1. All makeup work is due by the beginning of class on Monday
AP ECONOMICS: January 25
Warm-up
Country X and Country Y are trading partners. They both produce furnaces and solar panels. The countries can produce the following amounts using equal amounts of resources: Country X: 6 furnaces or 8 solar panels Country Y: 6 furnaces or 12 solar panels (a) Which country has an absolute advantage in producing solar panels? Explain. (b) Calculate the opportunity cost of a furnace in Country Y. (c) Which country has the comparative advantage in producing furnaces? Explain. (d) Would 2 furnaces exchanged for 1 solar panel be acceptable terms of trade for both countries?
Learning Target In order to establish a thorough understanding of how a free market economy works, I will analyze market equilibrium. I will know I have it when, on a supply and demand graph, I can draw and explain examples of how a change in equilibrium price and quantity can occur and the impact on the S and D graph. --Worksheet 7.5 (HO from yesterday)
--on the back of Worksheet 7.5, draw four S & D graphs showing: (1) an increase in D; (2) a decrease in D; (3) an increase in S; and (4) a decrease in S. Include a hypo- thetical reason for the shifts and indicate the new Pe and Qe on your graphs.
Assignment MCT #1 Practice Questions (HO)—omit #7 Tue.: FRQ #1 (Production Possibilities) & FRQ #2 (Comparative Advantage)
Wed.: MCT #1
All makeup work is due by the beginning of class on Monday