AP微觀經(jīng)濟學總結(jié)QuantEquity

FX

and

goldDerivativesFixed

incomePortfolioAnalystEconomicsWhy

AP?College

level

courseGrant

student

creditHigher

chances

for

college

enrollmentAbout

the

test%

of

GradeNumber

ofQuestionsTime

AllottedReadingPeriodSection

I66

2/36070

minutesSection

II33

1/31

long

+

2short50

minutes10

minutesAbout

the

testAP

ScoreQualification5Extremely

well

qualified4Well

qualified3Qualified2Possibly

qualified1No

recommendation1.

Basics

of

Micro-econEconomics

defined

Economics

studies

how

resources

are

usedand

how

can

be

used

to

their

fullestpotential.

Macroeconomics:

involves

economicproblems

concerned

by

the

nation.

Microeconomics:

concerns

the

economicproblems

faced

by

individuals,

or

firms.成本支出要素需求銷售收入產(chǎn)品供給產(chǎn)品需求消費支出要素收入要素供給企

業(yè)家

庭產(chǎn)品市場要素市場實物流貨幣流MicroeconomicsPositive

vs.

normative

economicsPositive

economics:

is

based

on

thescientific

methods,

Normative

economics:

involves

one’svalue

judgments,

personal

opinions,

andnot

based

on

a

scientific

investigation.Neither

of

these

two

has

superiority.ResourcesA

resource

is

anything

that

can

be

used

toproduce

a

good

or

service.

It

includes:Land:

all

natural

resources.

Labor:

all

human

attributes

that

are

productive,eg.

labor

force,

labor

time,

intellectualcapability,

etc.

Capital:

productive

equipment

or

machinery,eg.

factory,

computers,

paper

clips,

etc.Opportunity

costOp

cost

is

what

must

be

sacrificed

toobtain

something.

In

the

macroeconomics,

op

cost

is:

if

anation

decides

to

produce

one

more

unitof

product

A,

how

many

units

of

product

Bwill

have

to

be

sacrificed?E.g.

opp

cost

of

guns

=

1.67

poundsAssume

an

economy

canonly

produce

guns

and

butter

withits

national

resources.

Given

limited

resources,

many

combinations

of

guns

and

betterwithdifferent

amounts

can

be

realized

and

a

production

possibilities

frontier

is

thus

formed.

All

the

points

along

the

frontier

are

viewed

as

equal.Points

inside

the

frontier

mean

resources

are

not

fully

used.

Points

outside

the

frontier

cannot

be

reached

under

current

resource

constraint.Production

possibilities

frontie18cannot

be

reached.BGunsAC30

ButterDAll

the

points

along

the

frontierare

equal:

A,

B,

CPoints

inside

the

frontier,

D:resourcEes

are

not

fully

used.Points

outside

the

frontier,

E:Production

possibilities

frontieshiftsTwo

factors

cause

the

frontier

to

shift:Changes

in

the

amount

of

resources:Land:

new

territory

found,

oil

exploitationLabor:

population

growth,Capital:

place

new

equipmentChanges

in

technology

and

productivity.Positive

change:→,reach

“E〞Negative

change:←,reach

“D〞Law

of

increasing

costsGuns15AAs

more

of

a

product

isproduced,

its

op

cost

increases.When

the

resources

are

shiftedfrom

butter

to

gun

production,not

many

more

guns

areproduced,

but

a

lot

of

buttermust

be

sacrificed.

The

op

costof

producing

guns

becomeshigh.When

resources

are

forced

towork

in

an

iBndustry

whBeurtettehreyare

not

pro2f5icient,

they

are

lessproductive,

and

the

op

cost

ofComparative

advantageLabor

hours

needed

to

produce

a

unit

of:CountryWheatClothPortugal1020England2060Absolute

advantage:

the

production

can

bemade

more

efficiently.Comparative

advantage:

a

nation

canproduce

the

good

with

a

lower

op

cost.Portugal

has

an

absolute

advantage

overEngland

in

both

wheat

and

cloth

production.But

trade

can

still

be

beneficial

to

bothcountries

even

if

Portugal

has

the

absoluteComparative

advantageCountryWheatClothOpportunity

costsPortugal211/2

c/w2

w/cEngland

3

1 1/3

c/w 3

w/cEngland

has

lower

op

cost

in

wheat,Portugal

has

lower

op

cost

in

cloth.Each

country

produced

only

the

good

withcomparative

advantage

(lower

op

cost)

andtraded

for

the

other

good.Specialization:

each

given

120

hrBefore

specializationClothWheatEngland13Portugal52Total65After

specializationEngland06Portugal60Trade

is

beneficial

to

all

parties

evenwhen

one

party

has

an

absoluteadvantage

in

everything.2.

Demand

and

SupplyDemand

and

SupplyDemandLaw

of

demandDemand

curveDeterminants

of

DemandShift

in

demand

and

move

along

demandSupplyLaw

of

supplySupply

curveDeterminants

of

supplyShift

in

supply

and

move

along

supplyEquilibriumPrice

controlDemandThe

DemandFunctiondemanded

dependson

income,

theprices

of

othergoods,

as

well

asother

factorsPP*the

quantity

ofQ*QDemandDeterminants

of

DemandPrice

of

productConsumers’

incomeConsumer

tastesPrices

of

substitute

productsPrices

of

complementary

productsExpected

future

price

of

the

productSupply

The

SupplyFunction

The

quantitysupply

dependson

the

sellingPP*price

,the

costs

of

Pproduction

whichdepend

ontechnology,

thecost

of

labor,

andthe

cost

of

otherinputs

into

the0Q*QDeterminants

of

SupplyPrice

of

the

productThe

number

of

sellers

(providers,

suppliers)Costs

of

resources

or

production

Prices

of

substitute

goods

(goods

that

are

alsoproduced

or

could

be

using

similar

resources)Price

expectationsTechnologyTaxes/subsidiesSupplyShifts

in

and

Movements

alongDemand

and

Supply

CurvesMovements

along

demand

and

supplycurves.沿著需求〔供給〕曲線挪動

A

change

in

the

market

price

that

simplyincreases

or

decreases

the

quantitysupplied

or

demanded

is

represented

by

amovement

along

the

curve.Shifts

in

demand

and

supply

curves.需求Shifts

in

Demand

and

Supply

CurveAn

increase

in

demandPriceQuantityOriginal

demandA

decreasein

demandOriginal

supply

QuantityPriceA

decrease

in

supplyAn

increase

in

suppleChange

in

DemandChange

in

SupplyP0P1Q0

Q1Change

inQuantitySuppliedPriceSupplyQuantityPriceDemandQ0

Q1Change

inQuantityDemandP0P1QuantityMovements

along

Demand

andSupply

CurvesMarket

EquilibriumQQ*O

Equilibrium

price

and

the

equilibriumquantity

When

have

a

market

supply

and

marketdemand

curveP

for

a

good,

we

can

solve

for

theprice

at

which

the

quantityS

supplied

equals

thequantity

demanded.

WeE

define

this

as

theequilibriumP*price

and

the

equilibrium

quantity.DMovement

toward

Equilibrium

If

the

price

is

above

its

equilibrium

level,the

quantity

willingly

supplied

exceeds

thequantity

consumers

are

willing

to

purchase,and

we

have

excess

supply.

Supplierswilling

to

sell

at

lower

price

will

offer

thoseprices

to

consumers,

driving

the

marketprice

down

towards

the

equilibriumlevel.level,

the

quantity

demanded

at

that

priceexceeds

the

quantity

supplied,

andwe

haveSuppliers

reduce

productionin

response

to

declining

priceSupplysuppliedQuantity

Quantitydemandedat

$600/ton at

$600/tonDemand3,000Excess

supplydrives

pricetoward

equilibrium$600$500$/tonDemandSupplyQuantitydemandedQuantitysuppliedat

$400/ton at

$400/tonExcess

demanddrives

pricetoward

equilibriumSuppliers

increaseproduction

in

response

to

rising

price3,000$

500If

the

market

price

is

be$4l00ow

its

equilibrium$/

tonChanges

in

EquilibriaSE*E0D*DP0P0P*Q0Q*QS*E0E*DP0P*P0Q0Q*QSChange

in

both

D

and

S→→Unknown+←←Unknown-→←+Unknown←→-UnknownEquilibriumPriceQuantityDemandSupplyP’P0P’’Excess

supplyExcess

demandEquilibrium(E):no

excess

supply

or

demandThe

Characteristics

of

EquilibriThere

is

no

tendency

for

change

The

demand

function

and

supply

functionstay

the

same

or

constant.The

amounts

demanded

equal

theamounts

supplied

(at

the

intersection

ofsupply

and

demand).There

is

no

surplus

or

shortage;

thePrice

ceiling

prohibits

prices

fromrising

above

a

certainlevel.

Price

was

placed

under

the

equilibrium

price

because

of

the

price

ceiling.

Demandof

this

product

is

sufficient

but

supply

is

in

shortage.

Price

ceilingwill

lead

to

consumer

coupons.

Consumers

have

to

wait

inlonglines

to

makepurchases,

or

suppliers

may

sell

to

friends

first,

or

suppliers

officially

sell

at

the

ceilingprice

but

take

bribes

to

do

so,

or

supplier

may

reduce

thequality

of

goods,

or

black

market

appears.Price

CeilingsPQSCeiling

price(max)15258060DExcessdemandCeiling

<

Equilibrium

P*P*Price

CeilingsPr