Motherly Monday, September 10 Tanta Tuesday, September 11

Transcription

1 Motherly Monday, September 10 Tanta Tuesday, September 11 Warm up: Quiz your neighbor from your study guide (10 minutes); come up with questions that you need to ask about topics we have covered. Learning target: I can describe the way money, resources, goods and services flow through the economy and how businesses, households and the government interact in the product and resource markets.

2 FRQ Questions and Practice Team Steak Sauce: what do we need to review?

3 Free Response Questions When you do a FRQ don t forget to R.O.L.L. READ the entire question first ORGANIZE your answer LIST your answers like the question LABEL everything Copyright 3

4 Copyright 4

5 AP Macro 2016 FRQ #3: Complete in class and grade 5

6 AP Macro 2016 FRQ #3 Copyright 6

7 Complete the 2013 FRQ on countries A and B on clean sheet of paper

8 Macro 2013 ( Secured Documents Exam ) Copyright 8

9 Macro 2013 ( Secured Documents Exam ) Copyright 9

10 Copyright 10

11 Copyright 11

12 Wettish Wednesday, Sept. 12 Threatening Thursday, Sept. 13 Please have ONLY the following things on your desk: 1. Completed study guide 2. At least one pencil with an eraser (two would be better) 3. Three pieces of blank paper NO calculators on AP macro tests!! If I see your phone during the test, I will take your phone and you will earn a zero on the test. Register for PSAT by this weekend

13 Test instructions 1. DO NOT write on the multiple-choice test; use blank paper for work 2. You CAN write on FRQ, or you can answer FRQ on clean sheet of paper 3. Bubble in A or B on the answer sheet for your test version; start bubbling in second section 4. Sign answer sheet to show acceptance of honor code 5. No calculators, no phones, no crying 6. Japan/Russia: all bats, not hats!

14 What is a market? The market is the key to this circular flow. A market is a meeting place or mechanism that allows buyers and sellers to come together.

15 ND As M t s E o D C $$$ $$$ Resource Market e c r u o Res s $$$ Taxe ssubsidies Businesses Copyright (F Pr acto od rs u cti of Taxes on ) Transfer Payments Public Goods Go ods $$$ S and e $S$U Revervice PP nue s L $$$SU Y$ IncoPPL (Fa Re ctor pa $$ me sou ym ent r c s) s e Government $$$ Public Goods Individuals s d o Go nd s a ice v ing r e S pend D N S $ A $$ M 15 E

16 Circular Flow Model Vocab Private Sector- Part of the economy that is run by individuals and businesses. Public Sector- Part of the economy that is controlled by the government. Factor Payments- Payment for the factors of production, namely rent, wages, interest, and profit. Transfer Payments- When the government redistributes income (ex: welfare, social security). Subsidies- Government payments to businesses. Copyright 16

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18 How would each event below affect the Circular Flow? Trace the effects through the flow Copyright Consumers begin to save more and spend less. The government increases taxes on consumers. Businesses lay off workers in order to cut costs. The government increases subsidies to farmers. A gas line breaks and causes a gas shortage. 18

19 2012 Exam Copyright 19

20 Circular Flow Model Review 1. Do individuals supply or demand? Both, they demand products and supply resources 2. Do business supply or demand? Both, they supply products and demand resources 3. Who demands in the product market? Individuals and the government 4. Who supplies in the product market? Businesses Copyright 20

21 Let s review with Kahoot! in the Kahoot app or kahoot.it

22 Fantastic Friday, September 14 Modern Monday, September 17 Please put your HW1-5 on your desk so I can check it. Warm up: Create an index card for the circular flow of the economy. Learning target: I can explain the law of demand and the law of supply and I can graph supply and demand; I can define and identify equilibrium.

23 Housekeeping 1. How many of you have a Chrome Book? 2. We are starting weekly USA Test Prep homework. First assignment is due Friday, Sept. 21 by midnight. 3. We are starting weekly current event HW. See website for details 4. Need to take unit 1 a test after school today or Monday: Dayton, Jacob, Denzel, Ghizlane, Reese, Raj, Izaak, Campbell, Brett, Aizja

24 Questions about HW 1-5?

25 Circular Flow Model Vocab Private Sector- Part of the economy that is run by individuals and businesses. Public Sector- Part of the economy that is controlled by the government. Factor Payments- Payment for the factors of production, namely rent, wages, interest, and profit. Transfer Payments- When the government redistributes income (ex: welfare, social security). Subsidies- Government payments to businesses. Copyright 25

26 DEMAND DEFINED What is Demand? Demand is the different quantities of goods that consumers are willing and able to buy at different prices. (Ex: You are able to purchase diapers, but if you aren t willing to buy then there is NO demand). What is the Law of Demand? There is an INVERSE relationship between price and quantity demanded. When price goes down, quantity demanded increases. 26 Copyright

27 Example of Demand I am willing to sell several A s in AP Economics. How much will you pay? Price Quantity Demanded Demand Schedule Copyright 27

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29 Why does the Law of Demand occur? The law of demand is the result of three separate behavior patterns that overlap: 1. The Substitution effect 2. The Income effect Copyright 3. The Law of Diminishing Marginal Utility 29

30 Why does the Law of Demand occur? 1. The Substitution Effect If the price goes up for a product, consumer buy less of that product and more of another substitute product (and vice versa). 2. The Income Effect If the price goes down for a product, the purchasing power increases for consumers -allowing them to purchase more. 30 Copyright

31 Why does the Law of Demand occur? 3. Law of Diminishing Marginal Utility Utility = Satisfaction We buy goods because we get utility from them The law of diminishing marginal utility states that as you consume anything, the additional satisfaction that you will receive will eventually start to decrease. In other words, the more you buy of ANY GOOD the less satisfaction you get from each new unit consumed. Discussion Questions: 1. What does this have to do with the Law of Demand? 2. How does this affect the pricing of businesses? 31

32 Can you see the Law of Diminishing Marginal Utility in Disneyland s pricing strategy? Change N/A $54 $33 $15 $10 $5

33 Let s Buy & Sell Some Wheat Half of class will be sellers, half will be buyers We are selling bushels of wheat Three rounds, each five minutes Buyers and sellers negotiate the sale of wheat Record each of your transactions! Write down the budgeted amount on your card, then write down the agreed upon price

34 Sellers Only one transaction per card turn them in after a sale. Do not let people know what is on your card! Sellers: One card at a time that shows your budget or minimum price for selling one bushel of wheat As a rational seller, you want to sell at or above the budgeted price on your card

35 Buyers Only one transaction per card turn them in after a sale. Do not let people know what is on your card! Buyers: One card at a time that shows your budget or maximum price for purchasing one bushel of wheat As a rational buyer, you want to buy at or below the budgeted price on your card

36 Let s Buy & Sell Some Wheat Everyone: You might have to take a loss on one card in order to turn it in and get a new card. You can make up the loss later! The more trades you make, the more likely you are to make a profit. Keep an eye on the tally sheet on the board to see where sales are taking place.

37 Economic Assumptions to Remember: 1. People behave rationally 2. People respond to incentives 3. Buyers and sellers enter into exchanges when they believe they will be better off

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