboard.
2. Short run vs. Long Run
3. Short Run
a. MR(also P)=MC--profit maximizing
b. P>=ATC—economic profif
c. Pd. If suffering a loss, then
e. P>=AVC--stay open
f. P4. On the Board—what happens to market in the long run? Supply will shift right (if profits), price will fall, MR. DARP will fall, and profits will disappear. Supply will shift left (if losses), price will rise, MR. DARP will rise and losses will disappear. YOU CAN NEITHER LOSE NOR MAKE ECONOMIC PROFITS OR LOSSES IN THE LONG RUN.
5. Assignment: Complete Activity 34.

FRI., 10/15
Topic: Perfect Competition--short run & long run.
Agenda:
1. Long Run
a. Assumptions
1. Entry & exit are easy.
2. Identical cost curves for all firms.
3. Constant cost industry.
b. Lose $--company will leave.
c. Make $--companies will enter.
d. 0 profits in the LR
e. P=MR=MC=(min)ATC
2. Act. 34—show completed graph on board and answer questions
3. Act. 35—in pairs
3. Handout: Act. 36—in pairs on board
4. Ran over some basic items—3 steps for reading graph, allocative and productive efficiency, MR> or + to MC, read a Firm and Market graph, show LR increasing, decreasing and constant cost industries.
5. Random Sample Questions
6. Assignment: Study for Quiz on Perfect Comp. tomorrow; download Unit 3-Perfect Comp Study Guide.

Agenda for Oct. 4 – Oct. 8
Mon., 10/4
Topic: Unit Exam Review
Agenda:
1. Chap. 21 sample questions—(Answers will be on website tonight.)
2. Do sample AP Questions 96 #2 and 98 #1.
3. Reminders:
--Substitute, complement
--normal, inferior
--elasticity formulas
--show curve—high elasticity in high price, low in low price
-->1 elastic, <1 inelastic
--TR test
--All the stuff from yesterday—
--Price Floors & Ceilings
4. Assign: Study for Exam

TUES., 10/5
Topic: Unit Exam
Agenda:
1. Unit 2
2. Assignment: 17: p. 145-55 (Stop at Long Run Production Costs); 18: 155-65 answer Qs 2, 3 & 4 at end of chapter.

WED., 10/6
TOPIC: Chap. 8: Costs of Production
1. 4 Chapter Objectives on board—from notes
2. Economic Costs include:
a. Explicit Costs—students examples
b. Implicit Costs—we’re talking “opportunity costs” again--student examples
c. What are the explicit and implicit costs of going to eat dinner in a restaurant.
3. Normal Profits—a cost—yes! Why?
4. Handout: Q# 2-4 from Chap. 8
5. Economic Profit—Q#2 on board—include discussion of fixed vs. variable using Gomez Pottery.
6. Economies & Diseconomies of Scale
7. Assign: Activity 31—Q#1; 17: p. 155-62; 18: p. 166-72

THURS., 10/7
TOPIC: Chap. 8. Short Run Production Costs
Agenda:
1. EC Question from Exam
2. Activity 31–MP, TP, Diminishing Returns, MC
3. Assignment: 17th: p. 166-68; 18th: 18th: p. 177-79 (stop at Short Run)

FRI., 10/8
TOPIC: Chap. 8-Production Costs
Agenda:
1. Activity 31—complete
2. Handout: Chap. 8 Problem Set
A. Skip Q#1
B. Q#2—Explain and graph relationship between productivity and costs
C. Run over Q 5, 7 & 8
D. Students can do Q#6 for Tues.
3. Chap. 8 Quiz handout—For Tuesday
5. Unit 2 Exam Review—will complete on Tues.
6. Assignment: Read Chap. 9—Graphs are huge!!!!

Agenda for Sept. 27 – Oct. 1
Mon., 9/27
TOPIC: UNIT 2 – Chap. 6--Elasticity of Supply, Income & Cross Elasticity.
1. Did formulas for Supply, Income and Cross Elasticity--Q is always on top!!!!!!!!!!!!!!!!!!!!
2. Did Activity 23—quickly
3. Did sample questions from Activity 24.
4. Chap. 6 worksheet—begin in class
5. Run over Consumer & Producer Surplus
6. Assign: 17th-118-22; 18th-126-130; Chap. 6 worksheet;

Tues., 9/28
TOPIC: Elasticity, Price Floors & Ceilings Review; Consumer & Producer Surplus
Agenda:
1. Run over Activity 24
2. Chap. 6 worksheet—work in pairs
3. Review Price Floors & Ceilings
4. Run over Chap. 6 worksheet
5. Hand back Chap. 3 Quiz—come to me with questions.
5. Assignment: Study for Chap. 6 quiz;

Wed. 9/29
TOPIC: Chap.6 Quiz
Agenda:
1. Questions?
2. Chap. 6 quiz.
3. Intro to Utility Maximization (if time)
TU vs. MU—MU is difference in TU or extra satisfaction derived from something.
4. Utility Max Rule—MU/P1 = MU/P2
5. Consumer Behavior Review.--Chap. 7
Income Effect--$ up I have less $ to spend on that good.
Substitution Effect--$ up, I will spend on something else.
Diminishing MU—candy bar example reminder, also, if MU goes down, the only way someone will buy more is if the $ is lower..
3. Assignment: Read all of Chap. 7.

Thurs. 9/30—Minimum Day
Topic: Utility Maximization--Chap. 7
Agenda:
1. TU vs. MU—MU is difference in TU or extra satisfaction derived from something. Key Q#2
2. Utility Max Rule—MU/P1 = MU/P2 Q#3, 4 & 5.
3. Consumer Behavior.--Chap. 7
Income Effect--$ up I have less $ to spend on that good.
Substitution Effect--$ up, I will spend on something else.
Diminishing MU—candy bar example reminder, also, if MU goes down, the only way someone will buy more is if the $ is lower..
4. Finish Utility Max rule—sample Qs 1 & 3.
5. Do sections of Chap. 7 problem set—pick a couple of important ones-don’t do whole thing.
6. Assignment: Complete Chap. 7 Problem Set and Chap. 7 M/C Qs;

Fri. 10/1
Topic: Chap. 7 Review
Agenda:
1. Handout: Answers to questions on problem set and M/C questions.
2. Chap. 7 Problem Set-questions?
3. Chap. 7 m/c Qs-questions?
4. Hand back Chap. 3 quiz, Chap. 6 quiz.
5. (If time) Chap. 7 Sample Quiz

Agenda for Sept. 20-24
Mon., 9/20
TOPIC: Market Equilibrium
Agenda:
1. On whiteboard—make students answer Chap. 3--End of Chap. Qs 3, 6, 8, 9
2. Discussion/Examination of price floors/ceilings
3. Q#14 (if time)
4. Assignment: Activity 25, 19 & 20
5. Handout: Unit 2 Study Guide and M/C questions.

Tues., 9/21
Topic: Market Equilibrium
Agenda:
1. Act. 25 together
2. Act. 19 on board.
3. Activity 20 on the board.

Wed., 9/22
TOPIC: MU Demo & Economics Baseball
Agenda:
1. Marginal Utility Demonstration
2. Economics Baseball

Thurs., 9/23
Topic:
1. Quiz on Chap. 3
2. Elasticity of Demand
A. Definition of elasticity—use tennis ball & baseball or other non-bouncing object.
B. What effects elasticity—Handout: Activity 1 & 21
3. Assignment: 17th-106-18; 18th-114-26; Activity 21

Fri., 9/24
TOPIC: UNIT 2 – CHAPTER 6-Elasticity of Demand
Agenda:
1. Chap. 3 Quiz Review
2. Elasticity of Demand
A. Definition of elasticity—sensitivity to price or how much does consumption increase or decrease when price changes?
3. Powerpoint on Elasticity—just first 8 slides.
4. S.P.L.T—Demand Elasticity
Substitutes—More-Elastic; Less-inelastic
Percentage of Y—More-Elastic; Less-inelastic
Luxury-Elastic; Necessity—inelatic
Time—More-elastic; less-inelastic
5. Activity 21
6. Total Revenue Test using paper clip and rubber band.
7. On Board: draw demand curves and analyze elasticity at different points
8. Activity 22--finished
9. Activity 23
10. Assignment: Unfinished parts of Act. 23.

Study for Chap. 2 Quiz on Mon.

1) Read Chap. 2 pp. 29-41 (Characteristics of the Market System and 5 Fundamental Questions are most important) 2) P. 42, Answer Q 8 & 9. for Friday.

Study for Chap. 1 Quiz on Wed.

Return signed classroom expectations.

Bring in signed Class Expectations on Tuesday.

Read pages 10-18 of text (both editions.)

1) Read Chap. 1, pp. 3-10 (Stop at Quick Review 1.2 on p. 10);
2) Answer textbook Qs 3, 5 & 7 at end of chapter (both editions)