AP MICROECONOMICS UNIT #1BASIC ECONOMIC CONCEPTS

GEORGIA STANDARDS OF EXCELLENCE (GSE) IN THIS UNIT

Fundamentals

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COLLEGE BOARD STANDARDS IN THIS UNIT

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

A. Scarcity, choice, and opportunity costB. Production possibilities curveC. Comparative advantage, absolute advantage,

specialization, and tradeD. Economic systemsE. Property rights and the role of incentivesF. Marginal analysis

KEY IDEAS SHEETRefer to sheet given out at start of unit

READING ASSIGNMENTS1. 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.

LECTURES1. Introduction to Economics.2. Economic Systems and Goals.3. Production Possibilities Curves.

4. Intro to international trade.5. Absolute and Comparative

Advantage and fair trade.

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

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.

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 testSee handout on the blog for instructions

QUIZZES1. Economic basics, circular flow, marginal benefit and cost. (1)2. Economic systems and economic goals. (2)

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3. Production possibilities. (3)4. Absolute/Comparative Advantage/Fair Trade. (4)

TEST PRACTICE: will work on in class the day before the test1. Sample Multiple Choice.2. Sample Free Response.

TESTS Unit Test #1 with multiple choice and FRQs

VOCABULARY (be familiar with)

EconomicsMicroeconomicsMacroeconomicsPositive statementNormative statementScarcityTrade-offsOpportunity costIncentivesTraditional economyCommand economyMarket economyMixed economyPrivate propertySelf-interestCompetitionEquityEfficiencyProduction possibilities curve

Factors of productionCapital goodConsumer goodEconomic growthProductive efficiencyAllocative efficiencyMarginal analysisMarginal benefitMarginal costLaw of increasing opportunity costAbsolute advantageComparative advantageSpecializationTerms off tradeTrading possibilities lineGains from tradeCircular flowProduct marketFactor market

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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