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Saturday, March 5

  1. page --Micro vs. Macro AP MICE edited Macroeconomics Macroeconomics is a study of the structure, performance, and decision-making of the…
    Macroeconomics
    Macroeconomics is a study of the structure, performance, and decision-making of the economy as a whole. Economists use GDP, unemployment rates, and price indices to follow economic trends. GDP (Gross Domestic Product) is the total output of a country. The GDP can be used as a measure of a nation's standard of living. The GDP is monitored closely as an indicator of economic health. See the link to get the most recent update on the U.S. GDP. Unemployment rate is a percentage of the population that is looking for work, but do not have a job. The unemployment rate does not include people who are unemployed, but are not looking for a job. Price indices are the average price for an entire group of goods or services.
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    Quantity Supplied. Microeconomics is the branch of economics that analyzes the market behavior between producers and consumers to understand the business-making process made by firms and households. It is concerned with the interactions between producers and consumers as well as the factors that influence choices made by the buyers and sellers. It provides mathematical insight to predict market activity. Compared to Macroeconomics, microeconomics zooms in on the big picture at the smaller details and focuses on the theories of supply and demand and how individual business produce a certain amount of a good as well as its price.
    {5esmicro.gif}
    Microeconomics
    Microeconomics is one of the main fields of the social science of economics.
    It considers the behaviour of individual consumers, firms and industries.
    Microeconomics is a branch of economics that studies how individuals, households, and firms make decisions to allocate limited resources, typically in markets where goods or services are being bought and sold.
    Microeconomics examines how these decisions and behaviors affect the supply and demand for goods and services, which determines prices, and how prices, in turn, determine the supply and demand of goods and services.
    Microeconomics has been called “the bottom-up view of the economy”, or “how people deal with money, time, and resources.” One of the goals of microeconomics is to analyze market mechanisms that establish relative prices amongst goods and services and allocation of limited resources amongst many alternative uses.
    Microeconomics analyzes market failure, where markets fail to produce efficient results, as well as describing the theoretical conditions needed for perfect competition.
    Significant fields of study in microeconomics include markets under asymmetric information, choice under uncertainty and economic applications of game theory.
    "Microeconomics." Science Daily: News & Articles in Science, Health, Environment & Technology. Web. 01 Mar. 2011. http://www.sciencedaily.com/articles/m/microeconomics.htm.

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Monday, February 28

  1. page Cost Benefit Analysis ECON edited ... For Example, the athletic teams would use a cost benefit analysis to convince the school board…
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    For Example, the athletic teams would use a cost benefit analysis to convince the school board to put in field turf. When presenting a cost benefit analysis, facts are a necessity to favorably presenting the plan. For example, the field turf costs less to maintain and in the long run it would cost less. Everyone can use it with out ruining the field; even intramural sports can use the field. The negatives include, history of more people getting hurt on the turf. Also, the calculations with the new field would cost about a million dollars, but its almost $0.00 to maintain it, and it has unlimited use so everyone can use it. The grass field needs constant attention, and needs workers to plant seeds, water, fertilize and cut it. By not paying the workers and the cost of seeds, fertilizers, and water you save about $50,000- $100,000 a year, so in the long run you are saving money. In general, this cost benefit analysis shows that it would cost a lot of money, but in the long run, money would be saved.
    Below is a picture Example of a Cost Benefit Analysis
    {webkit-fake-url://59A6864E-2BDC-469C-AC70-532D0835C6D6/application.pdf}
    Article:
    {http://www.strategicmarketsegmentation.com/wp-content/uploads/2009/03/cost-benefits-table.jpg}
    http://healthychild.org/blog/comments/a_new_turf_war_synthetic_turf_in_new_york_city_parks/, The Title of this article is A New Turf War/Synthetic Turf in New York City Parks, The Article relates to Cost Benefit Analysis, because just like in my example above, the author also talks about the positive and negatives it would have in the community. They talk about the positive and negatives of money, environmental impact, patience, and the safety of the fields compared to grass
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Sunday, February 27

  1. page Scarcity and Opportunity Cost AP MICE edited ... Diagram {http://www.newlearner.com/courses/hts/cia4u/images/scarcity.jpg} ... of scarcity…
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    Diagram
    {http://www.newlearner.com/courses/hts/cia4u/images/scarcity.jpg}
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    of scarcity.
    Results of Scarcity
    As a result of scarcity, we are forced to make many important decisions on a regular basis. Some of the questions we are forced to consider are explained in the diagram:
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    Diagram
    {Ppf2_small.png}
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    opportunity cost.
    Results of Opportunity Cost
    Because we have opportunity costs, we are unable to produce an unlimited amount of goods. For each additional good we produce, we must sacrifice producing a different good. One common way to illustrate both opportunity costs and scarcity is with a Production Possibilities Frontier.
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  2. page Scarcity and Opportunity Cost AP MICE edited ... Diagram {http://www.newlearner.com/courses/hts/cia4u/images/scarcity.jpg} ... of scarcity…
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    Diagram
    {http://www.newlearner.com/courses/hts/cia4u/images/scarcity.jpg}
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    of scarcity.
    Results of Scarcity
    As a result of scarcity, we are forced to make many important decisions on a regular basis. Some of the questions we are forced to consider are explained in the diagram:
    ...
    Diagram
    {Ppf2_small.png}
    ...
    opportunity cost.
    Results of Opportunity Cost
    Because we have opportunity costs, we are unable to produce an unlimited amount of goods. For each additional good we produce, we must sacrifice producing a different good. One common way to illustrate both opportunity costs and scarcity is with a Production Possibilities Frontier.
    Article
    __http://docs.newsbank.com/s/InfoWeb/aggdocs/AWNB/1350C9B2D16B80D0/0DF73E411D70C6CA?s_lang=en-US__Link to Article
    The article discusses how "food scarcity looms large worldwide". Food scarcity means that the demand for food exceeds the limited available resources. If "only 94 per cent of the total demand of food grains will come to the food markets", we are dealing with values below equilibrium. This means that there is a shortage due to the quantity demanded exceeding the quantity supplied. This shortage is the "6.0 per cent deficit of food grains mentioned in the article. This decrease in supply and increase in demand has also caused the equilibrium price to increase, which is the "4.2 per cent increase in the price of food".
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    get food.
    The
    The article also
    It is also noted how some families are being forced to spend up to 70% of their income on food. As we have seen, this will greatly impact their ability to spend money on other goods, which will greatly decrease the demand for those other goods, hurting the economy.
    The articles mentions the idea of the government providing incentives for non-government sectors to import food grains. These incentives would increase the marginal benefits experienced by these groups, hopefully causing them to exceed the marginal costs, which would cause these groups to help import the food grains.
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  3. page Theory of Consumer Choice AP MICE edited ... Marginal utility of x divided by the price of x equals the marginal utility of y divided by th…
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    Marginal utility of x divided by the price of x equals the marginal utility of y divided by the price of y.
    Out of several different combinations of two goods, the one that satisfies the above equation is the ideal combination for the consumer and also is the combination that satisfies the theory of consumer choice.
    ARTICLE TO EMPHASIZE THEORY OF CONSUMER CHOICE:
    http://www.tgdaily.com/consumer-electronics-brief/52831-85-prefer-ipad-over-expensive-galaxy-tab
    By: Steven, Vickram, Will

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  4. page Theory of Consumer Choice AP MICE edited People are constantly dealing with opportunity cost in their lives, due to the condition of scarcit…
    People are constantly dealing with opportunity cost in their lives, due to the condition of scarcity. Therefore, people make decisions based on not only their preferences but also their income constraints. Any income constraint can be modeled by a budget line, showing the combination of goods a person can buy given a certain money income. Below is an illustrated example:
    {webkit-fake-url://0362CFB9-4DCB-411C-9D32-C3FDF4D2D1C4/Figure7.2.gif} This is an example of{http://ingrimayne.com/econ/LogicOfChoice/Figure7.2.gif} Here's a budget line.line
    When looking at people's preferences, an indifference curve is used. If two goods are equally preferable to each other (meaning those goods generate the same utility), then an indifference curve will show the combination of goods a person prefers assuming that the two goods are equally substitutable. The tangent to the graph is the marginal rate of substitution (MRS): if one more of a good was preferred, how much would the person be willing to forgo of an equally substitutable good? Below is an example of an indifference curve:
    {webkit-fake-url://A49CBE29-CF4D-4F18-A361-D9CAE3AACB34/0198606737.indifference-curves.1.jpg}{http://content.answcdn.com/main/content/img/oxford/Oxford_Geography/0198606737.indifference-curves.1.jpg} This is
    The ideal point for the consumer is a combination which the consumer not only can afford but also is the combination which affords maximum utility. Therefore, the optimal decision for a consumer to make is when MRS equals the relative price of goods and where the relative price of goods equals the budget constraints. This is the theory of consumer choice. There is a much simpler formula to use. We shall define MU as the marginal utility of a good. One good will be called X and the other good will be called Y. We shall define P as the price of a good. The formula to show the combination which achieves maximum utility and meets the budget constraint is:
    Marginal utility of x divided by the price of x equals the marginal utility of y divided by the price of y.
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Saturday, February 26

  1. page Determinants of Demand AP MICE edited ... Economics in the News Pretty Pricey Polymer ... of Substitutes. Price of polymers have&qu…
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    Economics in the News
    Pretty Pricey Polymer
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    of Substitutes. Price of polymers have"... increased by 22% in January alone—and has risen by 133% over the past two years," and Americans are reacting to the price change.
    As Americans realize that the price of Polymers will increase in the near future, they will buy more polymers now while the price is relatively low. This relates to Price Expectations of Buyers because Americans are buying more polymers because they expect the price to increase. This increase in demand will shift the demand curve to the right. The article immediately suggest this idea by saying, "Buy that model aeroplane you always promised yourself today, not tomorrow," meaning that it is better to buy it now when the price of polymers is low.
    Secondly, as the price of polymers increase and the price of substitutes stay the same, consumers will buy more of the substitutes, causing the demand curve of the substitutes to shift to the right. The article clearly illustrates this idea by saying, "according to Plastics News some American fast-food chains are switching back to paper cups for fizzy drinks," showing that the demand for paper cups will increase.This shows the determinant Price of Substitues, because as price of polymers increase, the demand for paper cups increase. This also relates to the substitution effect, where at a lower price, consumers will tend to substitute the cheaper good for the more expensive. In this example, Americans have substituted polymers for the more cheaper paper cups.
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