All AP Macro Micro Notes
Micro:
Floor: govt imposed limit or minimum price that can be charged for a good or service
Price floor holds no weight unless the price equilibrium falls below it
Production possibilities and Trade offs
a. PPC defined
b. Economic model that provides the opportunity cost
c. PPC examples
d.
Resources are not equally suited to both items
Comparative advantagecondition in which a nation state is capable of producing some product at a lower opportunity cost examples of advantage and trade
avocado
soy beans
avocado prod
soybean prod
us
9
3
1/3
3
mexico
8
2
1/4
4
cloth
coco
cloth prod
coco prod
pakistan
5000
1000
1/5
5
belgium
1000
5000
5
1/5
Command Economy
USA Market Economy
//
Market economy economic system characterized by private ownership of property and the un regulated exchange of goods and services
1. private property
2. earned profits
3. freedom of choice
Command EconomyCommunism a central authority directs all economic activity
19th century development Mixed Economysocialism
*other economic systems exist such as traditional 1. Market
a. Goods and services market
b. Factor Markets
2. HOuse holds
a. People living together making joint decisions
3. Businesses a private entity that makes goods and services ownes 1.
2.
3.
4.
#ownes
Liability
Man.
Enterpri
se
ease to start end
%of busines ses
% of ex. receipts
Sole
1
unlimite d limited
easy
75%
5%
polar opposite s
Partners hip more than 1
unlimite d still limited but not as bad
easy hard
15%
15%
N16
Doctor
corporat ion thousan ds limited
vast
hard impossi ble
5%
75%
walmart
franchise= corporation
Government political institutions that apply normative values
Floor: govt imposed limit or minimum price that can be charged for a good or service
Price floor holds no weight unless the price equilibrium falls below it
Production possibilities and Trade offs
a. PPC defined
b. Economic model that provides the opportunity cost
c. PPC examples
d.
Resources are not equally suited to both items
Comparative advantagecondition in which a nation state is capable of producing some product at a lower opportunity cost examples of advantage and trade
avocado
soy beans
avocado prod
soybean prod
us
9
3
1/3
3
mexico
8
2
1/4
4
cloth
coco
cloth prod
coco prod
pakistan
5000
1000
1/5
5
belgium
1000
5000
5
1/5
Command Economy
USA Market Economy
//
Market economy economic system characterized by private ownership of property and the un regulated exchange of goods and services
1. private property
2. earned profits
3. freedom of choice
Command EconomyCommunism a central authority directs all economic activity
19th century development Mixed Economysocialism
*other economic systems exist such as traditional 1. Market
a. Goods and services market
b. Factor Markets
2. HOuse holds
a. People living together making joint decisions
3. Businesses a private entity that makes goods and services ownes 1.
2.
3.
4.
#ownes
Liability
Man.
Enterpri
se
ease to start end
%of busines ses
% of ex. receipts
Sole
1
unlimite d limited
easy
75%
5%
polar opposite s
Partners hip more than 1
unlimite d still limited but not as bad
easy hard
15%
15%
N16
Doctor
corporat ion thousan ds limited
vast
hard impossi ble
5%
75%
walmart
franchise= corporation
Government political institutions that apply normative values