AP微观经济学一

1、AP微观经济学一FinancialAnalyst EconomicspCollege level coursepGrant student creditpHigher chances for college enrollment % of GradeNumber of QuestionsTime AllottedReading PeriodSection I66 2/36070 minutes Section II33 1/31 long + 2 short50 minutes10 minutesAP Score Qualification5 Extremely well qualified4

2、 Well qualified3 Qualified2 Possibly qualified1 No recommendationpEconomics studies how resources are used and how can be used to their fullest potential.pMacroeconomics: involves economic problems concerned by the nation.pMicroeconomics: concerns the economic problems faced by individuals, or firms

3、.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pPositive economics: is based on the scientific methods, pNormative economics: involves ones value judgments, personal opinions, and not based on a scientific investigation.pNeither of these two has superiority.pA resource is anything that can be

4、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 equipment or machinery, eg. factory, computers, paper clips, etc.pOp cost is what must be sacri

5、ficed 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 = 1.67 pounds butter/gunpOr opp cost of butter = 0.6 guns/butterGunsButter1830All the points along th

6、e frontier are equal: A, B, CPoints inside the frontier, D: resources are not fully used.Points outside the frontier, E: cannot be reached.BACDETwo factors cause the frontier to shift:p Changes in the amount of resources:nLand: new territory found, oil exploitationnLabor: population growth, nCapital

7、: place new equipmentp Changes in technology and productivity.nPositive change: , reach “E”nNegative change: , reach “D”GunsButter1525BAAs more of a product is produced, its op cost increases.When the resources are shifted from butter to gun production, not many more guns are produced, but a lot of

8、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, and the op cost of producing a good becomes greater.Labor hours needed to produce a unit of:CountryWheatClothPortugal1020Eng

9、land2060 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 absolute advantage over England in both wheat and cloth production. But trade can still be beneficial to both countries even if Portuga

10、l has the absolute advantage. As trade is based on comparative advantage, not absolute advantage.CountryWheatClothOpportunity costsPortugal211/2 c/w2 w/cEngland311/3 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

11、 advantage (lower op cost) and traded for the other good.Before specializationClothWheatEngland13Portugal52Total65After specializationEngland06Portugal60Trade is beneficial to all parties even when one party has an absolute advantage in everything.pDemandnLaw of demandnDemand curvenDeterminants of D

12、emandnShift in demand and move along demandpSupply nLaw of supplynSupply curvenDeterminants of supplynShift in supply and move along supplypEquilibriumpPrice controlnPrice ceilingnPrice floorpThe Demand Functionnthe quantity of demanded depends on income, the prices of other goods, as well as other

13、factors pLaw of Demandndemand decreased as the price increasedPP*Q* QpDeterminants of DemandnPrice of productnConsumers incomenConsumer tastesnPrices of substitute productsnPrices of complementary productsnExpected future price of the productpThe Supply FunctionnThe quantity supply depends on the se

14、lling price ,the costs of production which depend on technology, the cost of labor, and the cost of other inputs into the production process. pLaw of supplynsupply increased as the price increasedPP*P0Q* QpDeterminants of SupplynPrice of the productnThe number of sellers (providers, suppliers)nCosts

15、 of resources or productionnPrices of substitute goods (goods that are also produced or could be using similar resources)nPrice expectationsnTechnologynTaxes/subsidiesShifts 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 p

16、rice that simply increases or decreases the quantity supplied or demanded is represented by a movement along 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.Shifts in Demand and Supp

17、ly CurvesAn increase in demandPriceQuantityOriginal demandA decreasein demandOriginal supplyQuantityPriceA decrease in supplyAn increase in suppleChange in DemandChange in Supply Change in Quantity Demand Change in Quantity SuppliedP0P1Q0Q1PriceSupplyQuantityPriceDemandQ0Q1P0P1QuantityMovements alon

18、g Demand and Supply CurvespEquilibrium price and the equilibrium quantitynWhen have a 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: mar

19、ket equilibrium. At the price, the quantity of supply=the quantity of demand. nD:买方对每个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*EODSpIf the price is above its equilibrium level, the quantity willingly supplied exceeds the quantity consumers are willing to purchase, and we have ex

20、cess supply. Suppliers willing to sell at lower price will offer those prices to 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. C

21、onsumers will offer higher prices to compete for the available supply, driving 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 $