AP Microeconomics Summer Assignment

AP Microeconomics Summer Assignment 1 . W A R N I N G : T h i s b o o k i s a 6 m o n t h r e n t a l . Fall Semester: Read unit one chapters 1-‐3 and expect a test within 2 to 3 days of returning to school. S p r i n g S e m e s t e r : B u y t h e b o o k a t t h e c o n c l u s i o n o f t h e F a l l S e m e s t e r , Read unit one chapters 1-‐3 and expect a test within 2 to 3 days of returning to school. Then complete the following tasks. 2. Look at a newspaper or the website http://www.economist.com to find three stories about the economy that have been in the news lately. For each story identify one or more of the Ten Principles of Economics discussed in chapter one that is relevant and explain how it is relevant. Also look through your text to find a chapter which may shed some light on your article. 3. Describe some trade-‐offs faced by each of the following: a. A family deciding whether to buy a new car b. A member of congress deciding how much to spend on national parks c. A company president deciding whether to open a new factory d. A professor deciding how much to prepare for class e. A recent college graduate deciding whether to go to graduate school or not 4. Find a recent copy of the Economic Report of the President at your library or on the internet (http://www.gpo.gov/fdsys/browse/collection.action?collectionCode=ERP). Read a chapter about an issue that interests you. Summarize the economic problem at hand and describe the council’s recommended policy. 5. Complete the attached worksheets. AP Microeconomics Summer Assignment Name
Economics Book 1
Lesson. 1
Handout 12 (p>ge II
_
Dale'---------- -Production Possibilities Table
TillS Isa model calleda produeUon posslb111llcs table.To use itcorrectly we mustestablish specific rules.
We wUJ reduce the whole economy to just two commodiUes:potatoes and tractors.
We will have the economy using the best known technology and uUUze the avaUabJc resources to
Ute fullest In the production or potaLO<;s and tractors.
Look O\'er the table-notice the various comblna uons-tlltn anbwet t.he que Uons
Combination•
Potatoes (mUIJons of
pounds)
A
B
c
D
E
F
G
H
I
J
54
52
49
45
40
34
27
19
10
0
0
I
2
3
4
5
6
7
8
9
Tractot"8 (In thousands)
1. At comblnaUoo 0, whi;t t IS the produr.Uon of polatoes-----------· tractors
2 At combination E:. what Js the production or pOtatoes------·tractors
?
?
3 What happens to the quantity of potatoes as tmcmr producUtm Increases?
4. As the economy moves from producing tractors Qt combination B to produrln.,g tractors al
rombinauon C. how much change takes plact tn patato producUon?
(This Is lhc
opportunity cost or the amount of potatoes lliat must be sacrificed to produce one II) morl' unit
of tractors. cost = &ACrlRce.)
5 As tractor production moves froru rombtn11tJon C (0 combtnaUon D. how much c:hange ln potato
prodt•cUon takes place?
6 lncreasln,ct tr.1.ctor production from comblnatJon D to combination & changes potato producuon
Uy whal amuunt?
7 If theamount f>f potato production gl\'Cn up 1s called cost as the <:CCHlOmy moves lO Increase tractor
production. then whnt gcncrnli7..(1liOO can be rnade as traclor production moves from B to C.from
C to D.and rrom 0 l.u E'"! (Thls l.s Ute Law of Increasing Cost; cvcrylhJng else betn,ct equal, as onC'
mnre unll LS produced U1e ct
o COl'YRtmtr, Th,. CtnU!I' for .arnltlU!it!d wtth r'IN1lli lon
37
tor resale.
AP Microeconomics Summer Assignment N•m•'-------------------------
Economics Book 1
Lesson 7
Hand.out 12e
Dai•' -----------------------
B.Plot l.he production posstbilllles table to make a Production Possibilities CUrve. Place potatoeson
the vertical ax.ts and tractors on the horlzonta.J.
9. If each polnl on the curve represent& the maximum producuon of eaeh Item at thul polnl.what does
Ute space to Ote left or under the cun·c represent?
10. Plot point alB units of tractors and 40 units of potatoes. Label It ·x.C
· an thts economy produce
the quantities represen<ed by "X"? Why?
II \Vhat mu$l tJ1ls economy do to produce nt point "X'?
12. Plot a point at 3 untt.softrat·tors ond 15 un!t.sorpotaiOC$. We have established In item 9 that lbts
econorny ca.n produce thls. However, lf the curve represents full production and fuJI emp1oyrncnt.
\\'hat would economists ('all production represented by point -y'"/
0 COPYRJCIIT, The O:nter few lng.
31!
AP Microeconomics Summer Assignment Name
Eeonomlcs Book I
Lesson 7
Date,
londoul 13 {page II
A New Defensive Weapons System
and a Production, Possibilities Table
A great advantage or produ<llon posslbUIUes lables ls that they allow you to consider only U1o
mathematlcaJ lmpllcauons ofyou reourse ofacUon.Le., to get three more of these you mustgtve up one
of those.A grcatdl.advantagelsthat U1eycanoot reflect the pol!t1cal and ethical constderattonstovolved
In detennl rung whether soetety should, could. or even wants to glvup one oru-)ose to get three more
of these!
Study the table and rules below then answer the questions t hat follow.
Federal Go•crn.ment-Where the Money Goes (ceott per dollar)
A
B
c
D
E
F
G
H
J
K
Defense
Social Welfare
Rules
For each dollar the federal go\'ernme..t1ttakes tn, U has spc:nd tng discretion
shown abovf"....: all other expenditures are flxed.
Or'lty
In the two areas
As we switch from onemmbluauon to ar1o1hcr. any Increase In totaldlscreUona.ry spentllug111u t
be offset by increased t xation.
1. a. Brrcny d•.srrthe what you reel the consequences would be ror a soctet)' that elected combtnaUon
A. Comblnntlon K
b. Is c:ither- set or con sequcnch really desirable?
0 COI'YRIG II'I n\e C<"nler lor Vamlng. Used v.1th pntaU on
39
AP Microeconomics Summer Assignment Nwn ----------------------
Economk's Book I
Lesson 7
Dote,
Handout 13 (page 21
_
_
2. You arc the president or the UnJted States. The economy IS at oombtnauon 11. Some or your top
sclenlls\$ tell you thai they belleve that given sufficient funding. they can develop a defensive
weapons system Within tc.n years that would mnke this nnuon or any other nauon tnvulncreble
to attack from nuclear mJsslles.To get suffiden.fl unding Cor this system.U'l¢ e.;onomy would have
to shJft rrom combfnauon H to combination G for at least thnt tenyear per1od. Other hlg.hJy..
respected sclenUsttell you 01al the developm-ent of suc.h a system Is lmpOSSiblf! and could only
lead to an lncreostng arms rnce. If successful. the Orst group or srlenttsls say.dcrcnse expendt
lures could be reduced by at least one·Utlrd all all comblnaUons.What nre some of the posslble
consequences lO lhe na:Uon (and you as prc5ldenll) If
a. You evaluate 01e argumc.nls of each group of sc-JenUst.s and declde U1e second group ls co1-rect
and the defensive system Is not feasible?
b. You agree with Lhc nrsl group of scientists, lhe economy shift$, and the $yslcm works?
c. You agree with I hr. Onil group. the economy shifts. and Uuiy
: stem does.n't wotk?
d. You agree, the economy shifis nnd before It can be detenn.lned Jflhe de(en.sJve system works,
voters voteyou and your support..ers out of office becau!Se ordis.sallifacUon over reduced soclal
welfare $pending'!
3. Since the end of the Cold War in lhe late l980s lhc nfor reduced :!pt;nding for ddc:o:n.sha!i
becomemoreofa reallty. ln light of the shift In rnandalotyspending.theUnJted Slntes must adjust
fts goals. Where. on Ule chart would you plat.--e tlh1!S reasonable goal? Bt:: t>ure to be able lO defend
your poslHon with spc('iflc fact-;.
' ..,...."
..,"",
..
,..
,.
IF'
,
p
p
p
.,.
,.
,.
,
I'
'
I
c C()f'YRI{illT. 111r Ct'f!lrr ((If Ll::n mlng_ Ut'Jf'd W'llh p4"'lmi.,•1nn NO! tnr tTI'i<!l t'
40
AP Microeconomics Summer Assignment Nom•--------------------------
P.conomlcs Book I
Lc':sson 10
Handnut 17
Dale· ------------- ----
Circular Flow: A Never-Ending Model
....,.
-
Ua.e U'te above clrcular flow model to answer Ute followtng questions.
"."
.
-....
,;a
...,.,.
.A
L The outer arrows represent-------·
2. The Inner UJTows represent
_
3. Where does U'\e exchange take place be -wcen
4. What exchange takes place In the upper market where the material Oow Is from bush>ess lo
consumer?
5 What exchange take$ place:: ln the upper market where the materinl Oow rs from the con!iumers to
business?
G. The money business pays for eeonomfc resources In lhe job market Js called--------·
7. The monc:y recclvcd by consumers for the cconomtc resources in the job ruarkells
called
- - --0 COPVRICHT, '111e Ct!!ntu lot Lr:\nllftR U5ed With pum.lsslon Notloc sale
53

Download Report