Transcript AP Economics - cloudfront.net

Problem Set #2
Score your own Practice
FRQs
FRQ #1:
10 Points Total
FRQ #1
10 Point Total
2point Drawing and labeling a supply and
demand graph with equilibrium price and
quantity
2point (a) Drawing and labeling a decrease
(leftward shift) in supply
2point (b) Drawing and labeling an increase
(rightward shift) in demand
2point (c.i) Price increases
2point (c.ii) Quantity is indeterminate
FRQ #2:
10 Points Total
10 Point Total
1point (A) Drawing and labeling an increase
(rightward shift) in supply.
1point Stating that price decreased and
quantity increased.
2point (B) Price Floor (line) drawn above
equilibrium
1point (B.i) Quantity demanded decreases
1point (B.ii) Quantity supplied increases
2point (B.iii) Consumers surplus decreases
1point (C.i) Price decreased after
1point (C.ii) Qd increased, Qs decreased
Instructions
1. Put away you pen and pencils
2. Put your name on the bottom of the
page.
3. We will grade questions 1, 2, 4, and 6
4. After grading each question, write in
their score in the blank. ex: ( ____/5)
5. Follow the directions explicitly!
1. Key Concepts
5 Points Each
1a. Laws of Demand and Supply
5 Point Total
1 Points- Correct definition of Law of Demand
(Inverse relationship between price and
QUANTITY demanded)
1 Points- Example of Law of Demand
1 Points- Correct definition of Law of Supply
(Direct relationship between price and
QUANTITY supplied)
1 Points- Example of Law of Supply
1 Points- Clarity of examples
1b. Laws of Dim. Marg. Utility
5 Point Total
2 Points- Correct definition of the Law of
Diminishing Marginal Utility
(As you consume more of any good, the additional
satisfaction from each new unit will eventually
start to decrease)
2 Points- Example of the Law
1 Points- Clarity of example
1c. Normal and Inferior
5 Point Total
1 Points- Correct definition of normal good
(when income increased, demand increases)
1 Points- Example of normal good
1 Points- Correct definition of inferior good
(when income increased, demand decreases)
1 Points- Example of inferior good
1 Points- Clarity of examples
1d. Consumers and Producers Surplus
5 Point Total
1 Points- Correct definition of Consumers Surplus
(difference between the amount a buyer is willing
to pay and the price they do pay)
1 Points- Example of CS
1 Points- Correct definition of Producers Surplus
(difference between the price and the sellers
minimum price)
1 Points- Example of PS
1 Points- Clarity of examples
?
2a. S&D Notesheet
5 Points Total
2a. Notesheet
5 Point Total
Note sheet: Demand and Supply
5 points if completed entirely. NO blanks.
(exclude the second S&D graph on the back)
4 points if one graph or section blank
3 points if two sections blank
2 points if three sections blank
1 point if four sections bank
2b. S&D Practice Sheet
15 Points Total
2a. Practice Sheet
15 Point Total
1 point- for EACH problem correctly analyzed and
labeled. (14 points)
Don’t worry about the shifter.
1 point- if every problem is attempted. No Blanks.
Before grading, quickly check
the labeling of each graph.
If any curve is not labeled OR if
Pe, Qe, P1 or Q1 are missing
mark the answer incorrect.
2a. Practice Sheet
1 Point Each (circle their mistake)
1. D decrease, P and Q decrease
2. S decrease, P increase and Q decrease
3. D increase, P and Q increase
4. S decrease, P increase and Q decrease
5. S decrease, P increase and Q decrease
6. D increase, P and Q increase
7. S increase, P decrease and Q increase
8. D increase, P and Q increase
9. S decrease, P increase and Q decrease
10. No shift, surplus, P increase, Qd dec. Qs inc.
11. S increase, P decrease and Q increase
12. S increase, P decrease and Q increase
13. No shift, Ceiling below eq, P dec. Qd inc. Qs dec
14. S inc AND D inc, P Indeterminate and Q inc
4b. FRQ:
10 Points Total
4b. FRQ
10 Point Total (Graphs must be correctly labeled to earn point)
1 point- increase/rightward shift in supply for
laptops (Must have Graph)
1 point- i. decreased price for laptops
1 point-ii. increased quantity (output) for laptops
1 point- iii. TR increases for laptops
1 point- decrease/leftward shift in demand for
desktops (Must have Graph)
1 point- iv. decreasing price for desktops
1 point- v. decrease quantity for desktops
1 point- increase/rightward shift in demand for
DVD burners (Must have Graph)
1 point- vi. increase in price for DVD burners
1 point- vii. increase quantity for DVD burners
Question #6:
10 Points Total
Question #6
a. 4 Point Total
1 Points- Correct Marginal Utility for CDs
1 Points- Correct Marginal Utility for DVDs
1 Points- Correct Marginal Utility per $ for CDs
1 Points- Correct Marginal Utility per $ for DVDs
Question #6
b. 3 Point Total
1 Point- for identifying the correct utility
maximizing combination as 2 CDs and 4 DVDs
2 Points- ExplanationTo find the utility maximizing combination first
you must calculate per dollar (MU/P). (1 point)
You continue buying the good with the highest
marginal utility per dollar until you reach the
income constraint of $100. (1 point)
Question #6
c. 3 Point Total
1 Point- for identifying the correct utility
maximizing combination as 3 CDs and 5 DVDs
2 Points- ExplanationWith an additional $30 you should buy one more
CD and one more DVD. (1 point)
You continue buying the good with the highest
marginal utility per dollar until you reach the
income constraint of $130. (1 point)
?
2a. Practice Sheet
1 Point Each (circle their mistake)
1. D decrease, P and Q decrease
2. S decrease, P increase and Q decrease
3. D increase, P and Q increase
4. S decrease, P increase and Q decrease
5. S decrease, P increase and Q decrease
6. D increase, P and Q increase
7. S increase, P decrease and Q increase
8. D increase, P and Q increase
9. S decrease, P increase and Q decrease
10. No shift, surplus, P increase and Q decrease
11. S increase, P decrease and Q increase
12. S increase, P decrease and Q increase
13. No shift, Ceiling below eq, P dec and Q dec
14. S inc AND D inc, P Indeterminate and Q inc
4b. FRQ
10 Point Total (Graphs must be correctly labeled to earn point)
1 point- increase/rightward shift in supply for
laptops (Must have Graph)
1 point-i. decreased price for laptops
1 point- ii. increased quantity (output) for laptops
1 point- iii. TR increases for laptops
1 point- decrease/leftward shift in demand for
desktops (Must have Graph)
1 point- iv. decreasing price for desktops
1 point- v. decrease quantity for desktops
1 point- increase/rightward shift in demand for
DVD burners (Must have Graph)
1 point- vi. increase in price for DVD burners
1 point- vii. increase quantity for DVD burners