AP Review

In class students worked on previous AP exam problems.  Notes on the economic models you will need to be familiar with are linked below.
 
Notes - Microeconomic Models

Good Luck on the Exam.

Quiz - AP Review

In class I returned the Part II Exam that students completed on Thursday.  Remember when asked to Explain something on Part II of the exam, write a one to two sentence explanation. 

Afterwards, students took a review quiz on some of the topics we have been reviewing in class.  If you have not taken the quiz please do so ASAP-as it is a means of review.

For homework, complete the MC review and the 2 part II questions below.  We will again sum up the course on Wednesday. 


24 Multiple Choice Questions

2 Free Response Questions

Quiz Review/AP Review

In class we went over the quiz review sheet that was given out on Tuesday.  There will be a final quiz on four of the models (so know them all) on Monday that will be administered during class. If you are not here on Monday, you will have to find time to take the quiz before Friday of next week.

The answer key to the quiz review is linked below.

Quiz Review - Answer Key

Afterwards, students completed the 2009 Part II of the AP Exam.  If you were absent please complete and turn in for a grade ASAP.  I have linked the document below.

2009 Part II

For homework, study for the quiz and complete the 24 multiple choice questions that were given out in class and linked below.

HW - 24 Multiple Choice Questions for AP Micro Review

Review for AP Exam

In class we continued to work on review for the AP Exam.  Students have, or more appropriately should have, completed 2 Part I's and 2 Part II's of past exams.  Hopefully, we can complete one more test before the AP exam.

For homework, complete the Practice quiz which I have linked below.  We will have our final quiz on Tuesday, May 12th.

HW - Practice Quiz - Macroeconomics

Subsidies and Taxes/Final Review

In class we went over Marginal Social Cost, where a tax should be used to achieve ultimate price and quantity.  Afterwards, we went over Marginal Social Benefit, where a subsidy should be used to achieve optimal price and quantity. 

The notes and homework are attached below.

Notes - Subsidies (MSB) and Taxes (MSC)

HW - 1995 AP Microeconomics Exam

1995 AP Microeconomics

Part I Review (cont.)

In class we went over the answers for the 2012 part II questions.  Afterwards, students continued working on the multiple choice questions for 2014 part I.  For homework finish the multiple choice questions which we will go over at the beginning of the class Friday.

Externalities

In class students went over externalities and discussed the marginal benefits and marginal costs of pollution.  Students should know how the effects a) environmental standards, b) emissions tax and c) cap and trade have on pollution.

The notes are attached as is the homework.

Notes - Externalities

2012 Part II

Summary of Factor Markets

In class we went over a the 2013 part II questions.  Afterwards, we summarized our discussion on factor markets.  Students were then given a take-home quiz which will be due Monday, April 27th.

The notes are attached and the homework is listed below.


Notes - Factor Markets

HW - Take Home Quiz - Factor Markets
          Read Modules 74 and Modules 75

Part II Review

In class students started reviewing for the AP exam by completing the 2014 Part II questions.  We will sum up factor markets on Thursday.

2014 Part II

2014 Part II - Answer Key



HW - 2013 Part II
         ***You may not know how to complete all the problems but do the best you can.***

Factor Markets Cont.

In class students continued learning about factor markets (markets for land, labor and capital).  Students were introduced to the individual firm and also the market supply and demand curve.  Firms always hire labor until VMPL = MFC (or wage if it is perfectly competitive). 

We also looked at the difference between a perfectly competitive industry for labor and a factor market where competition is not perfectly competitive (imperfect competition).  We looked at a monopsony, which is a firm that is the only buyer(demand) for labor.  In this type of market, wage is below equilibrium as MFC>S. 

Students should also be able to differentiate between the income effect and the substitution effect when it comes to the an individual's supply of labor.

The notes are attached as is the homework.

Notes - Factor Markets Cont.

HW - Factor Markets Assignment
          Read Modules 72 and 73

Introduction to Factor Markets

In class students took a quiz on oligopolies and monopolistic competition.  Afterwards, we moved from product markets (ex. monopoly, oligopoly, monopolistic competition and perfect competition) to factor (inputs)  markets (CELL - Capital, Land and Labor).

Students reviewed the production function and calculated the marginal product of labor.  The final model we looked at was the value of the marginal product of labor which is a firms demand curve for labor - which is derived from the product market.  A firm will hire workers up to a point where VMPL = W  (W = Wage).

The notes are attached and the homework is listed below.

Notes - Introduction to Factor Markets

HW - Read Modules 71-73

Review - Imperfect Competition

In class students reviewed the two following product markets: Oligopolies and Monopolistic Competition. 

The notes are attached below as is the homework.

Notes - Section 12 Review - Oligopoly and Perfect Competition

HW - Practice Quiz - Imperfect Competition
          Read Modules 69-70

Monopolistic Competition

In class student learned about a monopolistically competitive market.  The market has many firms (none with large market share), differentiated products and free entry and exit.  We also took a look at the model for a monopolistically competitive firm. 

The notes are attached below as is the classwork.  There is no homework.

Notes - Monopolistic Competition

CW - Monopolistic Competition

Oligopoly in Practice

In class we finished our discussion on oligopolies.  Afterwards, students worked on a classwork assignment related to the market structure.

The notes and homework assignment are attached.

Notes - Oligopoly in Practice

HW/CW - Oligopoly
                - Read Modules 67 and 68

Quiz/Game Theory

In class students took a quiz on perfect competition and monopoly.  Afterwards, stednts were introduced to game theory (ex. prisoner's dilemma) and a classic example of game theory in the market for oligopoly is whether or not to spend money on advertising.

The notes are attached and the homework is listed below.

Notes - Game Theory

HW - Read Module 66

Quiz Review/Oligopoly

In class we reviewed the market for perfect competition and monopoly.  The quiz will be on Thursday.  It would be in your best interest to read the chapter summary and look through the multiple choice/extended response questions in Section 11 as a means of review.

Afterwards, students were introduced to an oligopoly, which is a market with few firms, products many be standardized or differentiated and there are barrier to entry.  Towards, the end of class we briefly got into Game Theory and will look at it more next class. 

The notes are attached and the homework is listed below.



HW - Read Modules 65/66
          Study for Quiz
          *Any make-up work due by Friday 3/27

Price Discrimination/Section 11 Review

In class students learned about price discrimination which is charging different customers different prices for the same good or service.  We see price discrimination in the airline industry with business travelers versus vacation travelers.

Afterwards, we reviewed the two markets we focused upon during the section: a perfectly competitive market and monopoly.

The notes are attached and the homework is attached/listed below.

Notes - Price Discrimination

Notes - Section 11 Review

HW - Section 11 Practice Quiz
          Read Modules 64 and 65 (Oligopoly)
          Complete Monopoly Packet

Monopoly

In class students were introduced to the market for a monopoly and saw how the market is inefficient as there is deadweight loss. 

The notes and homework are attached.

Notes - Monopoly

HW -  Monopoly Packet
        - Read Module 63 and Chapter Summary
        *Make-up work ASAP

Perfect Competition - from the SR to the LR

In class students completed a quiz on section 11.  Afterwards, we looked at three curves...the short-run individual supply curve, the market supply curve and the long-run market supply curve.

The notes and homework are attached below.

Notes - Perfect Competition SR->LR

HW - Packet - Perfect Competition
          Read Modules 61 and 62

Introduction to Perfect Competition

In class we reviewed the various topics from section 10 "Behind the Supply curve," as a means of reviewing for the quiz on Friday.  The review notes are attached:

Notes - Section 10 Review

Afterwards, we went over the review quiz which was for homework and I have attached the answer key.

Answer Key - Review Quiz - Section 10

Finally, we covered modules 58 and 59 in class on perfectly competitive markets and saw how the cost curve (specifically a firms marginal cost curve) becomes the firms supply curve.

The notes are attached and the homework is listed below.

Notes - Introduction to Perfect Competition

HW - Study for Quiz on Section 10
          Read Module 60

Market Types

In class, we went over the take home quiz which focused on elasticity's.   Afterwards, we went over the handout on production costs.  Students should be familiar with the shapes of the following curves: MC, AFC, AVC and ATC.  Finally, students were introduced to the four types of markets (perfect competition, monopoly, oligopoly and monopolistic competition) that we will be discussing in depth in the near future.

Answer Key - Handout - Production Costs

Notes - Types of Markets

HW - Review Quiz - Behind the Supply Curve
         Read Modules 58-60 (Perfect Competition)
       
*Quiz Friday - Section 10

Firm Costs/Long Run Costs and Economies of Scale

In class, students learned about fixed costs, variable costs and marginal cost.  Students also used data to figure out Average Fixed Costs (spreading effect), Average Variable Costs (diminishing returns effect) and Average Total Costs (U-shaped for most industries). 

Afterwards, students took a look at various short-run average total cost curves to make decisions about the long-run. 

The notes and homework are attached.


Notes - Average Cost Curves and Economies of Scale


HW - Complete HW Packet
         Read Modules 56 and Modules 57

Profit, Profit Maximazation and The Production Function

In class we went over Module 52, 53 and 54.  Students learned about the difference between accounting profit and economic profits (implicit costs).  Students also learned how  a firm maximizes profit (when marginal revenue = marginal costs).  Lastly, students were introduced to the production function and learned about fixed vs. variable input costs.

The homework is listed below and the notes are attached.

Notes - Profit, Profit Maximization and The Production Function

HW - Read Module 55 and 56

Utility Maximization

In class students were introduced to the Consumption Possibilities Curve (Budget Line) and talked about utility maximization.  Utility is maximized when the marginal utility per dollar of each good are equal.

The notes are attached below as is the homework.

Notes - Utility Maximization

HW - Quiz - Behind the Demand Curve
          Read modules 52 and 53


***Answer Key - Surplus and Tax Incidence

Surplus and Tax Incidence

In class student learned how to calculate consumer (willingness to pay - price) and producer surplus (price - cost).  Afterwards, students learned about how taxes are levied and how the tax incidence affects consumer and producer surplus.

The notes and homework are attached.


Notes - Surplus and Tax Incidence

HW - Packet - Surplus and Tax Incidence
          Read Module 51



***Answer Key - Elasticity Packet***

Elasticities cont.

In class we went over the quiz.  If students would like to retake the quiz; do so as soon as possible.
Afterwards, students worked on an activity involving elasticities.   I attached the document below and we will go over it next class.

The homework is listed below and the notes are attached.

Notes - Determinants of Elasticites

CW - Elasticity

HW - Finish Classwork
          Read Module 50 (Consumer/Producer Surplus)

Other Elasticities

In class students learned about other elasticities:

1.  Cross Price Elasticity of Demand - determines if goods are compliments/substitutes.
2.  Income Elasticity of Demand - determines if goods are normal/inferior.
3.  Price Elasticity of Supply - availability of resources to expand productions.

The homework is listed below and the notes are attached.

Notes - Other Elasticities

HW - Read Module 49 and 50

Price Elasticity of Demand

In class students learned how to calculate the Price Elasticity of Demand.  Students also learned the difference between elastic (PED > 1) and inelastic (PED < 1) goods. 

The homework is listed below and the notes are attached.

Notes - Price Elasticity of Demand

HW - Study for Quiz #1 - Section 1 and 2
          Read Module 48

Price and Quantity Controls

In class students learned that the government sometimes steps in and uses price or quantity controls to appease one portion of the population.  There are two types of price controls: (1) Price Ceilings (ex. rent controls) and (2) Price Floors (ex. minimum wage).  However, problems do arise from implementing these policies.  There is one type of quantity control, or quota, that is used creating a deadweight loss for both producers and consumers.

The homework is listed below and the classwork is attached as are the class notes. 

CW - Practice Quiz

Notes - Price and Quantity Controls

HW - Finish Quiz Review
          Read Modules 46, 47, 48

Supply and Demand Curve

In class students were introduced to the Supply and Demand Curve.  Any movements along either curve are due to changes in price.  While, shifts in the Demand curve are due to SEPTIC and shifts in the supply curve are due to changes in TIES.

The homework is listed below and the notes are attached.

Notes - Supply and Demand Curve

CW - Section 2 - Supply and Demand

HW - Read Modules 8 and 9

Gains from Trade

In class students reviewed the production possibilities curve (frontier).  Afterwards we looked at the benefits of specialization and trade.  Students learned about absolute and comparative advantages and made trade decisions based on opportunity costs.

The homework is listed below and the notes and handout are attached.

Notes - Gains from Trade

CW - Fundamentals of Economic Analysis

HW - Read Modules 5, 6, 7 in Textbook

Intro to Microeconomics and the Productions Possibilities Curve

In class students were introduced to the study of economics and specifically microeconomics-which is the study of how individuals, households and firms make decisions.

Afterwards, students were introduced to the first economic model of the course-the production possibilities curve or frontier. 

The homework is listed below and the notes are attached.

Notes - Intro to Micro and the PPC

HW - Read Modules 1, 3, and 4


I have also attached the Syllabus and the AP Contract below.  Please return the two forms ASAP!
Syllabus

AP Contract

Putting it all together - Final Class!!!

In class students took their final quiz on Modules 6 and 7.  Afterwards, we looked at a part two question that incorporates a number of models to answer a number of questions about the economy.

The AP is May 14.  I will be sending out emails in late April that list the dates for review and what materials/resources that should be purchased by that date.

I enjoyed working with all of you and hope you learned a thing or two.

Exhange Rate Regimes

In class students reviewed the Foreign Exchange Market which determines the exchange rate.  Afterwards, students were introduced to the two type of foreign exchange regimes:  (1) Floating Exchange Rate and (2) Fixed Exchange Rate.  During class we discussed how and why a country would want to fix its exchange rate against another currency versus why a country would choose a floating exchange rate regime.

The notes are attached and the homework is listed below.

Notes - Exchange Rate Regimes

HW - Section 6 and 7
         Read Module 45
         *Quiz on Section 6/7 next class
         **Make-up work by Thursday 1/15

Foreign Exchange Market

In class we talked about capital flows and how real interest rates affect the international flow of money (side by side loanable funds models). 

Afterwards, we talked about how currencies are priced in the foreign exchange market. A currency appreciates when the value of a currency is worth more relative to another currency.  A currency depreciates when the value of a currency is worth less relative to another currency.

*When a countries currency appreciates, exports fall and imports increase (foreign goods cheaper)*

*When a countries currency depreciates, exports increase and imports fall (foreign goods expensive)*

Lastly, we discussed the real exchange rate which uses the exchange rate and takes into the price index (CPI, GDP deflator)

The notes are attached below and the homework is listed.

Notes - Capital Flows

HW - Read Modules 43 and 44
          Complete Section 5 Review (attached to last post)
     

**Make up any quizzes ASAP**