Advanced Placement Microeconomics Instructor, Mrs. Peggy Pride Study Notes to accompany Economics Principles, Problems and Policies, 15th Ed. Campbell McConnell Stanley Brue AP MICROECONOMICS SEMESTER PLAN Instructor, Mrs. Peggy Pride TEXT: Economics, Principles, Problems and Policies, 15th Edition, McConnell and Brue Video: Econ U$A series with discussion Class Activities: APIP workbook activities, reinforcement and writing activities and other teacher-developed materials This semester-long course gives students a thorough understanding of the principles of economics that apply to the function of individual decision-makers, both consumers and producers, within larger economic systems. It places primary emphasis on the nature and …show more content…
√ Principles are expressed as the tendencies of typical or average consumers, workers, or business firms √ Generalizations • “Other things equal” assumption—controlling all variables except one • Abstractions—do not mirror the complexity of real world • Graphic Expressions—models used to show theory Policy Economics √ Applied Economics that recognizes the principles and data which can be used to formulate policies. √ Determining a course of action to resolve a problem or to further a nation’s economic goals 1 Steps in Policy Economics State the goal Determine the policy options A clear, specific statement List specific policies to achieve goal with an assessment of possible effects Implement and Evaluate the policy which was selected Monitor steps in implementing the policy initiatives taken Principles Are Derived At Two Levels: Macroeconomics: economy as a whole and its basic subdivisions such as government, business and households. Macro looks at totals or aggregates to examine the “big picture”. Microeconomics: looks at specific units or segments of the economy, a particular firm or household. Micro looks at the “trees not the forest”. ECONOMIC GOALS • POSITIVE economics collects and presents facts. It avoids value judgments—”just the facts, madam”! Positive economics concerns WHAT IS—what the economy is really like. •
Ten Principles of Economics Thinking Like an Economist Interdependence and the Gains from Trade The study of economics is guided by a few big ideas. Economists view the world as both scientists and policymakers. The theory of comparative advantage explains how people benefit from economic interdependence.
The economy of Brazil is in the top ten largest economies along with the United States. It is the biggest in Latin America. Actually it is the seventh largest in the world. Brazil has used its newly found economic mechanism to syndicate its outcome in South America and show more of a role in the Global Businesses. The Obama Administration’s National Security Strategy recognizes Brazil as a developing center of effect, and greets the management of the country’s joint and global issues. The United States and Brazil associations mostly have been good in the recent years. But Brazil has other strengthening relations with neighboring countries and expanding ties with nontraditional partners in the South that’s developing.
-The two basic assumptions that economists make about individuals and firms are that individuals act to make themselves as well off as possible, and that firms attempt to maximize profits.
Refer to the above table. Suppose the government commands each firm to reduce its emissions by 1 ton each and allows these two firms to trade pollution permits. If a 1-ton credit is sold for $175, the total cost for both companies combined to reduce emissions by a total of 2 tons could be as low as:
a. Given the change in the value of the dollar between 2008 and 2009, as indicated in the table above, describe the effects this will have on United States tourism in each of these countries.
Macroeconomic principles come into play when the whole market or more outside factors are involved. Examples of this in the video game industry, which I work in, would be when the rating system for games are under scrutiny, or when a new console is put on the market as competition. These outside factors affect not only the company I work for, but every other company in the industry, from the hardware manufacturers such as Microsoft and Sony, but also the game studios such as Activision, EA and Rockstar Games. Microeconomic principles are caused by and effect only my company in particular, such
In the first week of classes we learned seven economic principles that would later be reinforced with examples in the class along with providing our own examples and analysis of the concepts in our own written work and debates about real world issues and events. We first talked about how incentives matter. In agriculture, and many other business sectors, incentives are very important and come in many forms such as subsidies or tax breaks from the government. It was also very important to learn about the shortages and surpluses that could amount from such incentives. For example, if the government were to give farmers prices above equilibrium, farmers would then be able to over produce above the demand levels. This is not to say that the government can’t sometimes improve the market outcomes. If a market failure is present and the government interferes, it would result in a positive market outcome. Next we discussed the importance of trade-offs and the opportunity costs behind those trade-offs. We make our trade-offs among three pillars of values: social/cultural, environmental, and economics and only when all three are balanced are we completely sustainable. In agriculture, trade-offs and opportunity costs are faced daily, and decisions should be made according to what is most sustainable now, and in the future. If a farmer decides to drain a wetland for more crop space to produce more (economic), the opportunity cost is the ecosystem being destroyed (environmental). Another example is if a farmer decides to farm organically, the opportunity cost is the increased yields of non-organic farming practices. Next I learned that rational people think at the margin. An example of this within agriculture is that a farmer does not think that he will hire five people to run two tractors, he thinks at the margin, hires two people to do the job, and therefore profits from that decision. I learned that markets are a good way
Directions: Identify the letter of the choice that best completes the statement or answers the question. Then mark your response on the answer sheet. Unless otherwise stated, demand curves are negatively sloped and supply curves are positively sloped. The midpoint and point formulae for elasticity are, respectively:
The first part of our policy analysis framework that we made was the goals and objectives section. We took this specific concept from Chambers framework, although many of the other frameworks also use this concept. The class came to a consensus as to what the definition would mean specifically. We all chose to measure the policy’s intended impact, as well as the policy’s actual impact. We also agreed on that participation in the program helps as a stepping stone for these individuals. What we mean by this is
This course provides students with the basic theories, concepts, terminology, and uses of microeconomics. Students learn practical applications for microeconomics in their personal and professional lives through assimilation of fundamental concepts and analysis of actual economic events.
A policy cycle starts by identifying issues, and then moves through to analysis and implementation to evaluate the policy’s effects. There are three main stages in which a policy outline moves through. This is where an idea is developed, then acted on and the results are checked. (Althaus et al. 2007)
INSTRUCTIONS: you have 1 hour 30 minutes to complete the exam. Write all your answers in the space provided; any work on the back pages will be given zero credit. You can write
Historically, economics has focused on the study of the distribution, production, and allocation of scarce goods, and how firms and individuals make decisions while inevitably facing trade-offs between costs and benefits. Economics has slowly evolved as a discourse community characteristic of quantitative theories that seek to set the stage in which economic and political policies and decisions can be diffused through the nation and the world. The field of economics is a discourse community whose purposes are to quantitatively analyze economic research questions, come up with hypotheses, construct models and equations to test the hypotheses’ validity and argue about its findings. Economic scientists and professionals gather and publish their
James has made an impressive start to the Economics International Baccalaureate course and has proved to be an insightful student who has a excellent grasp of the key economics concepts and issues being studied. I have been impressed by his mature and determined approach to his studies and his awareness of the complex economic interrelationships in the world. He can build on these grades by more in-depth critical analysis and by more effective use of economic theory and real world examples. Wider reading will continue to help broaden his background knowledge. The economics examination
a. From Lesson 1 how many different definitions of economics can you find? Explain briefly how they are related to one another. [definitions, not descriptions].