Part ONe: Introduction to Economics
| APMacro: 1-1, Introduction.ppt |
| APMacro: 1-2, Introduction_continued.ppt |
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Why Steak Gets to New York:
"Why resources are more efficiently allocated when individuals pursue their own self-interest. In the words of Adam Smith: 'It is not from the benevolence of the butcher, the brewer, or the baker, that we can expect our dinner, but from their regard to their own interest.' The Invisible Hand." Be able to discuss: a) Why does our own self-interests allow for more efficient allocation of resources in our economy? b) What is meant by the 'Invisible Hand' theory of Adam Smith? c) How might this be different in a command-based economy? |
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Scarcity and Choice:
The greatest issue in economics is scarcity--limited resources to provide for unlimited wants. Be able to discuss: a) Examples of limited resources. b) What is economics the study of? c) What is scarcity and how is it decided who gets what? |
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Micro vs. Macro:
This short video explains the difference between Microeconomics and Macroeconomics. Be sure to know this difference! |
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Positive vs. Normative Statements:
This short video explains the difference between Positive and Normative statements in economics. Be able to discuss: a) Examples of positive statements vs. normative statements. |
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Opportunity Cost
This video reviews the idea of opportunity cost. A fun little video examining the opportunity cost of attending a college video game. Enjoy! |
Part Two: Factors of Production
| AP Macro: _1-3_terms_and_4_factors.ppt |
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Resources:
This video looks at four types of resources used in production. Many economists categorize resources into three segments, not including 'entrepreneurial ability.' This video includes all four. Be able to discuss: a) Describe the four types of resources (many economists put resources into three categories) b) In this video, why is money not considered capital? c) What is an entrepreneur? |
Additional Resources
Video Links
Factors of Production, youtube video
Information Links
Factors of Production explanation
Another Factors of Production explanation
Marginal Analysis: An examination of the additional benefits of an activity compared to the additional costs of that activity. Companies use marginal analysis as a decision-making tool to help them maximize their profits. Individuals unconsciously use marginal analysis to make a host of everyday decisions. (from www.investopedia.com)
Factors of Production, youtube video
Information Links
Factors of Production explanation
Another Factors of Production explanation
Marginal Analysis: An examination of the additional benefits of an activity compared to the additional costs of that activity. Companies use marginal analysis as a decision-making tool to help them maximize their profits. Individuals unconsciously use marginal analysis to make a host of everyday decisions. (from www.investopedia.com)