Basic Economic Problem: The basic economic problem is scarcity, there are only a
limited number of resources and there are not enough to meet the needs of everyone.
The problem is how to distribute these limited resources.
1. The three major economic systems are a Free Market Economy, Command or
Planned Economy and a Mixed Economy.
2. The three questions all economies must answer are what, how and for whom.
What will be produced, how will it be produced and for whom will th
Unit 5: The
(aka: The Factor Market or Input Market)
Perfectly Competitive Labor Market
Many small firms are hiring workers
No one firm is large enough to manipulate the
International Trade and
Closed vs. Open Economies
A closed economy focuses only on the
domestic price, and the open economy
trades for the lower world price.
Export Goods & Services 16% of American
U.S. Exports have doubled as a perc
AP Macroeconomics Problem Set #3
Aggregate Demand, Aggregate Supply and Fiscal Policy
l. ' (#85) Aggregate Demand and Aggregate Supply
a. Dene and give examples of the determinants of aggregate demand. ( _/10)
b. Dene and give exampl
Unit I: Basic Economic Concepts
Problem Set #1
1. Complete each of the following tasks with short paragraphs:
A. Define scarcity and explain how it is related to cho
AP Macroeconomics Problem Set #4
Money, Banking and Monetary Policy
1. ( _/50) Money, Banking and Financial Markets
Define and give specific examples of each of the following:
5? l 41.x) i u
CH 4: Demand 8: Supply
1. Explain the difference between a change in demand and a change in quantity demanded. What leads to each of t.
changes? ' '
V .g/HM. ,uwl . - " ' :- ' u' 'r' killirllliif 'Nl Lilli/2:14 '
AP Microeconomics is a university level, internationally recognized course
administered at the high school level culminating in an exam in May.
Performance on the AP exam may provide college credits and a mark that is
on your university transcript (and
Chat?ch l 'DEHANDSHPW Mimi/1%-
J) A (hang: m quaniy demanded occurs a when The price 0? me and imrmseg but Theovev Farms
Wm can \suevxce demand 903th same, chevenmmn ac These inuencea do Chanje ,
114cm: a damage in dmam. Ens change am am Increneeldecveqse
9 52 57%
Chapter 6 Homework Questions
3) Why is the demand curve the same as the marginal benefit curve?
l i - r. 7
he Morallhl DEHF'EH' 7. mega, V951 Eli my [Mm/nal. PH, 5, he JEHEW? t)
in order 'ro obtain [Mather , r :- a r " d
nut in 3nd av 59*VlCE. T
Characteristics of the Ideal Classroom
1. Fun and Meaningful
2. No Busy Work
4. Energy and
6. Varied Instruction with
7. Clear Expectation
8. Student Input Valued