AP MACROECONOMICS UNIT 2
Adam Smith and the Free Market

1/20 - 2/9

UNIT 2 CONTENT MAP

Unit 2 Review Notes

Unit 2 Review Powerpoint

VOCABULARY:

TRADITIONAL

BARTER

COINCIDENCE OF WANTS

CASCADE FAILURE

COMPARATIVE ADVANTAGE

ABSOLUTE ADVANTAGE

GAINS FROM TRADE

CAPITALISM

INVISIBLE HAND

SPECIALIZATION

CONSUMER SOVEREIGNTY

DEMAND

LAW OF DEMAND

QUANTITY DEMANDED

DEMAND CURVE

DEMAND SCHEDULE

SUBSTITUTION EFFECT

INCOME EFFECT

DIMINISHING MARGINAL UTILITY

NON-PRICE DETERMINANTS

T.I.M.E.R.

SUBSTITUTE

COMPLEMENT

SUPPLY

LAW OF SUPPLY

QUANTITY SUPPLIED

SUPPLY CURVE

SUPPLY SCHEDULE

LAW OF INCREASING COSTS

G.O.N.I.C.E.

MARKET EQUILIBRIUM

SURPLUS

SHORTAGE

WEEK 3

1/19 - 1/22

LESSON

IN CLASS

HOMEWORK

Wednesday

Lesson 1

Review Unit 1 Test

Please sit in groups with students who had the same version of the test you did. Compare your answers with theirs and discuss any differences you may have. Please take notes on the test as you go over the questions.

Read:  Krugman,  Module 4 pg. 23

Homework: For discussion purposes read the articles on Adam Smith and The Wealth of Nations

Thursday

Lesson 2

Watch: MASH: For Want of a Boot

http://www.crawfordsworld.com/rob/AP_Macro_Semester/APM2_Images/mash.jpg

Activity: Video Questions

  • What is the economic term for a direct exchange of goods for other goods?
  • What is necessary for the direct exchange of goods in the market to be successful?
  •  Track the transactions in the video. Can you use a graph to illustrate the exchanges?
  • Briefly explain the Cascade Failure in the episode.
  • Was the economic system portrayed in MASH efficient or inefficient?  Why or why not?
  • What might have made this system work more efficiently?

 

Answers must be In Your Own Words. This MUST be turned in at the END of class -- any assignment turned after class will be penalized 1 point.

Read:   Brief biography of Adam Smith

Bring:  Pencil for Video Quiz

*Makeup - if you are excused absent the day of a video you must make the quiz up within one week.. Follow these directions:

1. Watch Economic U$A #2: The Market System online here.
2. Take the 5 question online quiz here.
 3. After completing the quiz online, Email your scores to yourself, then forward those results to rcrawford@nova.edu

 

Friday

Lesson 3

ESSENTIAL QUESTION: What is Capitalism?

  • Adam Smith
  • Capitalism
    • Self-interest
    • Private Property
    • Freedom of Choice
    • Markets
    • Competition
    • Laissez-Faire

Activity: Quiz 2.1

QuickNotes: Unit 2 Powerpoint Lesson 2.1

Read:  Krugman,  Module 5 pp. 48-49

Watch: ACDC Economics Flip Video 2.2: The Demand Curve

http://cdn5.freedomoutpost.com/wp-content/uploads/2014/08/capitalism.jpg

WEEK 4
1/25 - 1/29

LESSON

IN CLASS

ASSIGNMENTS

Monday

Lesson 4

ESSENTIAL QUESTION: What is Demand?

  • Demand

    •  Diminishing Marginal Utility

    • Income Effect

    • Substitution Effect

Activity: Demand worksheet, Part 1

QuickNotes: Unit 2 Powerpoint Lesson 2.2

Read:  Krugman,  Module 5 pp. 50-57

http://i.investopedia.com/inv/tutorials/site/economics/economics3.gif

Tuesday

Lesson 5

ESSENTIAL QUESTION: How can Utility be measured and graphed?

  • Non-Price Determinants
    • Tastes
    • Income
    • More/Less
    • Expectations
    • Related Goods

 

Activity: Demand worksheet, Part 2

Assignment: Complete the Demand worksheet

 

This MUST completed by the END of class.

Read:  Krugman,  Module 6 pp. 59-61

Watch: ACDC Economics Flip Video 2.3 The Supply Curve

http://revisionguru.co.uk/revisionguru/wp-content/uploads/2012/06/1.2-5.jpg

Wednesday

Lesson 6

ESSENTIAL QUESTION: What is Supply?

  • Supply
    • Diminishing Marginal Product
    • Increasing Costs

Quiz:  2.1 Demand

QuickNotes: Unit 2 Powerpoint Lesson 2.3

 

Activity: Supply worksheet, Part 1

Read:  Krugman, Module 6 pp. 61-66

http://i.investopedia.com/inv/tutorials/site/economics/economics4.gif

Thursday

Lesson 7

ESSENTIAL QUESTION: How can marginal costs be measured?

  • Non-Price Determinants
    • Government
    • Other Opportunities
    • Number
    • Investment
    • Costs
    • Expectations

Activity: Supply worksheet, Part 2

Assignment: Complete the Supply worksheet

This MUST completed by the END of class.

Read:  Krugman, Module 6 pp. 67-69

 

Watch: ACDC Economics Flip Video 2.4 Equilibrium

http://www.bized.co.uk/sites/bized/files/images/supply_movement.gif

Friday

No School

WEEK 5
2/1 - 2/5

LESSON

IN CLASS

ASSIGNMENTS

Monday

Lesson 8

ESSENTIAL QUESTION: How is the market economy self-correcting and self-adjusting?

  • Shortage
  • Surplus
  • Market Equilibrium
  • Markets and Profits

QuickNotes: Unit 2 Powerpoint Lesson 2.4

Activity: Market Equilibrium Exercise

Read: online synopsis of Economics U$A #16

Bring:  Pencil for Video Quiz

http://crawfordsworld.com/rob/AP_Macro_Semester/APM2_Images/Review2.gif

Tuesday

Lesson 9

 Watch: Economics U$A #16: Market Equilibrium

http://www.crawfordsworld.com/rob/AP_Macro_Semester/APM2_Images/EconU$A.gif

This video will illustrate how supply and demand lead to market equilibrium, and how disequilibrium corrects itself in a free market—but sometimes needs government intervention. 

Be prepared to answer a short quiz based on the questions listed during the video, and discuss the answers.

Read:  Krugman,  Module 7 pp. 71-76

Watch: ACDC Economics 2.6 Floors and Ceilings

*Makeup - If you are excused absent the day of a video, YOU must take the responsibility to make the quiz up before the end of the unit. Please follow these direction:

  1. Watch Economics U$A #16: Supply and Demand online here.

  2. Take the 10 question online quiz here.

After completing the quiz, forward your emailed score results to rcrawford@nova.edu 

Wednesday

Lesson 10

ESSENTIAL QUESTION: How effective are government controls on prices?

  • Price Floors
  • Price Ceilings
  • Black Markets

 

QuickNotes: Unit 2 Powerpoint Lesson 2.5

 Read:  Online synopsis of Trading Places

Watch: ACDC Economics Flip Video 2.5 Double Shifts

Bring:  Pencil for in-class quiz.

Thursday

Lesson 11

Watch: Trading Places Exercise

http://online.wsj.com/media/TradingPlaces_E_20090901234140.jpg

 

Assignment:  You are to follow the transactions occurring on the floor of the CBOT Frozen Concentrated Orange Juice trading pit, and graph the changes on a supply and demand curve to estimate equilibrium over the course of the day.

You must complete the following quiz by the end of class.

Friday

Lesson 12

Activity: Sidewalk Chalk

https://encrypted-tbn2.gstatic.com/images?q=tbn:ANd9GcQidkh5f8SearfvZjcMu4CD9zj4e9BlyTTUGEuJCnCW5Z-JScVs

Read:

WEEK 6
2/8 - 2/12

LESSON

IN CLASS

ASSIGNMENTS

Monday

Lesson 13

Review for Unit 2 Test

    • Module 1, pp. 2-8
    • Module 3, pp. 16-22
    • Section 1 Appendix, pp. 34-37
    • Module 4 pp. 23-29
    • Module 5 pp. 47-56
    • Module 6 pp. 59-69
    • Module 7 pp. 71-76

 

 

Review Unit 1 and 2: Use online Textbook site chapter notes and  practice section quizzes

Watch:

Tuesday

Lesson 14

Unit 2 Test

This test will consist of 40 multiple choice questions and one brief essay from the material and concepts in Unit 1-2.

You will be expected to draw a graph for the essay portion of this test, and write an essay in brief format.

The test will be counted out of 50 points.

Bring:  Pencil for Unit 2 test

REMEMBER ALL TESTS ARE CUMULATIVE!