AP ECON Name:______

2011-12

Unit 1: Basic Economic Concepts (8-12%)

**Reminder, information is posted on the AP Econ website along with a blog, videos, and other helpful resources. www.mrkeconomics.weebly.com

Tuesday Sept. 6: Day 1: What is Economics?

*Concepts: Economic Way of Thinking, Positive vs. Normative Economics, Scarcity, Trade-Offs, Opportunity Cost

*Big Deal Questions:

-What is Economics?

-How does an Economist think?

-What is the importance of scarcity to an economist?

-What is the relationship between scarcity and economics?

*Reading: Economics by Example Ch. 1, Textbook Ch. 1 pg. 3-17

Wednesday Sept. 7: Day 2: Resources and Scarcity, What is Economics all about?

Resource Scarcity Game

*Reading: Textbook Ch. 2 pg. 28-29 & 38-43

Thursday Sept. 8: Day 3: What shall we give up…? Trading can create value

*Concepts: Opportunity Cost, Trade-Offs, Factors of Production, Production Possibilities: “Links and Smiles”

*Big Deal Questions:

-What is the opportunity cost of going to college?

-What are the trade offs of not going to college?

-What is the role of an entrepreneur?

-What can we learn from a production possibilities graph?

*WB Activity #1

*Reading: Handout pg. 23-29

Friday Sept. 9: Day 4: How do we gain from trade?

*Concepts: Production Possibilities, Constant Costs, Law of increasing Costs, Comparative and Absolute Advantage, specialization, terms of trade

*Big Deal Questions:

-Why does the U.S. have the comparative advantage in producing commercial planes?

-Why doesn’t an individual produce all of their needs on their own?

-How does an individual or country know to accept a trade from another country?

*Writing Assign. Free Response #1 Due Monday

*WB Activity #2

*Reading Textbook Ch. 3 pg. 55-63

Monday Sept. 12: Day 5: Who generates demand? Consumer choice

A market in Wheat

*Concepts: Law of Demand, Consumer Surplus, Change in Quantity Demanded, Change in Demand, Demand Determinants

*WB Activity #3, 4

*Reading Textbook Ch. 3 pg. 64-76

Tuesday Sept. 13: Day 6: Producer Choice, and How Demand and Supply Interact?

*Concepts: Law of Supply, Producer Surplus, Change in Supply, Change in Quantity Supplied, Determinants of Supply, Equilibrium, Economic Efficiency

*WB Activity #5,6

*Reading: Textbook Ch. 3 pg. 76-79

Wednesday Sept. 14: Day 7: How Does the Market React? How are Prices Determined?

*Concepts: Invisible Hand, Shortage, Surplus, Excess Demand, Excess Supply, Balancing the Market

*WB Activity #7

*Reading Textbook Ch. 4 pg. 83-93

Thursday Sept. 15: Day 8: Markets

What if the Government interferes with the market?

*Concepts: Price Ceiling, Price Floor, Subsidy, Tax, Black Market, Tax Incidence

* Reading: Review Ch. 1-4

Friday Sept. 16: Day 9: Review Questions

*WB Sample MC and FRQ from Unit 1

Monday Sept. 18: Day 10: Test- Multiple Choice and Free Response

*Reading: Ch. 7 (Calculating GDP)