Download AP ECONOMICS - Steinbrenner High School

2015 AP Microeconomics and Macroeconomics
Summer Reading & Assignment for Ms. Millican’s Class
Summer Reading Book: Naked Economics: Undressing the Dismal Science by Charles Wheelan.
As you read Naked Economics: Undressing the Dismal Science, take notes that will help you
answer the questions below. There will also be an in-class exam on the book in which students
can use their notes (but not the book itself).
HINT: Purchase it used!
ISBN-13: 9780393337648
Publisher: Norton, W. W. & Company, Inc.
Publication date: 4/19/2010
Edition description: Fully Revised and Updated
Edition number: 2
Pages: 354
Amazon:
http://www.amazon.com/Naked-Economics-Undressing-ScienceRevised/dp/0393337642/ref=sr_1_1?ie=UTF8&qid=1367438207&sr=81&keywords=naked+economics
Barnes & Noble:
http://www.barnesandnoble.com/w/naked-economics-charleswheelan/1101994562?ean=9780393337648
ASSIGNMENT DUE DATE: September 8th, 2015 (The Tuesday after Labor Day)
DIRECTIONS:
After reading the book, complete the following questions IN DETAIL. As indicated in the
assignment prompts, you are to submit authentic work using your words and NOT those of the
author. You are not expected to be able to write like a published author/economist. While I
will not be assessing your writing style, I WILL be assessing you on the information and
connections you make in your answers.
QUESTIONS:
Chapter 1: Explain the two basic assumptions that economists make about individuals and
firms. Explain the role and significance of price in a market economy.
Chapter 2: Explain why incentives matter. Evaluate the author’s ideas on black rhino
conservation. Describe a perverse incentive and give an example from a high school student’s
life.
2015 AP Microeconomics and Macroeconomics
Summer Reading & Assignment for Ms. Millican’s Class
Chapter 3: Describe an externality. Explain why government regulation might be a good for an
economy. Include specific examples of other roles the government plays in our economy.
Chapter 4: Discuss the main reasons why government should take a limited role in a market
economy. Explain what is meant by “grabbing hand.”
Chapter 5: Explain how informational asymmetry undermines our market economy. Evaluate
the problem with public health insurance. Discuss adverse selection as it relates to this
chapter.
Chapter 6: The author discusses the symptoms of being poor and the illness of being poor. In
your own words, explain what the author means. Evaluate the author’s notion that Bill Gates
should be that much richer than most of us.
Chapter 7: Describe the relationship between the efficient market theory and financial
markets. Discuss the positives and negatives of this theory. Explain why "Wall Street types" do
not like it. Explain the coin flipping experiment as it relates to investment diversification.
Chapter 8: In your own words, explain the long-term subsidies provided to mohair farmers by
the federal government. Discuss the positives and negatives of these subsidies.
Chapter 9: Explain why the average American is three times as rich as they would have been in
1950. Describe what the author considers the most effective “knock” on GDP. Evaluate the
author’s position on the effectiveness of fiscal policy.
Chapter 10: Describe the “drastic consequence” of poor monetary policy to which the author
alludes at the beginning of the chapter. Evaluate the relationships between: a.) governments
that owe money, b.) government polices to fight inflation, and c.) monetary policy. Explain
how monetary policy can be misused.
Chapter 11: Discuss the relationship between specialization and productivity. Describe the
problem of “good intentions” as related to globalization and sweatshops. State your opinion
on globalization and justify it by citing data from the chapter.
Chapter 12: Explain what we can do to help developing nations. Describe what these nations
must do to help themselves.
2015 AP Microeconomics and Macroeconomics
Summer Reading & Assignment for Ms. Millican’s Class
REQUIREMENTS:
1. Assignment MUST be typed – TIMES NEW ROMAN 12 point font. Double spaced with 1”
margins. The paper should be 3-5 pages in length.
2. DO NOT put the questions above in your paper to make it appear longer than it is. The
heading for the responses for each chapter should be the name of the Chapter in BOLD.
3. All responses must be original and authentic for credit.
4. All questions are due by the first day of school.
5. Due: September 8th, 2015
You must also purchase an AP Economics Review Book that covers BOTH Microeconomics and
Macroeconomics. (The 5 Steps books are now separate.)
 Please remember that you will be taking two separate AP Examinations—one for
Microeconomics and one for Macroeconomics.
Contact Info: Ms. Millican
Email: [email protected]
If you need to contact me, do so via email. I will be checking it this summer.
You can also join the AP Econ Edsby Group, but I do not believe you will have access to Edsby this
summer.