Microeconomics/Macroeconomics 2010

<p>^Both are expansionary monetary policies; however, the Fed rarely ever changes the reserve requirement. It’s one of the tools of the Fed, but the Fed instead much more commonly buys bonds/securities.</p>

<p>why would anyone buy an ap econ study book?</p>

<p>^Why shouldn’t an individual purchase one?</p>

<p>@ briangt: Because the Marginal Benefit is bigger than the Marginal Cost </p>

<p>:D</p>

<p>Also, could someone help me with: <a href=“http://talk.collegeconfidential.com/ap-tests-preparation/915708-microecon-frq-question-2006-2-a.html[/url]”>http://talk.collegeconfidential.com/ap-tests-preparation/915708-microecon-frq-question-2006-2-a.html&lt;/a&gt;&lt;/p&gt;

<p>For Macroeconomics:</p>

<p>I’m reading the PR 2008 Ma/Mi review book. I was not in the course because my school has restrictions, and I wonder if the revview book is comprehensive enough?</p>

<p>Also, this is what it says for the three stages of AS:</p>

<p>Depression:</p>

<p>“During a depression, firms have large inventories and excess capacity and would be glad to sell more output at the existing price level. Likewise, workers and other factors of production are plentiful and the economy can increase its output without placing output without placing upward pressure on prices or wages. In other words, during a depression, changes in aggregate demand affect real GDP but not the price level.”</p>

<p>Strictly in regards to the AP exam, do we have to know why the Depression stage is horizontal, or is knowing that it is horizontal enough?</p>

<p>I am taking the AP Micro exam, but haven’t even started studying yet…I already have bio, german, and apush</p>

<p>

Lol 10char</p>

<p>

Same…4 other APs besides Micro so I even if I am self-studying it is on the bottom of my list.
I like went through half of the PR book like 2 weeks ago during my spring break, but I haven’t touched it since then.</p>

<p>My friend told me Phillips curves are on AP Micro… is this true?</p>

<p>I’m taking Macro…haven’t started studying yet but I have a B+ in the class. It’s at the bottom of my list so far</p>

<p>Hey does anyone know how to convert the raw score you’d get from the practice tests on PR to an AP score (1…5)? </p>

<p>Also
In order to go from national income to GDP one must</p>

<p>A. add depreciation expenses
B. add indirect taxes
C. subtract subsidies
D. add the net income of foreigners
E. all of the above</p>

<p>I won’t begin reviewing for Micro until my other 3 exams are over. That gives me a solid week for just Micro.</p>

<p>@antonioray: I believe so.</p>

<p>@moralitycougar: I believe that the Philips curve is on the test, but, really, it isn’t much of a big deal. It’s the downward curving graph that has inflation v. unemployment correct (thus making those two have an inverse relationship)? If so, then don’t forget to remember that it corresponded with the economic conditions of the 1960’s, but not with those in the '70’s because there was stagflation. Also, I believe that the Long -Run Philips Curve is vertical. And, yea.</p>

<p>@stars: A?</p>

<p>@ startsfallonus: From an actual test, 71/90 (78.89) is a 5.</p>

<p>So I studied Macro using Barron’s. But I’m really uneasy about it. Anyone here used Barron’s only for self-study? I’m not sure if I need extra material.</p>

<p>ryanxing:)
I am self-studying too but using PR. I started the study during Spring Break with a textbook. However, it seems like it takes too much time going over the textbook. So I just read PR and find the corresponding text in the textbook whenever I don’t understand something. I am going over all the concepts right now, and doing the practice quesitons that I can get hold of. The tricky thing is, I have a bunch of questions that I don’t know whom to ask. </p>

<p>So here’s just a few, maybe somene can help me a little bit.

  1. Are marginal value and marginal utility the same thing?
  2. PR page 109, qustion 26
    Which of the following could have caused an increase in the demand for ice cream cones?
    a. A decrease in the price of ice cream cones
    b. A decrease in the price of ice cream, a complimentary good to ice cream cones
    (I chose B but the correct answer is A. Doesn’t a decrease in price increase the quantity of ice cream cones demanded instead of the ice cream cones demanded?)
  3. PR page110 question 31
    There’s a game theory graph, can’t draw it. I don’t know if the which side should be company A and which side shuld be company B. And somehow, the answer prvided doesn’t work for either.</p>

<p>macro seems to be a lot harder than macro</p>

<p>i got a solid 5 on micro practice, but a low 4 on macro… i am worried…</p>

<p>Can someone please explain III where is says that “trade can occur between the two countries when 2.5 units of fish are exchanged for 1 unit of wheat”. I don’t understand how the value 2.5 was obtained.</p>

<p>Fish<br>
Country A 10 labor-hours<br>
Country B 20 labor-hours </p>

<p>Wheat
Country A 20 labor-hours
Country B 60 labor-hours</p>

<ol>
<li>The table above indicates labor-hours needed to produce a single unit of each
of two commodities in each of two countries. If labor is the only factor used to
produce the commodities, which of the following statements must be correct?
I. Country A has an absolute advantage in the production of both commodities,
but a comparative advantage in the production of wheat.
II. Country B has an absolute advantage in the production of both commodities,
but a comparative advantage in the production of fish.
III. Mutually advantageous trade can occur between the two countries when
2.5 units of fish are exchanged for 1 unit of wheat.
(a) I only
(b) II only
(c) III only
(d) I and III only
(e) II and III only</li>
</ol>

<p>Can anybody explain Economies of Scale? I know it’s the part on the LRAS curve heading downwards, but what is the formal definition? Thanks</p>

<p>Any one know of where to get past released exams(other than college board)(both Micro && Macro)?</p>

<p>mathmathmathmath, I believe that economies of scale is like you put $1 in, and get more than $1 in return. Diseconomies of scale is put in $1, get less than $1 in return. The middle one, I don’t remember the name, is just $1 in, $1 out.</p>