Saturday, December 27, 2014

Christmas Econ






It's a Wonderful Life - Econ Stories


Deck the Halls with Macro-Follies

Market behavior really is motivated largely by the same desire that transformed Scrooge on Christmas morning—the desire to help those who mean the most to us—and that motivation, when directed by the mundane morality of markets, results in our also serving the interests of multitudes of people we will never know. By emphasizing that a good economy, like a good life, is best achieved by the mundane morality of markets coupled with recognition of the motivational importance of magnanimous morality, economists would make a case for the morality of markets that has some of the same emotional appeal as does the transformation of Scrooge in Christmas Carol.








And the economists, oh, the economists, how they counted, and still count. Take up any copy of The American Economic Review to hand (surely you subscribe?) and open it at random. To perhaps Joel Waldfogel, "The Deadweight Loss of Christmas" (no kidding: December 1993; Waldfogel is arguing that since a gift is not chosen by the recipient it is not worth what the giver spent, which leads to a loss compared with merely sending cash. Who could not love such a science of Prudence?




Wednesday, December 10, 2014

Monopoly Cheat Sheet

Monopoly  Cheat Sheet

I just finished this but will work more on it later next week. All the pieces are added but just not quite right. Remember to do all the Multiple choice and the FRQ's before the exam. Questions, comments,, wcwaugh@aol.com.

Thanks Hui Jing Seah


Wednesday, December 3, 2014

Perfect Competition Cheat Sheet

Perfect Competition Cheat Sheet

Again this cheat sheet is no replacement for actually doing all of the Perfect Competition FRQ's and MC questions. It is a good way to check yourself, enjoy. If you need this e-mailed to you, as its a bit hard to read please, ask. wcwaugh@aol.com



Monday, December 1, 2014

Basics, PPC, Comparative Advantage, Utility, Cheat Sheet

Basics, PPC, Comparative Advantage, Utility,  Cheat Sheet

Don't be fooled. This stuff is more complicated than it looks and it is always on the test.





Friday, November 28, 2014

Resource Costs (Labor) 1

Resource Costs (Labor) 1 

Ok, just put this section together,, more to come. Comments,, wcwaugh@aol.com



Tuesday, November 25, 2014

Government Intervention Cheat Sheet

Government Intervention Cheat Sheet

A cheat sheet is no replacement for doing all of the FRQ's on Government Intervention, go to the AP's exam website and do all of the FRQ's.  AP Microeconomic Exam
Tariff - (World Price) - 20014, 2012, 2004, 2004B, 2003B
Price Ceiling - 2006B
Price Floor - ?
Per Unit Tax -2010, 2005, 2004
Subsidy - 2005B

Monday, November 24, 2014

Elasticity (XED,YED) Cheat Sheet

Elasticity (XED,YED) Cheat Sheet 



Market Failure Cheat Sheet

Externality Cheat Sheet


The APis fairly straight forward asking about externalities/ market failure but they do tweak it a bit by asking how dead weight loss DWL is effected by certain solutions (Tax, subsidy, lump-sum tax, etc.) Be prepared.
meet-up tonight at 6pm in Stanley @ Pacific Coffee
http://www.meetup.com/Hong-Kong-AP-Economics/
Welcome if you are in HK.










































Externality Check list,
When crafting a diagram, make sure that all necessary parts are added for the readers.
I made this checklist for the IB exams but it works equally well for the AP.


Elasticity Cheat Sheet 1 (PED, TR, PES)

Elasticity Cheat Sheet 1 (PED, TR, PES)

 Ok, I finally got started on a Elasticity cheat sheet, covering PED. Total Revenue and PES. Number two will cover YED & XED. I'm sure I will change this in some fashion in the next few days but it's a good start. I really need some way of being able to download this stuff to a site that others can snatch it off of,,, any suggestions? (Email me - wcwaugh@aol.com)


Sunday, November 23, 2014

Demand & Supply - Cheat Sheet

Demand & Supply - Cheat Sheet

I haven't in the past actually created a cheat sheet for the Demand & Supply section of the AP economics course. Anyway here it is,, will update it with my own graphs over time. 





Thursday, November 20, 2014

Efficiency and the Relationship between Price & Marginal Costs

Efficiency

Productive Efficiency - goods are produced in the least costly way.
Allocative Efficiency – where the right amount (according to society) is produced.

Allocative Efficiency  P = MC , MC = P
·       Money price is society’s measure of the relative worth of the unit.  (price is the benefit)
·       An additional unit of a products value must include what could possibly have been made (opportunity cost)
If price is equal to marginal cost then the right goods (according to society) are being produced. 

Under-allocation  P > MC , MC < P

If price is more than the marginal cost there is an underproduction of goods (society wants more). Society values more of what is being produced than what could alternatively be produced with the same resources.

Over-allocation P < MC , MC > P


If price is less than marginal cost there is an overproduction of goods (society wants less). Society values what could be produced alternatively than how the resources are being presently used.

Notice, that the price is the same as Demand and Price are the same for Perfect Competition. 

  • Quantity of production (output) is what you should focus on,,, as we produce more (Q3than the price consumers are willing to pay or marginal costs increase quickly. We are overproducing in relation to the price. 
  • If the price (quantity produced at that price, Q1) is above our marginal costs we are not at an allocatively efficient quantity,, we are underproducing. 



Perfect Competition (2008) Multiple Choice

Perfect Competition (2008) Multiple Choice

2008






2008#11 - A#24 - B#26 - C#27 - C#38 - E#54 - D


Perfect Competition (2005) Multiple Choice

Perfect  Competition (2005) Multiple Choice

2005





#9 - B
#24 - E
#25 - C
#40 - A
#41 - A
#49 - E

Perfect Competition (2000) Multiple Choice

Perfect Competition (2000) Multiple Choice

2000






2000

#3 - E
#8 - C
#23 - B
#24 - B
#25 - C
#26 - E
#39 - C
#47 - C
#54 - A


Output & Costs (1995,2000,2005,2008) Multiple Choice

Output & Costs (1995,2000,2005,2008) Multiple Choice

1995





2000





2005









2008






1995
#6 – C
#7 – D
#8 – A
#22 – E
#52 – B

2000
#6 – C
#7 – E
#22 – C
#36 – E
#37 – C
#38 – B

2005
#6 – A
#8 – A
#10 – B
#21 – E
#36 – B
#37 – A
#51 – B
#52 – D
#54 – A

2008
#6 – C
#23 – C
#36 - B
#37 – C
#50 - C