AP Econ F14
Week#1
Economics 9/2/14
http://mrmilewski.com
• OBJECTIVE: First day of school administrative
stuff. AP Micro/Macro-I.A
• Language objective: Discuss norms for the class and what
economics is.
• I. Welcome Back
• II. Attendance
• III. Distribution of:
-syllabus, points, test dates, & textbooks
-desks, fans, floor, & bags
-discuss scarcity
• IV. Homework: Read p. 3-8
What you need each day
• 1.) Textbook
• 2.) Something to write
with
• 3.) Notebook
• 4.) Planner
Cell Phones
• There is a time and a place for
cell phones, but…
1.) During instruction, there is
no place for it.
2.) During class, there is no time
for games.
3.) During class, there is no time
for social media.
The Fundamental Economic problem is:
• Scarcity - the condition that results from
society not having enough resources to
produce all the things people would like to
have.
• Economics - the study of how people try to
satisfy what appears to be seemingly
unlimited & competing wants through the
careful use of relatively scarce resources.
Need v. Want
• Need - a basic requirement for survival &
includes food, clothing, and shelter.
• Want - a way of expressing need.
Homework Tonight
• Read pages 3-8
• Get your syllabus
signed
• Get a notebook
Economics 9/3/14
http://mrmilewski.com
• OBJECTIVE: Examine the factors of production and the
Production Possibilities Curve. AP Micro/Macro-I.B
• Language objective: Discuss land, labor, capital, entrepreneurship, and
production.
• I. Macroeconomics pre-test
• II. Journal#1
-Factors of production & the PPC
• III. Video on PPC
• IV. Practice problems on PPC (p.12)
• IV. Homework
-Read p. 9-18
-Answer question#1,3,7 & Problem #5 p.20-21
The Factors of Production
• LAND – the gifts of nature
• LABOR – people with all their efforts & abilities
• CAPITAL – the tools, equipment, machinery, and
factories used in the production of goods & services
• ENTREPRENEURS – a risk taker in search of
profits who does something new with existing
resources
Production Possibilities Curve
http://www.harpercollege.edu/mhealy/eco212/lectures/econgrow/econgrow.htm
• PPC is a diagram that
represents various
combinations of goods
and/or services an
economy can produce
when all productive
resources are fully
employed.
• The line of the PPF
shows what is possible
if all of the factors of
production are fully
employed.
PPC
Opportunity Cost on the PPC
Measuring Opportunity Costs
• Opportunity costs are measured in terms
of what you give up.
• The cost of using a pass in Mr. Milewski’s
class is the extra credit you lose.
• The cost of increasing gun production is
the butter you give up.
Graphing Choices
• Passes
Remaining
3
2
1
0
Extra Credit
Lost
0
10
20
25
AC DC Econ
• Video on PPC Monsters
Inc.
• Example p.12
• Video on PPC Shift
Devo “Shift it”
• 1.) Faster Computers/
Better Tech
• 2.) Destruction of
Power Plants
• 3.) High Unemployment
• 4.) Better education
Homework Tonight
• Read pages 9-18
• Answer question#1,3,7
& Problem #5 p.20-21
• Additional video: Khan
PPC
Economics 9/4/14
http://mrmilewski.com
• OBJECTIVE: Examine the factors of production
and the Production Possibilities Curve. AP
Micro/Macro-I.B
• Language objective: Discuss production.
• I. Journal#2
-review factors of production/homework
• II. Journal#2
-question#12 & TINSTAAFL
TINSTAAFL
• There is no such thing as a free lunch
Other terminology:
• Inverse relationship – as one number goes
up, the other number goes down
• Direct relationship – as one number goes
up, so does the other number.
Economics 9/5/14
http://mrmilewski.com
• OBJECTIVE: Examine the factors of production
and the Production Possibilities Curve. AP
Micro/Macro-I.B
• Language objective: Discuss production.
• I. Journal#3
-Do now: PPC
-notes on marginal benefit & basic math
• II. Homework
-Answer questions#9&10 & Problem #7 p.20-21
& Read p.30-32
Marginal Benefit and Cost
• For our purposes in studying economics, “marginal”
means “extra”, “additional”, or a “change in” the
status quo or the existing state of affairs.
• Marginal benefit (MB) is the extra (additional)
benefit of consuming one more unit of some good or
service. The change benefit when one more is
consumed.
• Marginal cost (MC) is the extra (additional) cost of
producing one more unit of output equal to the
change in total cost divided by the change in output.
Example #2
Example #2
Example #2
Direct and Inverse Relationships
• A direct relationship (positive relationship) has
two variables that change in the same direction.
For example: An increase in consumption is
associated with an increase in income. (See
Figure 1, page 22)
• An inverse relationship (negative relationship) has
two variables that change in the opposite
direction. For example: When the price of tickets
to a sporting event decreases, attendance will
increase. (See Figure 2, page 23)
Income and Consumption
• In regards to income and consumption,
income is generally the independent variable
and consumption is the dependent variable.
You have to make money to consume goods
and services.
• As income rises, consumption rises. (Figure 1,
page 22)
Dependent and Independent Variables
• Economists try to determine which variable is
the cause and which variable is the effect in
any given relationship.
• The independent variable is the cause or
source; it is the variable that changes first.
• The dependent variable is the effect or
outcome; it changes because the independent
variable changes.
Game Tickets and Attendance
• Ticket prices are the independent variable and
attendance is the dependent variable.
• The price of a ticket to attend a sporting event is
set before the season begins and it determines
the attendance at games. If the price is set too
high, less people will buy the ticket. If the price is
lower than what consumers expect, they will buy
more tickets. Attendance does not determine the
price of a ticket. (Figure 2, page 23)
Homework Tonight
• Answer question#9&10
& Problem #7 p.20-21
• Read p.30-32
• Additional video: Khan
PPC