AP MICROECONOMICS UNIT #1

BASIC ECONOMIC CONCEPTS

GEORGIA STANDARDS OF EXCELLENCE(GSE) IN THIS UNIT

Fundamentals

COLLEGE BOARD STANDARDS IN THIS UNIT

I. Basic Economic Concepts . (8–14% of AP Microeconomics Test)

A.Scarcity, choice, and opportunity cost

B.Production possibilities curve

C.Comparative advantage, absolute advantage, specialization, and trade

D.Economic systems

E.Property rights and the role of incentives

F.Marginal analysis

KEY IDEAS SHEET

Refer to sheet given out at start of unit

READING ASSIGNMENTS

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  1. Chapter 1: pp. 3-11.
  2. Chapter 2: pp. 28-41.
  3. Chapter 1: pp. 11-18.
  4. Chapter 5: pp. 84-89.
  5. Chapter 5: pp. 96-100.
  6. Chapter 5: pp. 89-92.
  7. Chapter 35: pp. 675-682.

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LECTURES

  1. Introduction to Economics.
  2. Economic Systems and Goals.
  3. Production Possibilities Curves.
  1. Intro to international trade.
  2. Absolute and Comparative Advantage and fair trade.

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TEXTBOOK STUDY QUESTIONS (for you to practice on your own; see me for answers)

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  1. Chapter 1 (p. 19-20): 3, 5, 6, 7, 10, 11, 12, 13, 14.
  2. Chapter 2 (p. 42-43): 1, 2, 3, 4, 11, 12, 14.
  3. Chapter 5 (p. 102-103): 4 a-b, 5.
  4. Chapter 35 (p. 694-695): 3, 4, 5.

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ONLINE QUIZZES FROM TEXTBOOK SITE LINK ON THE BLOG (for your use)

  1. Chapter 1: 1-10.
  2. Chapter 2: 1-10.
  3. Chapter 37: #s 1, 2, 3, 6 and 8.

UNIT PROBLEM SET: due the day before the test; will be provided to you

UNIT GRAPHS: due the day of the test

See handout on the blog for instructions

QUIZZES

1.Economic basics, circular flow, marginal benefit and cost. (1)

2.Economic systems and economic goals. (2)

3.Production possibilities. (3)

4.Absolute/Comparative Advantage/Fair Trade. (4)

TEST PRACTICE: will work on in class the day before the test

  1. Sample Multiple Choice.
  2. Sample Free Response.

TESTS Unit Test #1 with multiple choice and FRQs

VOCABULARY (be familiar with)

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Economics

Microeconomics

Macroeconomics

Positive statement

Normative statement

Scarcity

Trade-offs

Opportunity cost

Incentives

Traditional economy

Command economy

Market economy

Mixed economy

Private property

Self-interest

Competition

Equity

Efficiency

Production possibilities curve

Factors of production

Capital good

Consumer good

Economic growth

Productive efficiency

Allocative efficiency

Marginal analysis

Marginal benefit

Marginal cost

Law of increasing opportunity cost

Absolute advantage

Comparative advantage

Specialization

Terms off trade

Trading possibilities line

Gains from trade

Circular flow

Product market

Factor market

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GRAPH/CHART/APPLICATION SKILLS (BE ABLE TO DRAW THEM TOO)

  1. Interpret a production possibilities table and/or chart.
  2. Solve for opportunity cost using a PPC or table.
  3. Analyze the circular flow model of goods and services.
  4. Solve for absolute and comparative advantage in production of two products by two countries and be able to identify a fair trade.
  5. Demonstrate how trade increases countries’ consumption beyond their own PPC.
  6. Interpret a marginal benefit/marginal cost graph.

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