Download DWU #1

DWU #1
Should the government provide its’ citizens
with a free education? Should the
government give you free food? Free house?
Free college? What should the government
provide for its’ citizens?
Explain.
DWU #2
• What are the three productive resources?
• Why are they important?
• Explain each one in detail.
DWU #3
• What is the relationship between Price and
Quantity Demand?
• Using the demand schedule below create a
demand curve.
– Price
a. $50
b. $75
c. $100
d. $110
Quantity Demand
100
75
30
20
-Calculate the slope of the demand curve from pt. b to d
-What does your answer mean?
DWU #4
• What would happen to your demand if the
price of everything dropped significantly.
Explain.
• What would happen to your demand if the
price of everything went up significantly.
Explain.
What is the relationship between price and
demand?
DWU #3
• Explain marginal analysis.
• Explain how you used marginal analysis while
buying a good or service.
– Use costs and benefits in your answer.
DWU #1
• What are three economic systems?
• Explain the differences between them.
• What is a mixed, market and traditional
economy.
DWU #4
• Explain the difference between opportunity
costs and trade-offs.
• Compare it to a Friday night activity and
describe how you calculated your opportunity
cost.
DWU#
• What is the production possibilities curve?
• What does it mean if you are producing along
the curve?
• What does it mean if you are producing inside
the curve?
• If you have a company moving production
from 12 million cars to 18 million cars and
trucks moving from 22 million to 17 million,
what is the opportunity cost for this business?
DWU #4
• Why do we calculate slope for a business?
• If this was a demand schedule for shoes, what
would calculating slope help us understand?
• Using the demand schedule below, calculate the
elasticity from pt. b to d .
• Are these shoes elastic or inelastic?
– Price
a. $50
b. $75
c. $100
d. $110
Quantity Demand
100
75
30
20
DWU #1
• What is the law of supply?
• What is the relationship between price and
quantity supply?
• List and explain the 4 determinants of supply.
• Illustrate the supply curve.
DWU
• List the determinants of supply and demand.
• What happens to the demand/supply curve if
a company has to recall a product because of
a defect?
• What determinant is affected?
• Graph the results of the graph and what is the
effect of price and quantity?
DWU #3
•
•
•
•
List the determinants of supply and demand
List the slope formula.
List the elasticity formula.
Calculate the slope and elasticity of the
following price and quantity changes.
– Price change in gas from 3.50 to 4.00
– And a quantity demand change from 16 million
gallons sold to 14 million gallons sold.
DWU #2
• What does it mean if our economy has a shortage
of water or gasoline?
– What is a shortage?
– What happens to price?
– Graph the following scenario? If you dare!
The market equilibrium for gasoline nation wide is
currently at $2.76 per gallon and 26 million gallons
demanded daily. Gas companies find it increasing
harder to explore where it can only offer 20 million
gallons at which consumers demand 30 million on
Thanksgiving holiday.
DWU #4
• Define the four market structures:
-monopoly-perfect competition-monopolistic competition-oligopoly-
DWU #
• If you were in the market for some Snoop Dogg
concert tickets and there were only 20,000 tickets
supplied but 80,000 people wanted to go, what
would result?
• Market Equilibrium P=60 Q=50,000
• Graph it…
• Shortage/Surplus?
• Price?
• How can this situation lead someone to EBAY or
craigslist?
DWU #4
• What is total product?
• What is marginal product?
• What is the law of diminishing returns?
Labor`
Total Product Marginal
Product
0
0
1
900
2
2000
3
3500
4
4400
5
4300
DWU #3
• Why do people invest in the stock market?
• What does “diversify your portfolio” mean?
-USE THE SAYING “DON’T PUT ALL YOUR EGGS
IN ONE BASKET”`
DWU #
• What are the two problems that our economy
faces?
• What are the two fiscal policies that our
government implements during these
problems?
• Graph the result of the fiscal policy that fixes a
recession.
DWU #
• What are the four components of Aggregate
Demand?
• If imports = 30 billion dollars worth of goods
while exports =45 billion dollars worth of
goods, what happens to aggregate demand?
Graph the result of the trade deficit above.
DWU #
• What is nominal GDP? What is real GDP?
What is the GDP deflator? What would a GDP
deflator of 105 mean? What would a GDP
deflator of 93 mean?
• Calculate the following:
• Real GDP = 13 Trillion
DWU #1
• What is fiscal policy?
• What are the two things that the government
can do to fix the problems?
• Describe GDP and what makes up GDP?
• How can the government help Aggregate
Demand?`
DWU’#2
•
•
•
•
What is tax season?
What does it mean to do your taxes?
What if you don’t do your taxes?
Why do you want to show the government
that you don’t make that much money?