Advanced Placement Economics Summer Assignment - 2013
Dear Student and Parents,
Economics is taught in the Social Studies department, but it is different from any other
class students have ever taken within the department. Up to now, social studies classes have
been all about history, and the skills necessary to be successful were reading, writing and
critical thinking. All these skills are necessary in economics too, but added to them are
mathematical skills. There is no prerequisite minimum level of math and the math used
in economics does not often rise above the level of simple algebra. However, the ability to
quickly grasp mathematical concepts and use them to analyze real-life situations is
crucial. This combination of math and verbal expertise makes the study of economics
unique among social studies courses. Economists look at the world in a unique way, and
this way of thinking is new for most students. At its most fundamental level, Economics is
way to think about the world. For many of you, this course will provide a new perspective on
things that are part of your everyday life.
The summer assignment introduces students to the economic way of thinking they will
practice all year in this course. The students will learn the basic principles economists use to
study the way people make economic decisions and will use those principles to analyze
interesting real-world problems. Each and every reading, assignment, project, etc. has value.
Please remember that this is a college-level class and the expectations are higher than for
other high school courses. Students are expected to accept responsibility for completing
assignments independently and come to class prepared to contribute.
Required course activities include, but are not limited to, the following:
 Completion of summer assignment
 Keeping a course book
 Participation in class discussion
 Independent reading of the chapter BEFORE coming to class
 Reading quizzes with EVERY chapter
 Prepare to take TWO AP Exams – 1 in Macroeconomics and 1 in Microeconomics
The AP Exam is given in May by the College Board and offers student the opportunity to earn
college credit for what they have learned. The registration fee is between $80-90 PER EXAM.
Because this class is taught and graded on the college level, most students will find it is more
difficult to make A’s. It is EXTREMLY important that students maintain good attendance and
promptly makeup any missed work due to absences.
The summer assignment is due by the START OF CLASS on the first day of school.
Questions, comments, concerns- EMAIL ME ASAP! DO NOT WAIT until the day this
assignment is due!!
Summer Point of Contact is Rob Puterio
Email: robert.puterio@lcps.org
PFHS #: 571-434-3200
SUMMER ASSIGNMENT- PART I DIRECTIONS
1. Students will need to purchase or borrow from the local libraryCommon Sense Economics by Gwartney, Lee, and Stroup (St. Martin’s Press, © 2005)
IBSN 10: 0-312-33818-X
IBSN 13: 978-0-312-33818-3
**This book can be found on both Amazon.com and Half.com for $5.00-$15.00
2. Read each part of Common Sense and complete the corresponding questions (found at
the end of this document). You must type both the questions and your answers. Your
answers MUST BE in your own words or no credit will be given for this part
**Open the word document found on the PFHS home page and you won’t have to type the
questions over again.
3. Be prepared to participate in a detailed discussion of the book within the first week of
class!
4. Be prepared for a Quiz on basic content from the book on the first day of school!
Summer Assignment – Part I
Common Sense Reading Questions
DO NOT complete submit the same answers as someone else in class, you must complete this
assignment on your own and in YOUR OWN WORDS. Plagiarized or copied assignments will receive a
ZERO – NO EXCEPTIONS
1. What are incentives, and how do they influence behavior? Why do the
authors say that, “All of economics rests on (this) one simple principle”?
2.Why do you buy many goods and services from others rather than
producing them yourself? Would Americans, in general, be better off if we
were self sufficient and produced everything we consumed rather than
traded with people abroad?
3.Will hard work guarantee a substantial income? Why or why not?
4 .Describe Adam Smith’s “invisible hand” principle. How does selfinterest
actually work to help others (even when the consequences are
unintended)?
5. “Private ownership forces resource users to confront the cost of utilizing
resources. Without private ownership, it is difficult to see how the
benefits of resource use could be balanced against the costs incurred.”
Evaluate this statement.
6.What are the five freest economies in the world? Are countries with more
economic freedom more prosperous than those that are less free?
7. Describe the protective and productive functions of government.
8 .If federal, state and local governments had no power to tax, what goods
and services would you have to give up or secure privately?
9 .Identify ways the authors believe that budget deficits could be reduced or
eliminated.
10.“When government controls what is bought and sold in an economy, the
first thing that will be bought and sold will be the legislators.” Evaluate this
statement.
11.“The first law of economics is scarcity. The first law of politics is to deny
the first law of economics.” What is meant by this statement? Do you
think this is true?
SUMMER ASSIGNMENT- PART II DIRECTIONS
ARTICLE COMPONENT
As a participant in a senior-level AP Social Studies course, it is critical that you remain current
on national and international events. Throughout the school year, you will be making
connections between AP Economics content and current events. This portion of the summer
assignment is designed to prepare you for sharpening this important skill during the school
year.
1. Select economic issues that you find interesting and important. Some suggestions
for issues to track are listed below; however you are not limited to these
suggestions.
2. Carefully follow the news related to economics throughout the summer.
 Read newspapers (Washington Post, Washington Times, Wall Street Journal)
 News magazines (The Economist, TIME, Newsweek, etc.)
 Search for articles on reputable news websites (CNN, MSNBC, FOX)
3. Clip, copy, or print articles you find particularly important to economics.
You are required to obtain 4 articles from the following date ranges.
You must obtain one article published during each of the following date ranges:
 7/1-7/12
 7/15-7/26
 8/5-8/16
 8/19-9/30
4. Each of the four articles should be accompanied by a typed summary (in your own
words) of approximately one half of a page.
The summary should illuminate the key ideas of the article and may also explain
your reaction to the events/issues described.
ECONOMICS AREAS TO CONSIDER READING ABOUT
(YOU ARE NOT LIMITED TO THESE TOPICS):
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Overall Health of the Economy
The Unemployment Rate
The Role of Government in the Economy/ Sequester/ budget process
The Economic Impact of natural disasters, like Huricane Sandy or Oklahoma Tornado
Economic Issues in Virginia
International Economic Issues (Middle Eastern Conflicts, Iran, China, Europe, etc.)
Value of the AP Econ Summer Assignment – Summative Grade TBA