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