AP微观经济学

1、AP微观经济学AP ECONOMICSCherie Shanc.AP微观经济学FinancialAnalyst AP微观经济学EconomicsAP微观经济学pCollege level coursepGrant student creditpHigher chances for college enrollmentAP微观经济学 % of GradeNumber of QuestionsTime Allotted Reading PeriodSection I66 2/36070 minutes Section II33 1/31 long + 2 short50 minutes10 min

2、utesAP微观经济学AP Score Qualification5 Extremely well qualified4 Well qualified3 Qualified2 Possibly qualified1 No recommendationAP微观经济学AP微观经济学pEconomics studies how resources are used and how can be used to their fullest potential.pMacroeconomics: involves economic problems concerned by the nation.pMic

3、roeconomics: concerns the economic problems faced by individuals, or firms.AP微观经济学成本支出要素需求销售收入产品供给产品需求消费支出要素收入要素供给企 业家 庭产品市场要素市场实物流货币流AP微观经济学pPositive economics: is based on the scientific methods, pNormative economics: involves ones value judgments, personal opinions, and not based on a scientific

4、investigation.pNeither of these two has superiority.AP微观经济学pA resource is anything that can be used to produce a good or service. It includes:nLand: all natural resources.nLabor: all human attributes that are productive, eg. labor force, labor time, intellectual capability, etc.nCapital: productive

5、equipment or machinery, eg. factory, computers, paper clips, etc.AP微观经济学pOp cost is what must be sacrificed to obtain something.pIn the macroeconomics, op cost is: if a nation decides to produce one more unit of product A, how many units of product B will have to be sacrificed?pE.g. opp cost of guns

6、 = 1.67 pounds butter/gunpOr opp cost of butter = 0.6 guns/butterAP微观经济学GunsButter1830All the points along the frontier are equal: A, B, CPoints inside the frontier, D: resources are not fully used.Points outside the frontier, E: cannot be reached.BACDEAP微观经济学Two factors cause the frontier to shift:

7、p Changes in the amount of resources:nLand: new territory found, oil exploitationnLabor: population growth, nCapital: place new equipmentp Changes in technology and productivity.nPositive change: , reach “E”nNegative change: , reach “D”AP微观经济学GunsButter1525BAAs more of a product is produced, its op

8、cost increases.When the resources are shifted from butter to gun production, not many more guns are produced, but a lot of butter must be sacrificed. The op cost of producing guns becomes high.When resources are forced to work in an industry where they are not proficient, they are less productive, a

9、nd the op cost of producing a good becomes greater.AP微观经济学Labor hours needed to produce a unit of:CountryWheatClothPortugal1020England2060 Absolute advantage: the production can be made more efficiently. Comparative advantage: a nation can produce the good with a lower op cost. Portugal has an absol

10、ute advantage over England in both wheat and cloth production. But trade can still be beneficial to both countries even if Portugal has the absolute advantage. As trade is based on comparative advantage, not absolute advantage.AP微观经济学CountryWheatClothOpportunity costsPortugal211/2 c/w2 w/cEngland311

11、/3 c/w3 w/c England has lower op cost in wheat, Portugal has lower op cost in cloth. Each country produced only the good with comparative advantage (lower op cost) and traded for the other good.AP微观经济学Before specializationClothWheatEngland13Portugal52Total65After specializationEngland06Portugal60Tra

12、de is beneficial to all parties even when one party has an absolute advantage in everything.AP微观经济学AP微观经济学pDemandnLaw of demandnDemand curvenDeterminants of DemandnShift in demand and move along demandpSupply nLaw of supplynSupply curvenDeterminants of supplynShift in supply and move along supplypEq

13、uilibriumpPrice controlnPrice ceilingnPrice floorAP微观经济学pThe Demand Functionnthe quantity of demanded depends on income, the prices of other goods, as well as other factors pLaw of Demandndemand decreased as the price increasedPP*Q* QAP微观经济学pDeterminants of DemandnPrice of productnConsumers incomenC

14、onsumer tastesnPrices of substitute productsnPrices of complementary productsnExpected future price of the productAP微观经济学pThe Supply FunctionnThe quantity supply depends on the selling price ,the costs of production which depend on technology, the cost of labor, and the cost of other inputs into the

15、 production process. pLaw of supplynsupply increased as the price increasedPP*P0Q* QAP微观经济学pDeterminants of SupplynPrice of the productnThe number of sellers (providers, suppliers)nCosts of resources or productionnPrices of substitute goods (goods that are also produced or could be using similar res

16、ources)nPrice expectationsnTechnologynTaxes/subsidiesAP微观经济学Shifts in and Movements along Demand and Supply CurvespMovements along demand and supply curves.沿着需求（供给）曲线移动nA change in the market price that simply increases or decreases the quantity supplied or demanded is represented by a movement alon

17、g the curve.pShifts in demand and supply curves.需求（供给）曲线本身发生移动nA change in one of the independent variables other than price will result in a shift of the curve itself.AP微观经济学Shifts in Demand and Supply CurvesAn increase in demandPriceQuantityOriginal demandA decreasein demandOriginal supplyQuantity

18、PriceA decrease in supplyAn increase in suppleChange in DemandChange in SupplyAP微观经济学 Change in Quantity Demand Change in Quantity SuppliedP0P1Q0Q1PriceSupplyQuantityPriceDemandQ0Q1P0P1QuantityMovements along Demand and Supply CurvesAP微观经济学pEquilibrium price and the equilibrium quantitynWhen have a

19、market supply and market demand curve for a good, we can solve for the price at which the quantity supplied equals the quantity demanded. We define this as the equilibrium price and the equilibrium quantity.nE: market equilibrium. At the price, the quantity of supply=the quantity of demand. nD:买方对每个

20、产量愿意支付的最高价格；S:卖方对每个产量愿意出售的最低价格;E:买方愿意支付的最高价格=卖方愿意出售的最低价格PQP*Q*EODSAP微观经济学pIf the price is above its equilibrium level, the quantity willingly supplied exceeds the quantity consumers are willing to purchase, and we have excess supply. Suppliers willing to sell at lower price will offer those prices t

21、o consumers, driving the market price down towards the equilibrium level.pIf the market price is below its equilibrium level, the quantity demanded at that price exceeds the quantity supplied, and we have excess demand. Consumers will offer higher prices to compete for the available supply, driving

22、the market price up towards its equilibrium level.Suppliers reduce productionin response to declining priceSupplyQuantitysuppliedat $600/tonQuantitydemandedat $600/tonDemand3,000Excess supplydrives pricetoward equilibrium$600$500$/tonDemandSupplyQuantitydemanded at $400/tonQuantitysuppliedat $400/tonExc