Advanced Placement Microeconomics Daily: Staple/tape the ½ sheet into your notebook and answer the questions about Chris Van Horn’s unique business.

Let’s Make a T-Chart There are two different ways to answer question two. Some analyzed based on the facts presented, others may have analyzed based on opinion/judgments. Let’s List them: FACTUAL REASONS JUDGMENT/OPINION

There are Four Goals To Keep in Mind When Making Decisions: 1.Efficiency: The amount supplied of a product is appropriate for the amount of it demanded by the population; done for the least possible cost. Voluntary exchanges are a great indicator that efficiency exists. [Voluntary Exchange: producers and consumers agree what to make and how much to make.]

Goal #2 2. Equity: Equity is the eye of the beholder. Are the decisions and choices made fair; are the benefits gained greater than losses incurred? Communism vs. Capitalism

Goals #3 3. Growth: Individuals, societies and firms naturally engage in activities that encourage expansion. Without it, the standard of living fails to improve *Balancing of GDP Growth & Population Growth

Goals #4 4. Stability: low inflation, steady GDP growth, and low unemployment are indicators that stability is present (magic 3%). Dramatic Change is Bad for Producers, Consumers, & Government

Variables There are so many what ifs in studying economic decisions!! Economists must be able to isolate certain variables that can affect decision-making while holding all others constant; hence, Ceteris Paribus – all else equal, a device used to isolate the impact of one single factor; helps to simplify reality and focus on what matters

WHERE DO YOU STAND? Marginal Analysis: weighing the costs and benefits of your choices; what you choose and what you sacrifice. First you must decide to support or oppose the decision. Second, regardless of your decision what goal is govt trying to promote with this program? Third, while promoting one goal, what other goal is sacrificed?

Top Ten Fun Get your index card numbered 1 – 10 and be ready!!!! Your Category is…..

The Top Ten Most Common Words Written in English 10.For 9. It 8. Was 7. Is 6. To 5. In 4. A 3. And 2. Of 1. The